Kenyans Lose Ksh1.59 Billion to Fraudsters Targeting Banks 

Hello and welcome to the Money News Roundup, where we are covering the theft of Ksh1.5 billion from Kenyans by fraudsters targeting banks. We also cover loans Kenya will take this financial year.

Ksh1.5 Billion Stolen by Fraudsters Targeting Banks

Kenyans lost Ksh1.59 billion in 2024 as hackers targeted banks amid the increasing use of digital and mobile banking

A report by the Central Bank of Kenya (CBK) revealed that mobile banking bore the brunt, with losses rising by 344% to Ksh810.68 million. Most attacks occurred late at night on weekends.

Fraud incidents more than doubled to 353 in 2024, driven by SIM swap fraud, phishing, malware, card fraud, and identity theft. 

The total amount exposed to fraud ballooned from Ksh680.9 million in 2023 to Ksh1.96 billion in 2024, though banks managed to recover Sh368.8 million. 

According to the Business Daily, some banks are now spending up to Ksh400 million annually on insurance to mitigate the risks.

“The motivation of cyber criminals targeting financial institutions is financial gains. Cyber fraud was prevalent in the banking sector in 2024, with reported cases rising from 153 in 2023 to 353 in 2024, and amount exposed increasing from Ksh680.9 million to Ksh1.9 billion,” read the report in part.

“The actual loss following attacks rose from Ksh412 million to Ksh1.5 billion during the period, thus impacting negatively on the profitability of banks and their ability to build more capital."

Govt Plans Ksh129 Billion Debt-for-Food Swap to Ease Fiscal Pressure

The government is planning a $1 billion (Ksh129 billion) debt-for-food swap with the World Food Programme by March 2026 to ease fiscal pressure without increasing its debt burden. 

As reported in Bloomberg, the strategy focuses on non-market-based measures to restructure existing obligations and redirect savings to essential areas like food, health, and climate programs.

Debt for food swaps is an arrangement where a creditor waives part of Kenya’s debt in exchange for Kenya investing the saved funds in food security programs like agricultural development.

After Kenya was classified by the IMF as a high-risk country of debt distress, the government is also seeking to diversify its borrowing sources.

Plans include a Ksh22 billion ($170 million) samurai bond by December and Ksh64 billion ($500 million) in sustainability-linked bonds by March 2026. 

The National Treasury also expects $1 billion (Ksh129 billion) loan from Abu Dhabi and a $1.2 billion (Ksh155 billion) World Bank loan in two tranches by mid-2026.

Couple Sues Bank for Changing Loan Terms, Including Currency

A couple has sued Stanbic Bank to stop the auction of their three properties in Mombasa and Nairobi, claiming they have already repaid over Ksh463 million on a loan of Ksh101.2 million. 

Nasser Baksh and Makarim Omar allege the bank unlawfully converted their loan accounts from Kenyan shillings to US dollars without consent, resulting in inflated repayment amounts.

They also claim the bank increased interest rates and monthly repayments without proper notice, violating Kenyan laws and their constitutional right to information. 

As reported in the Business Daily, the couple seeks a court order to revert the loans to Kenyan shillings and recalculate repayments based on the original terms, disputing the bank’s demand for Ksh163 million.

UBA Group to Invest Ksh19.3 Billion in Roads Bond

UBA Group, the parent company of UBA Kenya Bank, is set to invest Ksh19.3 billion ($150 million) in Kenya’s roads bond aimed at clearing pending bills in the road sector through securitisation.

The Business Daily reported that the bond is expected to raise Ksh175 billion to cover historical arrears to road contractors. 

Investors, including UBA Group, will be repaid from a Ksh7 per litre levy on petrol and diesel collected through the Roads Maintenance Levy. The government increased this levy from Ksh18 to Ksh25 per litre in July last year to support bill payments. 

Kenya to Sign Power Deal with Ethiopia After Launch of Largest Dam in Africa  

Kenya is set to sign a power purchase agreement with Ethiopia to access reserve power from the 6,450MW Grand Ethiopian Renaissance Dam (GERD). The announcement was made by President William Ruto.

With Kenya’s peak demand exceeding 2,300MW, the additional supply will boost reserve margins and grid reliability, especially during droughts. 

Speaking at GERD’s inauguration in Ethiopia, Ruto said clean, affordable power is vital for industrial zones, ICT hubs, and agro-processing. Read more from Citizen Digital here.