Govt Officials Spend Ksh 2.9B on Overseas Trainings & Meetings Despite Austerity Order

Hello and welcome to the Money News Roundup, where we are covering the government's expenditure on foreign travel and the State Department of Housing exceeding the Housing Levy target.

Govt Officials Spend Ksh 2.9B on Overseas Trainings & Meetings Despite Austerity Order

State officials spent Ksh2.9 billion on foreign trips in the year to June 2025, with Geneva, New York, and Dubai emerging as top destinations, further underscoring the challenge of enforcing austerity on non-essential travel. 

For instance, 40 officials from the State Department of Labour went to the International Labour Organization’s conference in Geneva, which alone cost Ksh109.78 million. 

As in the Business Daily, Total spending on Switzerland trips reached Ksh147 million, with Ksh80.7 million spent by delegations that went to New York and Ksh56 million for Dubai visits. 

The spending was recorded despite a government circular issued in October 2023 by Head of Public Service Felix Koskei suspending non-essential foreign travel and limiting delegation sizes. 

The Controller of Budget attributes the redundant travel expenses to a lack of coordination across government agencies. 

Therefore, she has recommended establishing a centralized pre-approval unit to curb duplication, enforce delegation limits, and ensure that foreign travel is strictly necessary and fiscally responsible. 

"A Circular Ref: OP/CAB.308/018 dated 2nd October, 2023 from the Chief of Staff and Head of the Public Service, suspended non-essential foreign travel and provided further directives on essential foreign travel that included a prescription on delegation sizes, application procedure and capping of travel period to seven (7) days inclusive of travel dates. 

"The categories of official foreign travels suspended by the Circular included benchmarking and study visits; trainings and related capacity building initiatives; conferences and meetings of general participation; research, academic meetings and symposia; side events, showcase events and exhibitions; and caucus, association meetings and events," read the report in part.

Taxpayers to Shoulder Ksh25.3B Penalties Over Govt’s Unpaid Bills 

Kenyans will bear a Ksh25.3 billion burden in penalties due to the delayed payments of the national government's pending bills.

According to Controller of Budget Margaret Nyakang’o pending bills rose by Ksh.9 billion in a year.

The Ministry of Roads and Transport leads with Ksh21.3 billion in penalties on top of Ksh121.8 billion owed to contractors. 

As reported by Citizen Digital, other affected ministries include Energy, Health, and Water, with institutions like KEMSA, KEMRI, KenGen, and KeRRA facing billions in unpaid bills. 

Therefore, the CoB, Nyakang’o urged the Treasury to speed up verification and payment of eligible bills to prevent further economic damage and support affected businesses.

Govt Exceeds Housing Levy Collection Target by Ksh10B

According to the Business Daily, the government collected Ksh73.2 billion from the Housing Levy in the 2024/25 financial year, exceeding its Ksh63.2 billion target by Ksh10 billion.

The collections are attributed to stricter enforcement of the 1.5% monthly salary deductions from employees, matched by employers. 

Despite the high collections, fund utilization remains slow due to the phased implementation of affordable housing projects. Consequently, nearly half of the funds, over Ksh30 billion, remain unspent and have been temporarily invested in Treasury bills. 

 The Affordable Housing Board defends the investment move, citing it ensures funds remain secure and productive while awaiting implementation of housing projects.

Insurance Payouts for Motor Vehicle Theft & Accident Hits Ksh44 Billion

In 2024, insurers paid a record Ksh44.83 billion in motor vehicle claims, a 37.1% rise from the previous year, due to increased accidents, thefts, and fraudulent claims. 

According to the Business Daily, compensation for own damage topped Ksh15.97 billion, while accidental damage claims doubled to Ksh8.65 billion.

Payouts for personal injuries and fatalities rose sharply, pushing insurers to rely on investment income as claims outpaced premium growth, which rose just 1.6% to Ksh55.98 billion. 

The surge in costs has triggered premium hikes, tighter underwriting, and refusal to cover older or high-risk vehicles. In 2022, a High Court ruling allowed insurers to raise premiums on older cars, dismissing a challenge by the Kenya Human Rights Commission (KHRC) 

Insurers now face the challenge of balancing rising risks with customer protection. Already, some companies have adopted innovations such as telematics to adjust premium rates based on policyholders’ driving habits.

NSE All‑Share Index Posts Best Year Ever as Foreign Investors Return

The Nairobi Securities Exchange (NSE) All‑Share Index closed at 178.04 points on September 3, 2025, a 44.19% year‑to‑date gain, its strongest performance since inception in 2008, surpassing the 2013 rally of 42.21%.

As reported by the Kenyan Wall Street, Market capitalization climbed by Ksh820 billion to Ksh2.76 trillion, marking back‑to‑back gains above 30% for the first time since 2012–2013 

In August, foreign investors staged a comeback with a net inflow of Ksh1.65 billion—the most in a month since August 2021—following a July outflow of Ksh524.1 million.