Treasury Approves Plan for Athi River–Namanga Dual Carriageway

Welcome to the Money News Roundup. Today, we cover plans to dual the Athi River–Namanga Road and how Kenya overtook Ethiopia to become East Africa’s largest economy.

Treasury Approves Plan for Athi River–Namanga Dual Carriageway

The National Treasury has approved the initial proposal to upgrade the 136-kilometre Athi River–Namanga road into a dual carriageway to ease congestion and boost cross-border trade with Tanzania.

As reported by the Business Daily, the Public Private Partnership (PPP) Directorate approved the project concept note in September. The road passes through Kitengela, Isinya and Kajiado to the Kenya–Tanzania border.

The upgrade aims to improve traffic flow, enhance road safety and support Konza Technopolis and Nairobi’s expanding metropolitan region.

However, the cost of the project and details of the contractor are yet to be known as the project proceeds to the next stage.

Meanwhile, the proposed 243-kilometre Mau Summit–Malaba dual carriageway has also passed an initial viability assessment.

The project would expand the Northern Corridor highway into a four-lane toll road, complementing the Ksh170 billion Rironi–Mau Summit highway project.

Kenya Overtakes Ethiopia to Become East Africa’s Largest Economy

Kenya overtook Ethiopia in 2025 to become East Africa’s largest economy, with its GDP rising to Ksh17.57 trillion (USD135.92 billion), according to the International Monetary Fund (IMF).

As reported by the Business Daily,  Ethiopia’s economy, previously valued at Ksh28.31 trillion, shrank to Ksh17.04 trillion (USD126.35 billion) following the devaluation of the birr.

Kenya’s GDP grew by 13.7% in dollar terms, supported partly by the shilling’s recovery against the US dollar. 

Ethiopia’s GDP fell by nearly 40%, despite its economy expanding by 9.2% in real terms, compared with Kenya’s 4.6%.

The shift ended Ethiopia’s five-year lead. The IMF projects Kenya will maintain its regional position before overtaking oil-producing Angola in 2028 to become Africa’s sixth-largest economy.

Over Half of Gen Z Kenyans Struggle to Meet Financial Obligations

Kenyan households faced mounting financial pressure in Q2 2026 as income growth slowed, according to TransUnion Kenya’s Consumer Pulse report.

As reported by Citizen Digital, only 30% of consumers reported income increases, down 12% from a similar period last year. Meanwhile, 54% of Gen Z consumers struggled to meet financial obligations, a seven-percentage-point rise.

Inflation climbed from 4.4% in Q1 to 6.4% in Q2, eroding purchasing power. To cope, 53% planned to cut discretionary spending, while 48% intended to reduce major purchases. Only 32% prioritised debt repayment, down from 40% a year earlier.

Sanlam Allianz Plans to Merge Life Insurance Business Into Listed Firm

Sanlam Allianz Holdings Kenya Plc plans to transfer its life insurance operations to the listed company, eliminating its subsidiary structure subject to regulatory approval.

As reported by the Business Daily, the proposed restructuring will see the holding company renamed Sanlam Allianz Life Insurance (Kenya) Plc, while its life insurance subsidiary surrenders its licence and is dissolved.

The move aims to simplify operations and improve efficiency without changing ownership or control. Existing policies will retain their terms. The restructuring could also affect leadership positions currently held by Patrick Tumbo and Jacqueline Karasha.

I&M Capital Secures CMA Licence to Expand Digital Investment Services

I&M Capital is targeting regional expansion after securing a Capital Markets Authority (CMA) licence to operate digital investment platforms.

As reported by Citizen Digital, the Intermediary Service Platform Provider (ISPP) licence allows the I&M Bank subsidiary to facilitate market transactions and distribute investment products through technology-driven platforms.

The approval comes as regulators seek to deepen capital markets and expand retail investor participation through digital services.

I&M Capital plans to leverage its parent company’s digital infrastructure and growing customer base to attract younger professionals and emerging investors.

The firm also aims to expand its wealth management services across Uganda, Tanzania, Rwanda and Mauritius.

Bolt Launches Ksh280 Monthly Subscription With Cashback, Free Deliveries

Bolt has launched Bolt Plus, a subscription service offering Kenyan customers ride cashback, free delivery on eligible orders and priority access to drivers.

As reported by the Star, the service costs Ksh280 monthly, with an introductory rate of Ksh119 for the first six months. New subscribers receive their first month free, while annual subscriptions cost Ksh899.

Members receive 10% cashback on rides, delivery savings of up to Ksh200 per eligible order and three free ride cancellations monthly.

Bolt Food General Manager for Kenya Ivy Njeri Maingi said the service aims to reward loyal customers and encourage more frequent platform usage across supported cities.