Audit Exposes 720 Govt Staff for Altering 4.3 Million Payroll Records 

Hello and welcome to the Money News Roundup Newsletter, where we cover reforms approved by the Cabinet for the government payroll system. We also cover how Ziidi Trader App is dominating trades at NSE.

Cabinet Approves Payroll Reforms After Audit Reveals 4.7 Million Record Alterations

A government audit has revealed that 720 staff members altered over 4.7 million payroll records in the Government Human Resource Information System-Kenya (HRIS-K), including cases where employees edited their own records, exposing major integrity and cybersecurity gaps. 

As reported by the Star, the Cabinet has approved reforms to stabilise the system, enforce statutory deductions at source, and restore accountability. 

Measures include mandatory HRIS-K security certification by 11 March 2026, deployment of forensic analytics, full integration of a statutory deductions platform, and a governance reset. 

Accounting officers must submit verified payroll data and take responsibility for irregularities. Payroll Audit Units and urgent ICT upgrades will strengthen controls. 

The reforms aim to create a secure, transparent, and accountable payroll system that protects public funds and prevents recurrence of ghost workers.

Other Cabinet decisions;

• The Cabinet approved the Tertiary Education Placement and Funding Bill, 2024, which merges the Higher Education Loans Board, the Universities Fund, the TVET Funding Board and the Kenya Universities and Colleges Central Placement Service (KUCCPS) into a single authority to streamline student placement, loans, scholarships and career guidance.
• The Cabinet approved a Ksh4.7 trillion 2026/27 budget, with Ksh3.53 trillion in revenue and Ksh.3.46 trillion for recurrent spending. Counties will receive Ksh.495.7 billion. GDP growth is projected at 5.3%, prioritising education, health, infrastructure, and reforms.

Over Half of NSE Trades Now Done via M-Pesa’s Ziidi Trader Platform

More than half of Monday’s share orders at the Nairobi Securities Exchange (NSE) were processed via Safaricom’s M-Pesa platform, Ziidi Trader, highlighting mobile money’s role in expanding retail investing. 

As reported by the Business Daily, of 14,300 orders, 7,962 were transacted directly through M-Pesa, giving the platform a 55% share of trades, though value was just 2% due to the Ksh500,000 transaction cap. 

The service allows users to buy shares without individual CDS accounts, pooling funds under Kestrel Capital. 

Embedded in the M-Pesa app, Ziidi Trader leverages existing KYC credentials and mobile PINs for trading.

The platform aims to boost participation from retail investors, including small-scale traders, replicating the success Safaricom had with its Ziidi Money Market Fund.

‍Money254.co.ke has written a detailed article on how one can trade shares on the platform here.\

Govt to Give Private Investors Board Seats at KenGen and Kenya-Re

President William Ruto has announced plans to grant private investors board representation in state-linked firms as part of corporate governance and capital markets reforms aimed at attracting private capital. 

Speaking at the launch of Safaricom’s Ziidi Trader App, Ruto said companies such as Kenya Pipeline, KenGen and Kenya Re will allow private shareholders to nominate directors in proportion to their ownership.

As reported by Capital Business, Ruto said the move will curb politically driven appointments that have undermined accountability and investor confidence. 

The reforms also seek to deepen capital markets and strengthen governance. 

Ruto added that the National Infrastructure Fund and Sovereign Wealth Fund will be shielded from political influence, with a mandatory five-year cooling-off period for former public officials before board appointments.

Govt Proposes Two-Pot Pension System to Allow Early Access to Retirement Savings

According to Bloomberg, the government is considering allowing workers early access to part of their pension savings under a proposed two-pot retirement system aimed at boosting uptake of retirement products.

In a notice seeking public comments, the Retirement Benefits Authority said the plan would let members withdraw a portion of savings for short-term financial needs, attracting more workers, especially in the informal sector.

 Kenya is following countries like South Africa, where a similar policy introduced in 2023 saw about Ksh425 billion withdrawn by mid-2025. Kenya’s pension assets stood at Ksh2.53 trillion ($19.6 billion) in June 2025, largely invested in government securities. 

Other proposals include tax-free death benefits, removal of VAT and excise duties on fund managers, quarterly reporting, and stricter vetting of senior managers.

Sitoyo Lopokoiyit to Exit Safaricom as M-PESA Africa MD

Sitoyo Lopokoiyit, Managing Director of M-Pesa Africa, will leave Safaricom on March 31, 2026 to take up a new role outside the Vodacom Group. 

As reported by the Star, he has led M-Pesa Africa since April 2021, steering its expansion to eight African markets and serving over 60 million customers and 5 million businesses. 

During his tenure, M-PESA evolved from a peer-to-peer transfer service into a full fintech ecosystem offering payments, savings, credit, merchant services, and global interoperable payments. 

Lopokoiyit joined Safaricom in 2011 as Head of M-Pesa Strategy and held senior roles across Safaricom and Vodacom, including in Tanzania. 

He also helped pioneer the agent aggregator model and secured partnerships with Visa, PayPal, Microsoft, Huawei, and Ant Financial, elevating Africa’s fintech profile.

CBK Cuts Benchmark Rate to 8.75% to Spur Private Sector Lending

The Central Bank of Kenya (CBK) has cut its benchmark lending rate to 8.75% from 9.00%, marking the 10th consecutive reduction aimed at boosting private sector lending. 

As reported by CNBC Africa, five of six economists in a Reuters poll had predicted the move, though bankers had urged a pause to allow earlier cuts to take full effect.

The reduction has been credited to the performance of the economy. Inflation eased to 4.4% in January from 4.5% in December, remaining within the 2.5%–7.5% target range.

The economy has been expanding at about 5% annually, with growth projected at 5.5% this year and 5.6% in 2027, up from an estimated 5.0% last year. 

The current account deficit is forecast at 2.2% of GDP in 2026 and 2027.

Aviation Workers Issue 7-Day Strike Notice, Threatening Disruption at  Airports

According to Reuters, aviation workers have issued a seven-day strike notice, threatening to disrupt operations at airports nationwide, including Nairobi’s Jomo Kenyatta International Airport. 

In a February 9 letter, the Kenya Aviation Workers Union said all unionisable employees at the Kenya Civil Aviation Authority (KCAA) would down tools after the notice period lapses.

 The union cites failure to conclude a collective bargaining agreement and the continued placement of staff on temporary contracts for roles it considers permanent. 

KCAA said it is engaging the union to resolve the dispute amicably and confirmed that operations remain normal for now.

Britam Appoints Evah Kimani as CEO of its Microinsurance Business 

Britam has appointed Evah Kimani as Chief Executive Officer of Britam Connect, its microinsurance business. 

Evah brings over 15 years’ experience in ICT, digital transformation, partnerships, and product innovation across telecoms, ICT, and financial services. 

Since joining Britam, she has led the company’s digital transformation, founded its innovation hub BetaLab, and developed the Digital & Direct Channels Strategy, enhancing customer-centric solutions and partnerships. 

Britam is seeking to grow its micro insurance business that is already dominated by companies such as Turaco, which has presence in Kenya, Uganda, Nigeria, Ghana and Zambia.

SACCO Dividend Updates

The Kenya National Police DT SACCO has announced a dividend of members’ share capital at 17% and interest rate for members’ deposits at 11%

‍Read the full lists of SACCOs that have announced their returns for investors.