In partnership with

Greetings and welcome to the First Money Weekly Roundup of 2025! 

This week, investors in a 6.5-year infrastructure bond issued in December are celebrating impressive returns of over 21%, signaling strong demand for long-term debt instruments in Kenya’s financial markets. In addition, Standard Investment Bank’s Mansa-X fund delivered an outstanding net return of 19.53% for the year ended December 2024

Meanwhile, the Insurance Regulatory Authority (IRA) has revealed that Kenyans withdrew a record Ksh13 billion from their insurance policies, marking a 2.5-fold increase from the previous year. This surge in withdrawals highlights growing financial pressures, as rising living costs and inflation cause more people to cash out their policies.

As always, we’ve included some of our favourite personal finance articles in our Finance Tips section below.

Let’s dive in.

Sponsored Content

Receive Honest News Today

Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.

Sign up today!

NEWS RECAP

What happened this week

📈 Infrastructure Bond Delivers Over 21% Returns

Investors in a 6.5-year infrastructure bond issued in December enjoyed returns exceeding 21% from the secondary market. 

• The bond, which had a face value of Ksh100, has proven lucrative due to its attractive yield, underscoring the strong demand for long-term investment instruments in Kenya's debt market. 

💰 Mansa-X Fund Posts 19.53% Net Return

Standard Investment Bank (SIB) announced its Special Fund, Mansa-X, delivered a 19.53% net return to investors for the year ended December 2024. The fund had a gross return of 24.53% making it one of the highest-performing passive income investments in the market. 

• Mansa-X is a multi-asset fund which has both Kenyan shilling and dollar denominated investments under the regulatory oversight of the Capital Markets Authority (CMA). The Mansa X Dollar Fund recorded for the same period a 12.50% net return.

📉 Insurance Withdrawals Surge to Ksh13 Billion

Insurance policyholders in Kenya withdrew Ksh13 billion in 2023, a 2.5x increase from Ksh5.15 billion in 2022, according to the Insurance Regulatory Authority (IRA). While partial withdrawals surged by 55%, policy surrenders dropped by 16%, as customers avoided penalties for abandoning policies. 

• Rising living costs, mandatory deductions like the National Social Security Fund (NSSF) and National Health Insurance Fund (NHIF), and reduced disposable incomes contributed to the trend. The IRA reports that nearly half of policyholders skipped premiums as inflation and financial pressures intensified.

🌐 Satellite Internet Providers Face Higher Fees

Satellite internet providers, including Starlink, could soon pay an annual license fee of either Ksh4 million or 0.4% of their gross turnover, whichever is higher, under new regulations proposed by the Communications Authority of Kenya (CA). 

• The proposal, which also includes a one-time fee of Ksh15 million, seeks to enforce technology neutrality and open the market to diverse satellite technologies.  While the changes aim to level the playing field, the higher fees may affect pricing for consumers and shape the satellite internet market's growth in Kenya.

🛒 New Taxes Raise Costs of Essentials

Kenyans face a fresh economic burden as new taxes under the The new Tax Laws (Amendment) Act, take effect. The Act increases excise duties on essential goods such as sugar, which now attracts Ksh7.50 per kilo, up from Ksh5. Significant taxes also target the entertainment sector, with a 15% duty on internet and social media advertisements for alcohol, betting, gaming, and lotteries. 

• Imported items like ceramic sinks and transformers will face higher excise duties, adding strain to construction and energy sectors. Critics warn of rising costs on basic goods, reduced consumer purchasing power, and slowed economic growth, but the government insists the measures are crucial for addressing public debt and funding services.

🛡️ Retirement Benefits Get a Boost
The new Tax Laws (Amendment) Act is set to benefit Kenya’s retirement benefits sector, encouraging more Kenyans to save for retirement. According to the Retirement Benefits Authority (RBA), the law raises the tax-deductible contribution limit from Ksh240,000 to Ksh360,000 annually, helping individuals save more without significantly increasing their taxable income. 

• A new provision allows tax-deductible contributions of up to Ksh15,000 monthly for post-retirement medical funds, easing healthcare concerns in retirement. Pension withdrawals for retirees, those withdrawing due to ill health, or after 20 years of membership will now be exempt from income tax. The Act also simplifies fund registration by requiring retirement schemes to register exclusively with RBA, eliminating dual registration with KRA.
  

📊 NSE Foreign Outflows Drop

Foreign investor net outflows at the Nairobi Securities Exchange (NSE) dropped to Ksh16.5 billion, reflecting reduced sell-offs compared to previous months. The decline signals a potential stabilization in investor sentiment despite ongoing global economic uncertainties. 

• The subdued outflows coincide with efforts to enhance liquidity and attract more participants to the local market. Listed stocks' performance continues to be monitored closely, particularly those included in the MSCI indices, which often serve as benchmarks for institutional investors.

Want more news? Check out and subscribe to our daily news summary news letter here - Money News Roundup

MONEY TIPS & TOOLS

This week’s finance tips

Welcome to Money254's Money Tips! Here, we share quick and easy tips that make understanding and managing your money a breeze. We break down the tricky parts of your finances and the financial landscape, making it simple and clear for you. Stay tuned for helpful tips every week.

MONEY254 #MONEYTOK OF THE WEEK

5 Strategies Investors Use to Make Money in the NSE

In today's #MoneyTok, securities in the Nairobi Securities Exchange (NSE). The NSE is the principal securities exchange in Kenya and serves as a platform for buying and selling various financial instruments, including stocks, bonds, and derivatives. Here are some strategies investors use to make money in the NSE. Watch Video.

@money254hq

𝟓 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐔𝐬𝐞 𝐭𝐨 𝐌𝐚𝐤𝐞 𝐌𝐨𝐧𝐞𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐍𝐒𝐄 #money254 #money #moneymanagement #trendingvideo #financialliteracy #save #moneytips #... See more

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

Remember that we can help you compare over 300 loans, savings accounts, current accounts, and more on our website if you’re thinking about your next product.

Tony and the Money254 editorial team.