Thousands Lose Ksh10B After Church Sells Them Land

Hello and welcome to the Money News Roundup Newsletter, where we are covering thousands of Kenyans who lost billions after buying parcels of land marketed to them through their church, the top six banks failing CBK’s stress test, and Governor Sakaja’s Ksh50 billion deal with a Chinese company.

Holy Scam: The Loss of Ksh10 Billion by Church Faithfuls

Thousands of congregants at the Deliverance Church in Kasarani, Nairobi, are counting their losses after title deeds they hold for land in Ruiru were declared worthless.

A report by Daily Nation on Monday indicated that in 2014, the church’s leaders marketed 500 acres in Ruiru, Kiambu County, with the cost of a 50x100 plot ranging between Ksh2.5 million and Ksh4.4 million.

The property, christened Imani Estate, was sold by the church through a company named Ukombozi Holdings Limited, which presented itself as the legal owner of the land, when in reality, it only acted as a proxy.

On July 10, Justice Ogutu ordered the Chief Land Registrar to revoke and cancel all title deeds arising from the parcel, and a subsequent Gazette notice was issued by the government on August 15.

“Notice is given to all the affected persons to surrender all the titles resulting from the illegal subdivision of the said piece of land to the office of the Chief Land Registrar within ninety days from the date of the said court decree, failure to which all the titles resulting from the subdivision of L.R. No.11261/76 shall be deemed to be cancelled and revoked as per the court order,” P.M. Ng’ang’a, Registrar of Titles, said through Gazette Notice Number 11373 issued on August 15, 2025.

From Victims: One victim, identified as Kamau, told Nation that he bought two plots valued at Ksh9 million and put up a maisonette worth Ksh34 million. All that now risks being demolished.

Another victim, Mbugua, bought a parcel at Ksh2.5 million and constructed a Ksh9 million home through a Sacco loan, and now his property is threatened.

Wanjiku, on the other hand, paid Ksh3 million for a parcel whose lease has now been cancelled.

Catch Up Quick: Earlier this month, reports emerged that banks risked losing millions of shillings after sophisticated land fraud schemes manufactured fake but realistic-looking titles used to obtain bank loans. In one case, Equity Bank, Co-operative Bank, and NCBA Bank were defrauded of Ksh466 million over a half-acre plot in Dagoretti after advancing loans, only to later discover the documents were not authentic.

Kenya’s Biggest Banks Face Ksh190bn Risk if Top Borrowers Default – CBK

Kenya’s six largest banks would require at least Ksh190.4 billion in fresh capital if their top three borrowers defaulted, according to a stress test by the Central Bank of Kenya (CBK), Business Daily reports. The test showed the six tier I lenders carried 86.3 percent of the industry’s exposure, underlining their vulnerability to corporate defaults. In total, 19 banks — half of the sector — would need to raise Ksh220.7 billion in new capital to stay compliant. The CBK did not name the lenders, but tier I banks include KCB, Equity, Co-operative, NCBA, Absa, Stanbic, I&M, Standard Chartered, and DTB.

Many large banks’ loan books are concentrated among a few corporates in transport, energy, real estate, and manufacturing. While banks prefer big clients for deposits and fees, defaults have been rising, with cases like Multiple Hauliers, Proctor & Allan, and Transcentury exposing collection challenges. Even though most corporate loans are well-secured, recoveries are often delayed by lengthy legal battles. The regulator has urged banks to study their top borrowers more closely to reduce concentration risks.

Sakaja Signs Ksh50B Deal With Chinese Firm for Dandora Waste-to-Energy Plant

Nairobi Governor Johnson Sakaja has signed a Ksh50 billion Project Development Agreement with the China National Electric Engineering Company (CNEEC) and the Ministry of Energy to advance the Dandora waste-to-energy plant, Kenyans.co.ke reports. The 45MW project is now at an advanced stage of finalising a Power Purchase Agreement, a milestone Sakaja hailed as a breakthrough that previous administrations failed to deliver. He said the initiative will create green jobs for Nairobi’s youth while tackling the city’s long-standing garbage problem.

Once operational, the plant will generate electricity from waste while promoting environmental sustainability. Sakaja added that the 4,000 Green Army workers recently employed on permanent terms will support the project, while the soon-to-be-established Green Nairobi Company Limited will modernise waste collection and disposal, positioning Nairobi as a leader in innovative waste management solutions in Africa.

Microinsurers Double Premium Collections to Ksh1.06B in Six Months

Microinsurers in Kenya collected Ksh1.06 billion in premiums in the half year ended June 2025, more than double the Ksh521.24 million raised in the first three months of the year, Business Daily reports. The growth highlights the rising appetite for affordable, low-value insurance products targeting underserved populations, especially those in the informal economy. The Insurance Regulatory Authority (IRA), which is releasing separate disclosures on microinsurance for the first time, shows there are now six licensed providers—APA, Birdview, Britam, CIC, Star Discover, and Turaco Microinsurance.

