Kenya Railways Fails the Accounting Test

Hello 👋🏽 It's Brian from The Kenyan Wall Street.

In today's newsletter edition, the auditor general has revealed that Kenya Railways has a big problem accounting for its assets.

Also, we explain why the high court determined that SHA’s mistakes are not enough to call for its repeal.

Kenya Railways Fails the Accounting Test

By Harry Njuguna

Not long after Kenya Railways reported improving freight volumes and narrowing operating losses, the Auditor General has delivered a reminder that a balance sheet can improve even while a system decays. A qualified opinion for the year to June 2025 cites missing rental income, unfinished asset records, unsupported land holdings, and IT systems still running on software that belongs to another era. The most striking finding is not a single scandal but a pattern: completed projects still classified as “work in progress,” hundreds of land parcels with no title deeds, and public housing units occupied rent-free as the corporation struggles to account for its own assets. What emerges is a portrait of an institution that is expanding commercially while remaining administratively stuck in the past, where revenue growth masks a deeper erosion of governance.

Read the whole story here >>>>>

Why SHA will proceed despite initial mishaps - High Court

By Brian Nzomo 

Kenya’s most ambitious health reform in decades has survived a constitutional challenge, but the High Court ruling reads less like a victory than a warning about how the state manages large systems. Justice Bahati Mwamuye upheld the legality of the Social Health Insurance Fund (SHIF) and the KSh 104.8-billion digital platform behind it, even though he acknowledged that the rushed transition left thousands of patients unable to access treatment when the system first went live. By the time the case reached court, the old NHIF structure had already been dismantled and millions had registered under the new scheme, making a legal reversal almost impossible without destabilizing the entire financing model.

Read the article here »»»»»

I&M Group's Profit Rises 28%

By Chelsy Maina

I&M Group’s 2025 results show profits rising not because lending boomed, but because the bank made more money from cheaper funding and stronger non-interest income.

Financial breakdown :

🟢 Profit after tax rose 27.6% to KSh 18.8 billion as total operating income climbed to KSh 60.3 billion.

🟢 Non-interest income jumped to KSh 14.4 billion, growing much faster than loan income.

🟡 Operating expenses rose to KSh 36.9 billion

🟢 Deposits rose 17% and assets 15%, while loans grew only 6.5%, pointing to cautious lending.

🟢 The dividend increased to KSh 3.75 per share.

Read the financial analysis here >>>>>

Heads Up 

On Your Watchlist 

For timely and insightful market updates, follow our Whatsapp channel here 

The African REITs Conference 2026, hosted by the REITs Association of Kenya, brings together the people shaping the future of listed real estate across the continent — from investors and developers to financiers, regulators, and capital markets leaders.

📍 31st March – 2nd April 2026 | Enashipai Resort & Spa, Naivasha

🎯 Theme: Transforming Africa’s REIT Landscape through Policy Innovation, Market Transparency, and Global Alignment

If you want to be in the room where Africa’s REIT market moves from potential to scale — this is it.

Register your attendance here »»»»»

Keep up with what’s happening on our X and LinkedIn pages. Stay updated with the latest financial news on our website The Kenyan Wall Street.