MPs Probe Ksh75M Used on Groundbreaking Event of Failed JKIA Project 

Hello Moneymakers, Washington here. In this newsletter, we are covering the unfolding investigations that have exposed how Ksh75 million was used during a groundbreaking ceremony for the failed Greenfield Terminal project. We also cover the proposed Health Promotion Levy and the firing of 1,200 Equity Bank employees.

KAA on Spot Over Groundbreaking Event

The National Assembly’s Public Investments Committee has commenced investigations into the use of Ksh75 million by the Kenya Airports Authority (KAA) for the groundbreaking ceremony of the Greenfield Terminal project at JKIA.

While appearing before the committee on Thursday, May 29, KAA officials were put to task over the 2013 expenditure, which they argued was extreme.

In response, the authority, represented by Acting MD Nicholas Bodo, indicated that the expenditure had reached the 75 million mark since the event was presidential and attended by former President Uhuru Kenyatta. Therefore, there was a need for more logistical preparation.

However, despite the KAA response, MPs took issue with the fact that the expenditure was not indicated to be part of the budget used for the ceremony.

According to the Committee, records show the amount was paid to contractors and labelled as a ‘contract variation’ despite there being no such provision in the original contract or bill of quantities.

“Management said the costs were covered using contingency funds within the contract, and the expenditure was approved by the tender committee, citing compliance with the Public Procurement and Disposal Act (PPADA) of 2005,” read the statement by Parliament in part.

During the session, MPs sought to know whether the officials who authorised the expenditure were still at KAA. However, they were notified that most of the employees had left.

Nonetheless, the committee pushed for accountability to prevent such an incident from re-occurring.

"How can there be such a huge variation in the cost of a project that hasn't even started? This committee must take the matter seriously and hold those responsible accountable. We cannot allow people to play around with taxpayers’ money. They must be dealt with accordingly to serve as an example to others,"  Kaloleni MP Paul Katana expressed.

The Greenfield Terminal project was initiated in 2013 and entailed the building of a new terminal at JKIA. The project was cancelled in 2016 after controversy over the procurement and contract of the project.

MP Proposes New Levy for Sugary Drinks

As reported by Nairobileo.co.ke, Nandi Member of Parliament Bernard Kitur has proposed the introduction of a Health Promotion Levy targeting sugary drinks such as sodas.

The MP, who submitted his proposal to the National Assembly's Finance Committee, which is conducting public participation on the Finance Bill 2025, explained that the levy was necessary owing to the rising use of sugary drinks.

He added that the drinks pose health risks to Kenyans, therefore, such a move is aimed at reducing the use of sugary drinks and promoting healthy and alternative options.

“The lawmaker suggested that funds collected from the levy be allocated to the school feeding program, public health campaigns, school nutrition programs, and healthcare infrastructure. He further proposed that the Kenya Revenue Authority (KRA) administer the collection, while the Kenya Bureau of Standards (KEBS) would verify product contents.

“However, he recommended exemptions for 100% fruit juices with no added sugar, dairy-based beverages containing at least 75% milk content, and exported goods,” Parliament noted in its report.

‍Govt to Borrow Ksh284 Billion from Foreign Market

The government is set to borrow Ksh284 billion from the foreign market in the next financial year to cover the projected budget deficit of Ksh891 billion.

The People Daily is reporting that the National Treasury is projecting less borrowing from the foreign market because of shrinking sources of lending.

As an alternative, the government will be focused on looking more locally for funding through loans and raising revenue measures.

"So, this means we will focus on both revenue-driven measures to raise revenues while

also cutting on expenditure, so that the amount of debt that we take is less," Treasury PS Chris Kiptoo told Parliament.

Equity’s James Mwangi Issues Advisory as 1,200 Employees Receive Sack Letters 

Equity Bank CEO James Mwangi, in an interview with Citizen TV, has advised customers not to pay the bank employees for any services rendered.

While addressing the recent mass layoff of staff at the bank, the CEO expressed that customers needed to be provided with service without being asked to pay any money. He expressed that such actions also jeopardise the work of the bank employees.

As a result, the company will be rolling out a toll-free number where customers can raise complaints over such incidents.

“Customers should be served and enabled to realise their dreams without any inhibition whatsoever. So there is no obligation whatsoever for any customer to buy a staff lunch or to give them a tip because essentially we are not on the look-out and that jeopardises the position of the staff,” he stated

The layoffs of 200 employees were done after the bank unearthed irregular payments made to the employees’ bank accounts, resulting in the loss of Ksh1.5 billion.

Meanwhile, Business Daily is reporting that 1,200 more staff members were issued with notices of dismissal on Wednesday following the recent investigations at the bank.