General micro-insurance accounted for 97 percent of the premiums, with life and bundled products making up the rest. Uptake has been driven by health, last expense, agriculture, and small business covers, largely distributed through digital and mobile money channels. Demand has been strongest in health and funeral insurance, while agriculture insurance is growing with government and donor subsidies. The IRA has urged insurers to simplify policies, invest in technology, and build trust through faster onboarding and claims settlement to strengthen financial inclusion and raise insurance penetration beyond the current 2.43 percent.

RUPHA Directs Private Hospitals to Charge SHA Patients Cash After Delayed Settlements

Private hospitals across the country will now require cash payments from patients under the Social Health Authority (SHA), following a directive by the Rural & Urban Private Hospitals Association of Kenya (RUPHA), Citizen Digital reports. The association said the move, effective Monday, September 22, was necessitated by delayed and unsettled payments from SHA that have made it unsustainable to continue offering services on credit. “Effective today, all healthcare services (unless otherwise stated) at this facility for Social Health Authority (SHA) beneficiaries will be provided on a cash basis,” read part of the notice.

RUPHA, which represents private hospitals nationwide, said the decision was critical to keep facilities running, ensure essential supplies remain available, and staff continue serving patients. “We regret the inconvenience this may cause and assure you that this action is driven by our commitment to ensure that hospitals remain open, essential supplies and equipment are available, and our staff can continue to serve you with the highest standards of care,” the notice added. Healthcare providers have raised concerns about delayed claim processing since SHA replaced the National Health Insurance Fund (NHIF) in October 2024.

Engineer Awarded Ksh1M After Being Fired via Text Message

An engineer has been awarded Ksh1 million in damages after the Employment and Labour Relations Court ruled that his dismissal through a text message was unlawful, Business Daily reports. Justice Bernard Manani found that Concordia Building & Civil Engineering Co Ltd failed to comply with the Employment Act in the termination of Mr Michael Njogu’s contract in 2020. The court noted that the company neither gave him reasons for dismissal nor allowed him a fair hearing, as required under Section 41 of the law.

Mr Njogu told the court he received a text message on September 3, 2020, informing him of his termination while working as a site engineer in Garissa. The company denied sending the message and argued that the contract had either expired or was terminated at the request of a client citing alleged defiance, but the judge found these explanations contradictory and unsupported by evidence. The court ruled that the dismissal was unfair, ordering the company to compensate Njogu for unlawful termination and unpaid salaries.

High Court Upholds Revocation of Wheelbarrow Patent Over Lack of Novelty

The High Court has upheld a tribunal’s decision to revoke a patent claimed by Mr Suhash Ratilal Shah for a wheelbarrow wheel invention, ruling that it lacked novelty, Business Daily reports. Justice Hellene Namisi said the Industrial Property Tribunal was right to find that Patent No. KE 861 was invalidly granted since the claims were not subjected to proper substantive examination and prior art already disclosed similar inventions.

The case was triggered after Metro-PolyKenya Limited, based in Eldoret, challenged the patent following a cease and desist notice served by Mr Shah. The tribunal concluded in 2021 that the patent was not valid, a decision now affirmed by the High Court. The judge ruled that amendments to Shah’s claims should have been re-examined under the law, adding that the procedural lapse “goes to the heart of the patent system’s integrity.”

Borrowers Cut Use of Household Items as Loan Collateral Amid Rising Defaults

Borrowers are increasingly shying away from using household items and motor vehicles as collateral for loans, pointing to a slowdown in low-value debt uptake, Business Daily reports. Data from the Business Registration Services (BRS) shows that the use of fridges, televisions, and furniture as collateral fell by 19.5 and 32.9 percent respectively in the year ended June 30, while vehicles used as loan security dropped by 3.09 percent to 65,957. In total, the number of such items pledged dipped by 14.4 percent to 132,374. The shift comes as banks cut household lending, with personal and household loans contracting to a three-year low of Ksh943.84 billion last year from Ksh1.08 trillion in 2023.

The decline reflects lenders’ heightened caution amid rising defaults, which climbed to Ksh100.97 billion from Ksh92.03 billion the previous year. At the same time, borrowers increasingly turned to livestock and securities—such as shares and bonds—as collateral, with uptake in this category surging 53.6 percent to 37,931. Notably, the number of securities used more than doubled to 14,245, while livestock pledges rose to 23,686, underlining their growing importance as convenient and accessible collateral, particularly in rural areas.

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