Govt’s Crackdown Against 206,000 Nairobi Landlords, Ex-Employee Loses Ksh35M for Filing Case in Wrong Court

Hello Moneymakers, Kubasu here. In this newsletter, we’re covering Governor Sakaja’s crackdown on 206,000 Nairobi landlords, the Treasury dropping IMF loans in the latest budget, and a former police commission member who lost Ksh35 million after filing a case in the wrong court.

Governor Wages War Against 206,000 Nairobi Landlords

Nairobi Governor Johnson Sakaja has declared that the grace period is over for land rate defaulters across the city.

In a statement released on Sunday, the governor announced that a city-wide crackdown would begin on Monday, May 12.

Why This Matters: According to the governor, many landlords and landowners have persistently refused to settle their land rates, despite being granted a months-long waiver.

Sakaja revealed that only 20% of the city’s landowners—about 50,000 out of 256,000 registered parcels—have been paying land rates, a situation he described as “unsustainable.”

What City Hall Is Saying: “Starting Monday, we will begin full enforcement. That means clamping properties, issuing notices, and initiating legal proceedings against chronic defaulters,” said City Hall Receiver of Revenue, Tiras Njoroge.

He added that the county had finalized preparations for the enforcement operation and would begin rolling it out across all sub-counties this week.

“We understand the economic hardship, which is why the governor extended the waiver. But for some, no window is ever enough. Now we have no choice but to act. We need these funds to provide services like garbage collection, health care, and road maintenance,” he explained. The most recent waiver expired on April 30.

Crackdown Map-Out: Njoroge noted that enforcement teams would start with high-value properties in areas such as Westlands, Upper Hill, Kilimani, and the Industrial Area, before moving to residential estates.

The End Goal: The county government aims to collect over KSh 10 billion in outstanding land rates to boost service delivery.

Catch Up Quick: This comes amid a standoff between governors, including Sakaja, and Kenya Power. The governors accuse the utility company of failing to remit land rates for land where power poles stand, which they say affects county revenue and, by extension, service delivery.

Kenya Power, however, argues that paying the land rates would lead to a 30% increase in electricity costs.

NPSC Member Who Suffered Stroke Loses Ksh 35M Case

The Court of Appeal threw out a petition by Shadrack Mutia Muiu, a former member of the National Police Service Commission (NPSC), seeking Ksh35 million withheld salary after he suffered a stroke, a report by Business Daily indicated.

In the ruling, a 3-judge bench reversed an earlier decision by the Employment Court indicating that the lower court was not suited to determine the case. The Employment and Labour Relations Court had earlier awarded Mutia the money.

"The dispute before the learned Judge (Onesmus Makau) was whether the Dr Muiu, whose terms of employment (which terms include appointment, remuneration and dismissal), were underpinned by the Constitution, could have those terms varied or curtailed, without reference to the Constitution. In our view, the dispute had a constitutional connotation and could not be said to strictly fall under section 12 of the Employment Act," the Court of Appeal ruling indicated.

Kenya Drops IMF Funding in Budget Shift

Kenya has excluded International Monetary Fund (IMF) funding from its upcoming budget starting July, signaling a move to avoid the lender's tough conditions such as tax hikes, job freezes, and spending cuts. According to Business Daily, budget documents tabled in Parliament show zero IMF allocations through 2029—down from Sh135.1 billion received in 2023/24 and Sh50.2 billion initially planned for 2024/25.

Govt Orders Shutdown of 23 TV Stations

The Betting Control and Licensing Board (BCLB) has written to the Director General of the Communications Authority of Kenya (CA), David Mugonyi, demanding the shutdown of 23 TV stations, including Kameme TV, The Standard reports. The stations are accused of violating a 30-day suspension on betting advertisements.

"Following the Board's recent press statement announcing a 30-day suspension of betting advertisements, it has come to our attention that several media outlets continue to run unauthorized betting promotions,” read a letter from BCLB Director Peter Mbugi.

The affected TV stations include Yahweh, JCDH, Swahili, Deliverance, Ngumbao, Aviation, Nyumba Itu, Venus, Michezo, Humble Touch, Massa, Goodwill, Moja One, Repower, Naivera, Happy, Tohanchane, Favour Life, Wave Time, Jawabu, Maajabu, Madhabahu, and Kameme.

Government Leases Out Four Sugar Mills in Sector Revamp Plan

Four sugar millers have been officially leased out under the government's plan to revive the struggling sector. Kibos Sugar and Allied Industries Limited took over Chemelil Sugar, Muhoroni Sugar Factory was handed over to West Valley Sugar Company, West Kenya Sugar Company, under Jaswant Rai, took over Nzoia Sugar, while Busia Sugar Industry assumed control of Sony Sugar.

According to a report by People Daily, the MSMEs Cabinet Secretary, Wycliffe Oparanya, noted that the millers were in a deep financial crisis, having posted losses for years while operating under obsolete machinery.

Govt Pending Bills Hit Ksh245 Billion - Auditor General

Government Ministries, Departments, and Agencies (MDAs) have carried forward Sh245.26 billion in pending bills into the 2024/2025 financial year, according to a report by People Daily citing Auditor-General Nancy Gathungu. The arrears include Sh130.3 billion for MDAs, Sh64.39 billion for donor-funded projects, and Sh50.56 billion in contingent liabilities. The Auditor-General attributed the accumulation to inadequate budgets and delayed project implementation.

As reported by People Daily, the National Treasury appointed a Pending Bills Verification Committee in September 2023 to audit bills dating back to 2005. The committee is tasked with verifying legitimacy and compliance to prevent fraud and misuse of public funds. The report warns that these arrears are rarely factored into new budgets, making it unlikely that the upcoming fiscal year will accommodate both old debts and new programs.