How Chinese National Siphoned Ksh170M From Company Using Fake Board Minutes

Hello and welcome to the Money News Roundup Newsletter, where we are covering the Chinese National who siphoned Ksh170M from a local company using fake documents, the new Mombasa Port expansion to kick off in December, and EABL paying off the bond early.

Foreigner Siphons Ksh170M From Company

Officers from the Banking Fraud Unit of the Directorate of Criminal Investigations (DCI) are investigating a Chinese national who reportedly siphoned Ksh170 million from Weihai Construction, a foreign company operating in Kenya.

A report by Citizen TV indicated that the suspect used fabricated documents to open a new account with a local bank through which the money was channelled in 2020, while the legitimate executives of the company were in China during the pandemic outbreak.

The suspect allegedly continued siphoning the funds until an audit detected the anomaly.

Part of the forged documents included letters of authorization bearing fake signatures and board resolutions listing fictitious board members. Read more.

EABL to Redeem Ksh11 Billion Bond One Year Early

East African Breweries Plc (EABL) will repay its Ksh11 billion corporate bond at the end of this month — a year before its scheduled maturity in October 2026. According to Chief Financial Officer Risper Ohaga, the early redemption aims to lower financing costs, improve liquidity, and extend the company’s debt maturity profile. The bond, issued in October 2021 with a fixed interest rate of 12.25 percent and listed on the Nairobi Securities Exchange, will be redeemed using funds from other borrowings whose details were not disclosed.

EABL’s total borrowings dropped by 15.96 percent to Ksh34.8 billion in the year ending June 2024, from Ksh41.4 billion the previous year, as the brewer moved to reduce its debt load amid high-interest rates and inflation pressures. The company’s repayment decision, reported by Business Daily, reflects its efforts to manage capital efficiently, strengthen liquidity, and improve financial flexibility in a challenging economic environment.

Government to Begin Ksh41 Billion Mombasa Port Expansion in December

The government is set to begin expanding the Port of Mombasa at a cost of Ksh41 billion, with construction expected to start by December, Deputy President Kithure Kindiki has announced. Speaking during the Nyali Constituency Economic Empowerment event in Mombasa County, the DP said the expansion is key to improving efficiency and handling growing cargo volumes. “The President ensured port operations were returned immediately, he was sworn into office. Now it is time to expand the port. The President will be here to launch the expansion, which will be done at a cost of Ksh41 billion,” Kindiki stated.

According to the Kenya Ports Authority, the number of containers handled has grown from 1.4 million to 2 million in recent years, prompting the need for expansion. Prof. Kindiki noted that the government is keen to enhance the port’s efficiency as part of its wider development agenda in the coastal region. Other key projects include the expansion of the Nyali Bridge–Mtwapa–Kilifi Highway, the dualling of the Changamwe–Jomvu–Mazeras–Mariakani Road, and the completion of the Dongo Kundu Bypass. Reported by Citizen Digital.

Half of Saccos Exceed 5% Loan Default Limit as Bad Debt Rises to Ksh70 Billion

More than half of Kenya’s savings and credit co-operatives (saccos) exceeded the recommended 5 percent loan default rate in 2024, pushing bad debts past Ksh70 billion, Business Daily reports. Data from the Sacco Societies Regulatory Authority (Sasra) shows that 167 of 355 licensed saccos remained within the limit, while the rest surpassed it. The rise in defaults increased the industry’s bad loans from Ksh64.06 billion in 2023 to Ksh70.87 billion, forcing saccos to raise loan-loss provisions to Ksh58.61 billion.

Sasra Acting CEO David Sandagi said that despite the rise in defaults, saccos remained more resilient than commercial and microfinance banks, which recorded higher default rates of 17.1 percent and 33.6 percent respectively. He noted that most sacco loans are secured by members’ deposits, providing a cushion against losses, and added that Sasra continues to work with saccos to strengthen loan recovery and maintain financial stability.

