Cabinet Decisions on Fuel Levy Securitization & New Health Authority

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering the latest decisions by the Cabinet on road projects and the formation of the Quality Healthcare and Patient Safety Authority.

Latest Cabinet Decisions on Stalled Road Projects and New Health Authority

As reported by Capital News, the Cabinet has approved payment of close to Ksh60 billion to road contractors using loans that were taken through the securitization of the fuel levy.

Already, Ksh64 billion (40% of the loan raised) was paid to contractors. This new payment will bring the total disbursement to 80% of the loans taken under the securitization plan.

According to the Cabinet, the decision is expected to see contractors resume road projects that had stalled.

“To deepen this novel model in infrastructure development, the Cabinet approved an additional payment of up to 40%, bringing the total settlement to 80%, on the condition that contractors extend the final payment deadline by another 120 days,” read the statement in part.

“These measures have resolved long-standing financial obligations, unlocked stalled projects, improved contractor cash flow, and ensured continuity in infrastructure development nationwide.”

‍Formation of New Health Authority - The Cabinet also approved the formation of the Quality Healthcare and Patient Safety Authority. The new body will be established through the proposed Quality Healthcare and Patient Safety Bill, 2025.

The independent authority will be mandated with enforcing standards in hospitals and protect the rights of patients. Read more on the coverage here.

‍CBK Makes U-Turn on Bank Loan Interest Rates 

The Central Bank of Kenya (CBK) has dropped plans to control lending rates using its benchmark rate, favoring a model preferred by commercial banks that relies on the interbank rate. 

As reported in the Business Daily, this rate reflects the cost of short-term borrowing between banks and is seen as a key indicator of market liquidity. CBK had initially proposed linking lending rates to its benchmark to improve transparency for borrowers, but banks pushed back, arguing for the current model. 

Under the revised approach, banks will set lending rates based on the interbank rate plus a premium (K) covering operating costs, risk, and shareholder returns. 

New Tactic Scammers Are Using to Target Employees Through Work Emails

A new report by Kaspersky has revealed that scammers are using work emails to commit fraud and steal data belonging to employees.

In the new trick, scammers impersonate HR email addresses, and they then send emails to employees asking them to review the latest HR handbook or company policies.

Once the employees click on it, they are redirected to other sites or pages where they are required to scan a QR code or enter their details. In the process, malware apps are downloaded onto the devices.

To some extent, payment fraud is committed, resulting in financial losses for the employees. Find out more about this report from the Business Daily here. 

‍EPRA Approves Construction of 10 LPG Stations for Vehicles 

In the People Daily, reports indicate that the Energy and Petroleum Regulatory Authority (EPRA) has approved the construction of 10 new autogas stations across Kenya, the highest number in any six-month period. 

This move highlights growing interest in Liquefied Petroleum Gas (LPG) as a cheaper and cleaner alternative to petrol and diesel. Rising fuel costs have driven many motorists to convert their vehicles to run on LPG. 

Conversion costs range between Ksh70,000 and Ksh100,000. Major cities like Nairobi, Nakuru, and Mombasa are leading in adoption.

NTSA Unveils Vehicle Duty and Records Update for Car Owners

As in the Standard, the National Transport and Safety Authority (NTSA) has instructed all vehicle and motorcycle owners to update their duty status and records, following concerns that some may be operating without proper tax clearance. 

The update will confirm if duty was paid at importation, in line with customs regulations enforced by the Kenya Revenue Authority (KRA). Owners must submit a stamped update letter with contact details, a copy of their ID, original logbook, KRA entry, and duty receipt.

Verification will take place at NTSA offices and is expected to be completed within seven working days. 

‍Cabinet Approves Sale of Kenya Pipeline Shares

As reported by Citizen Digital, the Cabinet, on Tuesday, approved the listing of Kenya Pipeline Company on the Nairobi Securities Exchange (NSE).

The new move will see the government implement its privatization plan, allowing Kenyans and other investors to buy shares of the company tasked with transporting petroleum products from Mombasa to different parts of the country through a pipeline network.

Cabinet explained that the move would make the company efficient and optimize its potential.

According to the plan, the listing will be done before the end of August.