News and Analysis
March 11, 2025
In Summary
In a report by the Business Daily, Nairobi ranked 12th globally in luxury home price growth after prices of prime residential properties rose by 8.3% in 2023, up from a 2.5% rise in 2022, according to Knight Frank and Douglas Elliman real estate firms. This marks one of the largest gains among the world’s top cities, with Nairobi trailing Mexico, Aspen, and Mustique. The prime properties covered are the most desirable and most expensive units in a given location, generally defined as the top five percent of each market by value. The real estate firm says such houses are often bought by international investors.The ranking, based on the Knight Frank Prime International Residential Index, reflects rising demand for high-end homes in areas like Muthaiga, Karen, Runda, Rosslyn, and Gigiri.
In a report by Nation, the High Court has stopped the Directorate of Criminal Investigations (DCI) from investigating alleged embezzlement at the National Police Sacco. The court issued the orders after Sacco officials argued that the probe could harm its operations and credibility. The DCI had obtained warrants to access board members’ personal and financial records, procurement documents, and audit reports. However, the Sacco argued that only the Sacco Societies Regulatory Authority (SASRA) has the legal mandate to inspect such records, citing the Sacco Societies Act and the Sacco Societies Fraud Investigations Unit (SSFIU) as the proper bodies to handle such issues. With Ksh34 billion in deposits, Ksh58 billion in assets, and 75,000 members, the Sacco warned that a DCI probe could trigger panic among depositors.
The Central Bank of Kenya (CBK) plans to raise annual bank licensing fees 22 times to Ksh7.5 billion by 2027, shifting from flat rates to a model that charges 1% of gross revenues, citing the need for increased regulatory oversight. According to the BusinessDaily, banks currently pay a total of Ksh335 million annually, but under the new model, large lenders like Equity and KCB could pay over Ksh1.6 billion each. According to the Business Daily, the CBK will stagger the implementation—starting at 0.6% of revenue in 2025—before reaching 1% by 2027. The Kenya Bankers Association has warned that lenders will likely pass these higher costs to consumers through more expensive loans, potentially raising borrowing costs across the economy. Public feedback on the draft proposal is open until March 31, with the new fees set to take effect in July.
In a report by the People Daily, Mobius Motors, a Kenyan car manufacturer founded over 14 years ago with investments totaling Ksh5 billion, has been acquired by Silver Box, a Middle East-based conglomerate, for an undisclosed amount. Silver Box specializes in intelligent investments and corporate management. The company has resumed operations, including reopening its service center, and plans to fully restart production by July 2025. Models slated for production this year include the Mobius 3 and a new SUV model set for launch by December. Previously, Mobius Motors faced financial challenges, including an Ksh85.74 million tax claim by KRA in 2018 and a debt burden of Ksh649.2 million by 2020. In 2024, shareholders had resolved to place the company under voluntary liquidation before the acquisition.
Investors traded Ksh407.4 billion worth of bonds at the Nairobi Securities Exchange (NSE) in January and February 2025 — a 23% rise from Ksh332.1 billion over the same period in 2024. The spike is driven by high demand for infrastructure bonds (IFBs) offering interest rates of up to 18.5%, now trading at premiums as new issuance rates fall. For instance, an 8.5-year IFB issued in February 2024 is now trading at Ksh119.7 (a 19.7% premium on face value). According to the Business Daily, the surge follows CBK's rate cut from 13% to 10.75% and a Treasury bond buyback worth Ksh50 billion, which injected fresh liquidity. Overall, bond turnover in February 2025 hit Ksh250.2 billion, up from Ksh157.3 billion in January as reported by the BusinessDaily.
In a report by the Capital Business,The expansion of the Rironi-Mau Summit Road is set to begin this June after Cabinet approval to upgrade the 170-kilometer stretch into a four-lane dual carriageway. The Ksh180 billion project, expected to take 24 months, aims to ease traffic congestion along the busy Nairobi-Nakuru-Western Kenya route, notorious for long delays during weekends and holidays. The project had been stalled after President Ruto canceled a French consortium’s tender last year, but is now back on track as part of the government’s wider infrastructure drive. Treasury CS John Mbadi earlier emphasized the urgent need to decongest this transport corridor.
In a report by Nation, the Commission for University Education (CUE) has blacklisted 15 universities and colleges for operating illegally and warned that certificates from these institutions are invalid. Many of the flagged institutions have names suggesting religious affiliations. CUE cautioned Kenyans to verify an institution’s accreditation before enrolling and emphasized that any university not on its official list is unauthorized. Among those blacklisted are Eldoret Bible College, Al-Munawarrah College, Grace Life Bible College, and Africa Theological Seminary.
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