Kenyans to Pay Ksh5.24 More Per Unit of Electricity in October

Kenyans will pay Ksh5.24 more per unit of electricity in October following new price adjustments by the Energy and Petroleum Regulatory Authority (EPRA), Kenyans.co.ke reports. The increase is attributed to three key factors: a Ksh3.69 rise per kilowatt-hour (kWh) due to higher fuel energy costs, a Ksh1.53 adjustment for foreign exchange fluctuations, and a Ksh0.0124 levy imposed by the Water Resource Management Authority (WRMA). The new rates, published in the August 9 issue of the Kenya Gazette, apply to all prepay and postpay electricity customers.

This means a household using 30 units of electricity per month will pay about Ksh157 more on their October bill. The total cost will also attract additional charges, including a 16 percent Value Added Tax (VAT), a 5 percent Rural Electrification Programme (REP) levy, and an EPRA levy of 3 cents per unit. The adjustments come amid rising energy production costs and currency pressures, which continue to strain household budgets.

Kenya Cuts Dollar Debt as Treasury Converts SGR Loans to Yuan

Kenya has reduced the share of its dollar-denominated external debt after the Treasury converted three Standard Gauge Railway (SGR) loans from dollars to Chinese yuan, Business Daily reports. The conversion of $3.5 billion (about Ksh850 billion) worth of SGR loans will lower the dollar’s share of external debt to 44 percent, or Ksh2.37 trillion — dropping below 50 percent for the first time in 11 years. This marks a significant decline from 52.7 percent (Ksh2.85 trillion) before the conversion and 62.3 percent (Ksh3.22 trillion) a year earlier.

The move is expected to ease Kenya’s debt repayment burden by saving taxpayers an estimated Ksh27.8 billion annually in interest costs, thanks to lower yuan-based rates compared to expensive floating dollar loans. Treasury officials said the switch also helps reduce exposure to currency and interest rate risks tied to the US dollar. Following the conversion, the yuan’s share of external debt has risen from 12 percent (Ksh648 billion) to 21 percent (Ksh1.13 trillion), reflecting Kenya’s deepening financial ties with China.

Actis and Shapoorji Pallonji Sell Mi Vida Homes to Local Investor Consortium

British private equity firm Actis and its joint venture partner, Shapoorji Pallonji Kenya, have agreed to sell property developer Mi Vida Homes to a consortium of local investors led by the company’s management, Business Daily reports. Mi Vida CEO Samuel Kariuki said the group is acquiring the entire share capital of Mi Vida’s holding company, which was formed in 2018 as a joint venture between Actis and Shapoorji Pallonji. The developer has built mid-market and affordable housing at Garden City Mall and expanded to other sites in Riruta and Ruaka.

Kariuki noted that the buyout, financed through a mix of equity and debt, aligns with Actis’ typical seven- to nine-year investment cycle. He added that both Actis and Shapoorji Pallonji would fully exit the company, marking a rare management-led takeover in Kenya’s property sector. The transaction reflects growing confidence among local institutional investors in real estate and signals a new phase of locally driven growth for Mi Vida.

Court of Appeal Overturns Order for Haco to Refund Tycoon Ksh15 Million

The Court of Appeal has overturned a High Court ruling that had directed Haco Industries to refund Mombasa tycoon Ashok Doshi Ksh15 million, which he paid 24 years ago in exchange for non-prosecution over counterfeit Bic pens. A three-judge bench — Justices Francis Tuiyott, Imaana Laibuta, and Grace Ngenye-Macharia — ruled that Doshi failed to prove that Haco and its French partner, Société Bic, breached their 2002 settlement agreement. The judges found that the agreement only covered counterfeit products seized in 1996, not those confiscated in 2002, and noted inconsistencies in Doshi’s claim that the later batch of pens were returns from the earlier seizure.

The dispute traces back to a 2006 case filed by Haco and Société Bic against Doshi Iron Mongers, accusing it of passing off counterfeit Bic pens. Doshi had paid Ksh15 million as part of a 2002 settlement meant to shield him from further prosecution, but later claimed the companies violated the deal when more pens were seized and new charges filed. The Court of Appeal, however, ruled that the products were different and dismissed Doshi’s claims for damages, Business Daily reports.