Govt Fines 8 TV Stations As Kenyans Lose Millions to Fraudulent Gambling Scheme 

Hello Moneymakers, Washington here. In this newsletter, we are covering the fining of 8 TV stations for defying the government directive on gambling advertisement after an exposé revealed how Kenyans lost millions to a fraudulent gambling scheme.

Fines Against Watchdog

The Communication Authority of Kenya (CA) has revealed that it has fined 8 broadcasters for running unauthorised gambling programmes.

In a statement dated Monday, May 26, CA noted that the media houses were fined Ksh500,000 each for their continued running of gambling programmes despite the recent ban. However, the 8 stations were not revealed..

“Even with the directives to suspend advertising of all gambling-related content, a review by the Authority in the second week of May 2025 revealed the continued airing of such prohibited content by some broadcasters, in blatant disregard of sector laws and directives.

“Consequently, in line with Section 83A of the Kenya Information and Communications Act, 1998, the Authority instituted a notice to issue a penalty of KShs. 500,000.00 to eight (8) non-compliant broadcasters for airing unlicensed price competition promotions, with a 12-hour ultimatum to cease all non-compliant broadcasts or face additional sanctions, including license revocation,” read the statement in part.

CA was responding to an exposé by NTV - Sacred Swindle, which revealed how a Christian TV station was swindling Kenyans of their hard-earned money through a fraudulent gambling scheme.

In the NTV documentary, it was exposed that the station was making approximately Ksh600,000 per day from the gambling programme.

In the gambling scheme, viewers would be asked to send as small amounts as Ksh20 to win huge cash rewards as high as Ksh50,000. To make the viewers send more money, they would be pitted against other ‘ghost gamblers’ in order to win the lucky prize. 

‍SHA Warns Employers of Ksh2 Million Fines

In a report by the Star, the Social Health Authority (SHA) has warned employers against failing to register their employees for the national health insurance.

SHA noted that some Kenyan employees also risk losing their health cover in cases where employers fail to remit the mandatory contributions.

As a result, employers warned that non-compliant employers faced a fine of Ksh2 million.

Remit monthly contributions on or before the 9th day of each month. Not paying contributions to the Social Health Insurance Fund without a valid reason is an offence,” the authority warned.

“Offenders may face fines up to Ksh2 million or up to three years in prison. Non-compliance can also lead to financial penalties and loss of health services for employees.”

‍KRA Uncovers Scammers Using Kenyans' Identity for Tax Evasion 

The Kenya Revenue Authority (KRA) has uncovered scammers who are using the identity of Kenyans to commit tax fraud.

The Business Daily revealed that the Investigation and Enforcement Unit of KRA uncovered that the scammers were using people’s IDs and KRA PINs to open up shell companies.

Upon registration, the companies are used for money laundering, exposing innocent Kenyans to investigations and tax demands from KRA.

‍Govt Moves to Stabilize Rising Maize Flour Prices

The Ministry of Agriculture has announced plans to release 200,000 bags to millers in a move to stabilize rising maize flour prices.

As reported by Citizen Digital, the maize from the National Strategic Grain Reserve (NSR) will be sold to the millers at a subsidized price of Ksh4,250 per 90kg bag.

The move will help address the shortage in the market, which has seen the prices of maize flour increase in the last few weeks. For instance, between April and May, some brands of maize flour registered an increase of Ksh19.

"To deter stock hoarding, millers allocated the NSR maize are required to make an initial payment for 25% of their total allocation and provide proof of milling and distribution of flour before the full allocation is allowed. They must also submit a maize utilization report before the payment for 75% is accepted,” CS Mutahi Kagwe announced.

‍Aviation Operators Warn on Job Losses Over Finance Bill 2025

Aviation operators have warned that thousands of Kenyans employed in the industry face job cuts should the tax proposals targeting the sector in the Finance Bill 2025 sail through.

As reported by the Daily Nation, the operators warned that the industry would be affected as the bill proposes the imposition of a 16% VAT on the importation of aircraft or spare parts.

Led by Kenya Association of Air Operators (KAAO) Chairman Mbuvi Ngunze, the operators added that Kenya would lose its competitive advantage, further calling on the government to reinstate the tax exemptions.

“Exemptions are not only a good-to-have, but are an essential part of the industry cost structure, as most of the revenues in aviation are not convertible, meaning no offset is possible, thus having a direct impact on cash flow and operating costs,” he stated.