Audit Exposes Ksh127M Mysteriously Paid to Private Firms From eCitizen in 1 Day

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering the controversy regarding eCitizen and how SACCOS have disappeared with Ksh1.3 billion KUSCCO loans

Auditor General Flags Ksh127M Payment to Private Firms from eCitizen 

A report by the Auditor General Nancy Gathungu has questioned how Ksh127 million was transferred from eCitizen to the private accounts of 4 firms.

As detailed in the report presented in Parliament, the payments were made on 25 January 2024. Notably, the auditor stated that no documentation was provided to justify why the payments were made.

“Collections paid using Paybill 222222 were expected to be auto-transferred to the Settlement Account held at KCB Bank. However, review of the 222222 Paybill Statement revealed that on 25 January 2024, there were four transactions made from the Paybill Account to private entities instead of the designated Settlement Account. 

“The four transactions amounted to Ksh. 127,850,950. Approval and documentation to support these transfers of money directly from the Paybill to the private entities were not provided for audit,” read the report in part.

Other issues highlighted are that Kenyans have been overcharged for services rendered on the platform. Kenyans pay a convenience fee of Ksh50 for transactions made on the platform.

“Gazette Notice No. 9290 of 2014, dated 23 December 2014, required a Nominal Administrative Fee to be charged per transaction, which was to be a prorated percentage of the amounts paid; however, during the period prior to 23 January 2023, the National Treasury did not establish a prorating band. 

“Gazette Notice. In this regard, Ksh1,807,946,257 and USD3,333,989 were irregularly collected from the public,” read the statement in part.

Read more on the flaws identified on eCitizen here. 

‍KUSCCO Goes After 150 SACCOS to Recover Ksh1.3 Billion Loan

Kenya Union of Savings and Credit Co-operatives (KUSCCO) has written to the Commissioner of Cooperative Development to seek help in tracing 150 SACCOS that took loans from the union.

As reported in the Business Daily, the SACCOS have gone dormant or are no longer in operation. The 150 SACCOS registered across the country are reported to have taken loans amounting to Ksh1.3 billion.

In its request to the government, the union is seeking to establish whether the SACCOs existed in the first place or whether the loans were given to ghost saccos.

Some of the top defaulters who cannot be traced are Nitunze (Ksh320 million), Mucumewo (Ksh90.02 million), Thika Tea (Ksh87.19 million), Sukari (Ksh78.6 million), and Soko Sacco (Ksh38.19 million).

Additionally, KUSCCO has begun auctioning houses after borrowers defaulted on their mortgages. The houses under auction are located in Kitengela, Kiserian, Kajiado, Kisumu, Thika, Machakos, Webuye, Bungoma, Lukenya, and Syokimau.

Trump Govt to Introduce Ksh1.9M Bond Requirement for Some Visa Applicants

President Donald Trump’s administration has announced plans to introduce a bond requirement for some visa applicants travelling to the US for business and tourism.

As reported in the People Daily, the new requirement will target foreigners from countries that have a high rate of visa overstays. The move is aimed at ensuring foreigners leave the US when their visa ends.

While the affected countries are yet to be identified, the State Department is expected to determine the list based on data on visa overstays.

Kenya is among the countries that have been reported to have overstays in the US, especially for those travelling for studies.

‍US to Review Kenya’s Non-NATO Ally Status

The US is set to review Kenya’s Non-NATO Ally status following an amendment tabled in the US Congress by US Senator James Risch.

In the proposals, the Senator is seeking to assess Kenya's foreign and diplomatic policies, such as its alignment with the United States and its engagements with China, Russia, and Iran. 

The review will cover the assessment of links between Kenyan officials and armed groups such as the Rapid Support Forces (RSF).

Kenya was accorded the non-NATO ally status in 2024 during President William Ruto’s visit to the US. Read more from Citizen Digital here.

Cost of Construction Increases - KNBS Report 

The cost of construction in Kenya has been reported to have increased in the 2nd Quarter of 2025.

As detailed in the report by the People Daily, the rise is attributed to an increase in the cost of construction materials such as cement and concrete.

These additional costs are expected to pile pressure on Kenyans undertaking development projects such as house constructions as well as the government’s affordable housing programme.

"This rise was mainly attributed to the increase in the materials indices, which rose from 125.90 to 127.39. Notable indices that rose were those of Concrete & Asphalts (2.86 per cent), Cement (2.63 per cent), and Steel & Reinforcement Bars (1.52 per cent)," the KNBS report was quoted.