Hello and welcome to the Money Weekly Newsletter, where we are covering the plans to electrify the SGR from Mombasa to Malaba.

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Kenya in Talks With Turkish Firm to Electrify SGR

Kenya is in talks with Yapi Merkezi Holding, a Turkish firm, to electrify the Standard Gauge Railway (SGR) line.

The firm is currently undertaking an electric railway project in Uganda worth Ksh414 billion. The railway line is expected to run from the Malaba border to Kampala.

Given that Kenya and Uganda are keen on extending the SGR between the two countries, the firm is interested in the deal as it seeks to enable seamless linkage.

Yapi Merkezi Vice Chairman Erdem Arıoğlu said electrification could cut operating costs by up to a third, making the railway more viable.

It is estimated that the project to upgrade the Kenyan line will cost Ksh129 billion (USD 1 billion), depending on the electric trains procured.

The project targets the line from Mombasa to Naivasha and its extension to Malaba.

Yapi Merkezi has also offered to help arrange financing.

William Ruto and his Ugandan counterpart, Yoweri Museveni, recently launched the SGR extension from Naivasha to Malaba.

The total cost of the extension is estimated at Ksh502.9 billion, comprising Ksh380 billion for the Naivasha–Kisumu section and Ksh122 billion for the Kisumu–Malaba section.

Although the government has not disclosed the full financing plan, it is considering attracting foreign financiers and securitising the Railway Development Levy to raise Ksh390 billion.

The extended line will pass through Narok, Bomet, Kericho, Nyamira, and Kisumu counties, with 25 stations planned in major towns, including Narok, Mulot, Bomet, Sondu, Ahero, and Kibos.

Here is a quick recap of the top news stories for the week:

• Dealers have increased cooking gas prices in Nairobi by up to Ksh390 following global supply disruptions linked to the Middle East conflict. A 13kg cylinder now retails between Ksh3,510 and Ksh3,530, up from Ksh3,140 at major petrol stations that also stock their own cooking gas brands. The increase has been driven by a surge in global propane and butane prices. 

• Kenya and Uganda are in talks with Aliko Dangote to build a joint oil refinery in Tanzania’s port city of Tanga, in a bid to reduce the region’s heavy reliance on imported fuel. President William Ruto said the proposed refinery would be modelled after the large-scale facility developed by Dangote in Nigeria. The planned refinery is expected to process crude oil from across the region.

• Prices of imported second-hand cars have surged by up to Ksh429,000 following disputed duty calculations by the KRA. A 2019 Honda Insight (1500cc) now averages Ksh2.6 million, up from Ksh2.2 million, after duty rose to Ksh791,000 from Ksh362,000. Dealers say the new tax computations lack transparency, especially for models not listed in the 2019 Current Retail Selling Price (CRSP) schedule.

• The government has frozen an undisclosed number of user accounts on Binance in its first major crackdown on the cryptocurrency sector, citing concerns over fraud, money laundering and terrorism financing. The police directed the exchange to suspend the accounts pending investigations, with some users reporting sudden restrictions that prevented them from accessing or converting their holdings into cash.  

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KRA Introduces Special PIN for Unemployed Kenyans

The Kenya Revenue Authority has introduced a new “PIN with No Obligation” for students and Kenyans without taxable income.

This means no more filing Nil Returns or penalties if you’re not earning. It’s a major relief, especially for campus students who were previously required to file returns just for having a PIN.

But here’s the catch: once you opt in, you won’t qualify for services like a tax compliance certificate or other iTax-related processes. And if you start earning, you’ll need to transition back to active tax obligations.

That’s a wrap for this week’s Money Weekly!

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