Govt Responds to Reported Ksh9 Billion Loss on eCitizen

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering the government's response to the loss of funds on the eCitizen platform and the proposed CBK rules for lenders.

‍Govt Responds After Auditor General’s Report on eCitizen 

Treasury PS Chris Kiptoo has denied reports that close to Ksh9 billion has been lost on the eCitizen platform.

As reported on Citizen Digital, Kiptoo stated no money had been lost since 2023 following the contractual agreements that were made with the system vendors. He also clarified that the government had control of the eCitizen system, given that the Auditor General has raised concerns about the platform's ownership.

While appearing before the National Assembly’s Public Accounts Committee, the PS also maintained that the report was not presented to the government for clarification before the final report was drafted.

However, as reported by the Business Daily, the team from the Auditor General’s office refuted the assertions by the PS, even claiming that he was at a meeting where the report was presented.

"Before we finalized the audit report, we had an exit meeting where PS Dr Kiptoo attended. We have the management letter, responses, and I can even go on record here to say that some responses that have been submitted were not submitted to us.

“There are some responses that he (Kiptoo) has provided here that are contradicting the submission he made to us,” People Daily quoted the officials from the auditor’s office.

In the March 2025 audit report for the financial year ending June 30, 2024, Auditor‑General Nancy Gathungu flagged Ksh9.6 billion in questionable transactions and oversight failures involving financial service providers and government ministries using the eCitizen platform.

‍Teachers Warn of Strike Over Govt Plan to Scrap Medical Cover

Kenya Union of Post-Primary Education Teachers (KUPPET) has warned the government over plans to scrap their comprehensive medical insurance under Minet and move them to the Social Health Authority (SHA).

KUPPET Secretary General Akelo Misori expressed reservations as to whether SHA would provide health benefits that teachers are enjoying under the current plan.

As reported in the People Daily, the union stated that they would take to the streets if the plans by the Ministry of Education are actualized.

"If the government insists on rolling out this plan without our input, we are prepared to take to the streets. Consider this a warning. Teachers are the largest contributors to the national tax base, yet the government is punishing them by abolishing their medical scheme while safeguarding those of other sectors," Misori stated.

CBK Proposes New Rules for Digital Lenders 

The Central Bank of Kenya, through the (Non-Deposit Taking Credit Providers) Regulations, 2025, has proposed new rules for non-deposit credit-taking lenders, which include digital lenders.

In the latest rules, all microfinances that do not take deposits and offer loans will be required to have policies that outline the requirements borrowers have to meet to be eligible for loans.

As covered by the Business Daily, the policy of the lenders will also have to detail loan limits per borrower, interest rates, and all charges related to the loan facilities that they offer to Kenyans.

Additionally, the new rules set out guidelines for the protection of borrowers’ data. For instance, non-deposit-taking credit providers will not be allowed to make unauthorized or unsolicited calls or messages to a customer’s phone contacts or other contacts.

Making phone calls to borrowers (in the event of default) at odd hours will also be banned. Equally, the lenders will be banned from taking personal effects of borrowers when recovering loans.

‍Ministry of Education Introduces Two Math Options for Grade 10 

The Ministry of Education has revised the Competency-Based Curriculum (CBC) for senior school learners, making maths compulsory.

Mathematics will now be compulsory, offered as either Core or Essential, based on the learner’s academic pathway. English, Kiswahili (or KSL), and Community Service Learning (CSL) are also mandatory.

The new framework, starting in 2026, targets learners entering Grade 10, the first CBC cohort to transition to senior school.

To support learners’ development, Physical Education and ICT skills will be offered to all learners, though they will not be examined. Read more here.

‍Govt to Buy Ksh20B Shares in Manufacturing Companies 

The government is planning to buy shares worth Ksh20 billion in manufacturing companies.

According to the Business Daily,  President William Ruto ordered Trade CS Lee Kinyanjui to budget for the funds and invest in viable factories.

The upcoming investments will be channeled through the state-owned Kenya Development Corporation (KDC), which provides both debt and equity financing to the private sector.

‍Counties Risk Being Denied Funding in New Plan 

Counties flagged for persistent financial mismanagement may soon face harsh penalties, including suspension of their equitable share, under a new plan being considered by the Senate and National Treasury.

The proposal, supported by Treasury Cabinet Secretary John Mbadi and the Senate County Public Accounts Committee, aims to punish counties that repeatedly violate financial regulations.

Mbadi acknowledged that mismanagement is rampant, citing cases where counties divert funds without explanation, leaving critical bills unpaid.

While backing the sanctions, Mbadi warned of potential disruptions to services in counties, urging a balanced approach to enforcement. Read more here.

President Ruto's Plan to Reduce Taxes on Motorcycles 

President William Ruto has announced plans to reduce taxes on motorcycles to lower costs.

While meeting with boda boda stakeholders, Ruto stated that the aim was to reduce the price of motorcycles from Ksh190,000 to Ksh90,000.

As reported in the Daily Nation, the move is aimed at making the motorcycles affordable for Kenyans who want to venture into the business.

"I will go to Parliament to get rid of taxes, and that will reduce the cost of motorbikes. I want ordinary people to be able to buy motorbikes. The motorbike will no longer be Ksh190,000, it will be Ksh95,000. That is half."