Kenya is reportedly in talks with a U.S. banking giant to arrange a Ksh129.7 billion debt swap, aiming to reduce its reliance on domestic borrowing.

• The potential debt swap, possibly involving an existing Eurobond, is part of a larger Ksh700 billion external financing program for the financial year ending June 2027.
• Key players include Kenya's National Treasury and an unnamed U.S. banking giant.
• This initiative could allow Kenya to refinance debt on more favorable terms and potentially channel savings towards social programs, such as food support.

Machakos County is facing scrutiny over Ksh96 million held by a bank since 2019 as security for an employee loan scheme.

• Ksh96 million in public funds is held as collateral by SBM Bank.
• The Senate Committee on County Public Investments and Special Funds raised concerns about the arrangement.
• Employees receiving loans are also required to provide personal security, drawing further criticism.

Kenya's Supreme Court has ruled that public-entity-sponsored pension funds are no longer subject to the country's public procurement framework. This decision necessitates the development of new procurement guidelines for these funds.

• The Retirement Benefits Authority (RBA) is leading the initiative to create these new guidelines.
• The ruling, delivered on May 15, 2026, declared Section 2(o) of the Public Procurement and Asset Disposal Act, 2015, unconstitutional as it applied to pension funds.
• The RBA is seeking proposals from stakeholders by Friday, October 9, 2026, at 5pm, to inform the drafting of the proposed Retirement Benefits Procurement Guideline.

The High Court in Nairobi has dismissed a petition seeking the liquidation of the Kenya Union of Savings and Credit Co-operatives Limited (KUSCCO), ruling it was filed under the wrong legal framework.

• The petition sought to liquidate KUSCCO over an alleged unpaid debt of approximately Ksh108.85 million.
• The key organizations involved were the petitioner (an unnamed SACCO) and KUSCCO.
• Justice Rhoda Rutto ruled that KUSCCO is a co-operative society, not a company, and therefore not subject to liquidation under the Insolvency Act.