Intrigues Behind Firings and Resignations of Top Bosses at Govt Agencies

Hello and welcome to the Money News Roundup, where we cover the intrigues behind the recent firings at state agencies and how it is affecting project implementations. We also cover President William Ruto's comments on the Haiti mission.

Intrigues Behind Firings and Resignations of Top Bosses of Govt Agencies

The recent firings and resignations witnessed in State corporations have been attributed to growing political pressure and efforts by the current administration to fast-track key infrastructure projects ahead of the 2027 elections. 

As reported in the Business Daily, at least five CEOs from major parastatals overseeing roads, energy, and ICT have either resigned, been suspended, or dismissed in the past three months. 

‍Why it matters: The shake-ups, which follow earlier board changes in over 58 parastatals, reflect efforts to align leadership with President Ruto’s development agenda. However, the changes have led to operational disruptions, stalled projects, and mounting legal challenges.

Kenya Rural Roads Authority (KeRRA) former boss Philemon Kandie and KeNHA’s Kungu Ndungu exited amid concerns over project delays. 

Kenya Electricity Transmission Company (Ketraco) CEO John Mativo was ousted and replaced by Kipkemoi Kibias (in acting capacity) last week, while Kenya Re’s MD Hillary Wachinga was suspended. 

ICT Authority CEO Stanley Kamanguya was removed but later reinstated by the court. Most of the affected CEOs were appointees of the previous regime. 

Business Closures Surge as Operational Costs Weigh on Kenyan Firms

The number of companies seeking to close both voluntarily and forced rose by 24.3% to 2,260 in the year ending June 2025, up from 1,817 the previous year, according to Business Registration Services (BRS). 

Meanwhile, 138,000 firms were registered, a marginal 1.3% rise from 136,209 the previous year, reflecting mixed business fortunes in Kenya. 

BRS noted that new registrations still far exceed closures, but did not explain the slight rebound. 

As reported by the Business Daily, businesses continue to struggle under high operational costs driven by increased taxes, including the mandatory 1.5% housing levy and higher NSSF contributions. 

These burdens, especially for firms with shrinking margins and weak sales due to reduced consumer spending, have pushed many companies to exit the market.

Ruto Decries Lack of Support in Haiti Mission

President William Ruto has criticized the lack of international support for the Kenyan-led security mission in Haiti, saying it has been operating at only 40% of its planned strength due to staffing and logistical challenges.

Speaking at the United Nations, Ruto revealed that while the US provided vehicles, most were second-hand and frequently broke down, putting personnel in danger. 

As reported by Reuters, the US and Panama have proposed expanding the 15-month-old Multinational Security Support (MSS) mission into a larger Gang Suppression Force, backed by a new UN field office and led by contributing countries, the US and Canada. 

The current MSS mandate expires on October 2. US Deputy Secretary of State Christopher Landau said the mission lacks the resources to address Haiti’s crisis, while Haiti's transitional council supports the new force. 

China expressed cautious backing, emphasizing that Haiti needed to take primary responsibility. 

First Climate-Focused Fund Licensed In Kenya

The Capital Markets Authority (CMA) has licensed four new market intermediaries, including Kenya Climate Ventures, the first locally licensed climate-focused fund manager.

Founded in 2016, the firm invests in climate-smart, gender-inclusive enterprises across agribusiness, energy, water, forestry, and waste management, with 23 investments worth about Ksh516 billion. 

EDC Asset Management (Kenya) was also licensed to offer fund management and advisory services. 

As reported by the Kenyan Wall Street, CMA also approved Jalia Advisers as an Investment Adviser and licensed Co-operative Bank as a Corporate Trustee, expanding its role in overseeing REITs and unit trust schemes in Kenya’s growing capital markets.

Starlink Drops to 9th in Kenya’s Broadband Market Amid Growth Freeze

As reported by the Business Daily, Elon Musk’s Starlink has dropped to ninth place in Kenya’s fixed broadband market, with its market share falling to 0.8% in June 2025 from 0.9% in March 2025.

The decline follows an eight-month freeze on new subscriptions in Nairobi and nearby counties due to capacity issues. Meanwhile, Ahadi Wireless entered the top 10 with a 7.5% share. Starlink, which launched in June 2023, had initially grown rapidly but lost momentum. The market remains led by Safaricom (34.3%), JTL (20.6%), and Zuku (12.7%). Starlink has now resumed signups.

DTB Announces Exit From Burundi Market

Diamond Trust Bank (DTB) Kenya is exiting Burundi after 16 years, selling its 83.67% stake in DTB Burundi. 

The sale is to a consortium of investors led by an existing minority shareholder, Unik Investment S.A., led by Shafiq Jiwani. 

According to its 2024 annual report, DTB’s total investment in the subsidiary was Ksh636.9 million, and the subsidiary's total assets stood at Ksh4.6 billion. The exit aligns with DTB's strategy to focus on its core markets in Kenya, Uganda, and Tanzania. Read more.

SK Macharia Makes Changes at Directline Assurance Amid Internal Shareholder Disputes 

As reported by Citizen Digital, Dr SK Macharia, Chairman of Royal Media Services, has appointed a new management team at Directline Assurance. 

Taking over operations at Directline’s headquarters in Anniversary Towers, Dr. Macharia named Wilson Wambugu Maina as Acting CEO. Stella Kinoti was appointed Chief Finance Officer, with Elizabeth Kuria as her assistant, while James Mari takes over as IT Manager. 

Former CEO Sammy Kanyi was dismissed, with Dr. Macharia stating the changes take effect immediately. 

The insurance company, which has been leading in the matatu industry, was recently overtaken by Africa Merchant Assurance (Amaco), which is partly owned by President William Ruto’s family. 

Directline has been facing internal shareholder disputes that have affected its operations.