Furore as Govt Reinstates KCSE, KPSEA, & KJSEA Exam Fees

Hello Moneymakers, Kubasu here. In this Newsletter, we cover the national exam fees return, the government's plan to sell its stake in Safaricom, and the MP's order to deposit Ksh3 million in an ongoing court case.

Furore Over Exam Fees

A day after Treasury CS John Mbadi announced that national examination fees would be reinstated in 2025, parents and leaders have castigated the move, arguing that it negates the goal of offering free education.

In an interview carried by Daily Nation, Mbadi noted that the new fee would cover Kenya Primary School Education Assessment (KPSEA), Kenya Junior School Education Assessment (KJSEA), and Kenya Certificate of Secondary Education (KCSE). He further explained that only needy students will be eligible for a subsidy.

What Mbadi is Saying: "We have to review the course in the sense that we must ask ourselves, 'Why should we pay examination fees for all students?' If your child is learning in a private school where you are paying Ksh300,000 or Ksh1 million in a year—honestly, can't you pay Ksh5,000 for exams? Why should you force Kenyan taxpayers to pay examination fees for your child?"

Yes, But: Mbadi explained that this year no fee will be charged since the budget will factor in the examinations. "There is a budget in 2024/2025 which is largely going to cater to the examinations which will be done in October and November. In the event there will be inadequate funding in that examination, there will be a procedure for providing for that money. So there should be no worry, the parents should not panic, the exams will be done," he stated.

Lamentations: Kakamega Senator Boni Khalwale cautioned that the return of exam fees will lead to a spike in school dropouts. "We are now being told that our children who are supposed to sit for national exams—the government has overturned the free examination policy. Now the President says that starting next year, parents should pay for examination fees. My brother, President William Ruto, listen to me, don’t go down that road. Poor people will drop out of school if they are required to pay exam fees."

Kaiti MP Joshua Kimilu corroborated with Khalwale, noting, "We have seen that exams allocation has been scrapped from the budget. That budget should be returned."

"Things are going down by the day. 'Why would government pay exam fee for all students?' CS asks. Bad times ahead," a parent posed.

The Numbers: More than 3.4 million students are expected to sit for the exams: 1.3 million (KPSEA), 1.2 million (KJSEA), and 960,000 (KCSE). The state previously allocated Ksh5 billion to cater to national exams annually.

Catch Up Quick: Former President Uhuru Kenyatta abolished national exam fees in 2015 for public schools and in 2017 for private, in an effort to boost the 100% transition policy.

Govt to Sell Stake in Safaricom

A report by Business Daily has indicated that the government is planning to offload a significant portion of its shares in Safaricom by June next year, aiming to generate most of the Sh149 billion expected from the sale of State-owned enterprises.

According to Treasury Cabinet Secretary John Mbadi, Safaricom stands out as the only high-value asset capable of helping the government raise substantial revenue in a financial year where no new taxes were introduced in the Finance Bill.

MP Ordered to Deposit Ksh3M in Car Debt Dispute

Lamu West MP Stanley Muthama has been directed by the High Court to deposit Ksh3 million as security in a case involving a Ksh7.1 million vehicle debt. The dispute arises from a 2016 deal where Muthama and his company, Stansha Limited, bought a truck from businesswoman Yvonne Njoki Njiru’s Newday Motors but failed to complete the payment. The lower court had ruled in Njiru’s favor, citing lack of proof for Muthama’s defense.

While the High Court allowed Muthama’s appeal—where he argues he should not be held personally liable for a corporate debt—it still ordered the deposit to safeguard compliance with any future rulings. The case underscores growing concerns over personal versus corporate responsibility in business transactions. Read more at Business Daily.

Uganda Signs Deal to Extend SGR to Uganda

Uganda has signed a Ksh103 billion ($800 million) financing deal with the Islamic Development Bank to construct its long-awaited Standard Gauge Railway (SGR) line from Malaba to Kampala, a key move that will finally link Uganda’s capital to Kenya’s SGR and the port of Mombasa, People Daily reported. This renewed commitment comes after years of delay and is expected to revive regional integration efforts and strengthen East Africa’s trade corridor.

Kenya, which has faced challenges in justifying the cost of its SGR without regional connectivity, now stands to benefit significantly. The development could drive more cargo through Mombasa from Uganda, Rwanda, and the DRC, boosting activity in logistics, warehousing, and customs. It may also create jobs as Kenya eyes restarting its own SGR extension to meet Uganda halfway.

PCEA Sacco Wins Tribunal Order to Recover Sh95 Million Stuck in Kuscco

The PCEA Ruiru Co-operative Sacco has obtained a tribunal enforcement order to recover over Ksh95 million in fixed deposits that have been locked up in the Kenya Union of Savings & Credit Co-operatives Ltd (Kuscco).

According to a report by Business Daily, the Sacco, affiliated with the Presbyterian Church of East Africa (PCEA), moved to the Cooperatives Tribunal after repeated attempts to access its matured deposits were unsuccessful.

Kuscco, once a leading umbrella body for Saccos in Kenya, is currently embroiled in a major financial scandal involving a massive fraud that has placed billions of shillings in member deposits at risk. The ruling is a significant win for the church-linked Sacco, which had been among several institutions seeking to retrieve their funds from the embattled union.

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