Welcome to the Money News Roundup. Today, we explain why Kenyans could face blackouts and electricity rationing, and look at Kenya Met’s warning of enhanced El Niño rains, with some areas expected to start receiving rainfall from September.
Kenyans Face Blackouts and Power Rationing as Power Demand Nearly Overtakes Supply
Kenya is facing an increased risk of electricity rationing and blackouts as power demand approaches available supply, shrinking the country’s reserve margin to just 3.34% in June from 20.73% in January.
As reported by the Business Daily, the level is far below the 20%-35% reserve margin recommended by the International Energy Agency, leaving the grid vulnerable during plant maintenance and unexpected outages.
Rising electricity consumption, coupled with constrained local generation and insufficient imports from Ethiopia and Uganda, has tightened supply. Kenya Power data shows peak demand reached 2,549 megawatts in July, up from 2,316 megawatts in the year to June 2025.
The challenge is compounded by growing reliance on wind and solar plants, which now provide about 20% of supply but lack battery storage to support evening demand.
Kenya Power has warned that variable renewable energy now exceeds recommended grid stability thresholds. Prolonged rationing could raise business costs, reduce productivity and slow economic growth.
Kenya Red Cross Proposes Reduction of Speed Limits
The Kenya Red Cross is pushing for changes to Kenya’s traffic laws that would lower speed limits in areas with high pedestrian activity.
As reported by Nation, the proposal seeks to cut the maximum speed in residential areas, CBDs, school zones, health facilities, playgrounds and other pedestrian-heavy locations from 50km/h to 30km/h.
The organisation is also proposing a 20km/h limit on public streets where vehicles and pedestrians frequently interact, a 5km/h tolerance margin above posted speed limits before penalties apply, and a 90km/h cap during wet weather and other high-risk conditions.
It also wants county governments empowered to set lower speed limits on roads under their control. The proposals come amid rising road crashes, with 2,150 deaths recorded by mid-June 2026, including 836 pedestrians.
Also Read: List of All Road Points With NTSA Speed Cameras & the Speed Limits
Investor Offers Aircraft for Equity Stake in Kenya Airways
Kenya Airways says at least four investors from the US, China, South Africa and Singapore have expressed interest in supporting the airline’s turnaround, including one investor offering aircraft in exchange for an equity stake.
As reported by the Business Daily, acting CEO George Kamal said other proposals include equity investments and a multi-billion-shilling loan facility.
The airline is seeking fresh capital to expand its fleet, restore capacity and grow its network after posting a half-year loss of Ksh16 billion. KQ currently operates about 25 aircraft, with several grounded for maintenance, despite strong passenger demand.
As part of its restructuring, the airline is considering converting Ksh131 billion of debt owed to the government and local banks into equity. KQ aims to add up to 15 aircraft by 2030.
Kenya Met Warns of El Niño Rains From September
Kenya is expected to experience above-average rainfall during the October-December short-rains season, with some regions set to begin receiving rains as early as September, according to the Kenya Met.
As reported by the Star, the agency forecasts prolonged wet spells and occasional isolated storms across much of the country, with counties including Nairobi, Nakuru, Kiambu, Nyeri, Meru, Embu, Machakos, Makueni, Kisumu and Kakamega among those expected to record above-average rainfall.
The outlook is linked to a strengthening El Niño. While the rains could support agriculture and water resources, authorities have warned of possible flooding and storm-related disruptions.
NCBA, HEVA Launch Loan for Creatives at 9% Interest Rate
NCBA and HEVA Fund have launched a Ksh20 million financing facility for Kenya’s creative industry, offering loans at a concessional 9% interest rate.
As reported by Capital Business, the fund targets artists and creative businesses seeking capital for equipment purchases, working capital, events and expansion.
The partnership combines NCBA’s lending capacity with HEVA’s expertise in creative-sector financing. Eligible businesses can access funding linked to confirmed contracts, orders and events, with flexible repayment options tailored to irregular creative income cycles.
Beyond credit, beneficiaries will receive financial literacy training, mentorship and business development support aimed at improving sustainability and growth.
Kakuzi H1 Profit Drops to Ksh7.1, Skips Interim Dividend
Kakuzi PLC reported a 97.6% drop in half-year profit to Ksh7.11 million as weakness in its avocado and macadamia businesses hit earnings.
As reported by the Kenyan Wall Street, revenue fell 26% to Ksh1.12 billion, while gross profit declined 82.5% to Ksh114.48 million. The company posted an operating loss of Ksh26.55 million compared to a Ksh396.85 million profit a year earlier.
Avocado profit fell 45.3% amid lower volumes and export challenges, while macadamia profit dropped 78.6% due to weaker prices and sales.
Kakuzi has issued a profit warning for 2026, expects full-year earnings to be at least 25% below 2025 levels, and has recommended no interim dividend as it navigates the downturn.
