Multi-Trillion State House Procurement Plan Exposes Flaw in New Govt System

Hello and welcome to the Money News Roundup Newsletter, where we cover the flaws exposed in the electronic government procurement (e-GP) system and the new school term dates unveiled by the government.

Erroneous Ksh784 Trillion State House Tender Plan Exposes Flaws in e-Procurement System

An erroneous Ksh784 trillion procurement plan by President William Ruto’s office has exposed flaws in Kenya’s electronic government procurement (e-GP) system, which was designed to curb tendering fraud.

The Executive Office of the President uploaded plans showing projected spending of Ksh784.3 trillion, nearly 50 times Kenya’s GDP, despite its approved Ksh5.57 billion budget for the year ending June 2026. 

As reported in the Business Daily, the entries include Ksh684 trillion for construction services, Ksh55 trillion for travel and lodging, and Ksh25.89 trillion for transport and storage. 

Overall, the published plans amount to 140,826 times the approved budget. 

Treasury CS John Mbadi did not comment on the issue, but had earlier said all procurement plans would be aligned with budgets uploaded from IFMIS to e-GP.

The system is expected to handle Ksh1 trillion in procurements this fiscal year.

The e-GP system was procured by the National Treasury in April 2022 at approximately Ksh375 million from an Indian firm, i-Sourcing Technologies, which is partnering with a Kenyan firm.

CS Mbadi has stated that the two companies would run the system with a plan to fully transfer operations to the government by 2028.

"At the end of the three years (from 2025), the system is supposed to be handed over fully with access codes surrendered to the government, during which time we will have enough capacity to run the system independently," he stated.

Govt to Create Ksh4 Trillion Infrastructure Fund for JKIA and Road Projects 

President William Ruto has announced plans to create a Ksh4 trillion National Infrastructure Fund to finance major projects in energy, roads, and dams.

Speaking during the commissioning of Phase One of Konza Technopolis in Makueni County, Ruto said the fund will pool resources from the budget, private sector, and privatization to drive Kenya’s industrialization.

As reported by Citizen Digital, he revealed that Ksh1 trillion will expand power capacity by 10,000MW, Ksh1.5 trillion will build 50 mega dams for irrigation, and another Ksh1.5 trillion will develop new highways, extend the SGR, and modernize JKIA.

Citing South Korea’s progress, Ruto noted that bold investments would boost growth, adding that Konza smartest city, will be the driver of Kenya’s technological and economic transformation.

Ministry of Education Unveils 2026 School Calendar 

The Ministry of Education has released the 2026 academic calendar for all schools.  According to a circular signed by Basic Education PS Julius Bitok on October 9, 2025, the first term of 2026 will run from January 5 to April 2, with a mid-term break from February 25 to March 1. 

The second term will begin on April 27 and end on July 31, followed by the third term from August 24 to October 23. 

As reported by the Eastleigh Voice, CBC assessments - the Kenya Primary School Education Assessment (KPSEA), Kenya Intermediate Level Education Assessment (KILEA), and Kenya Junior School Education Assessment (KJSEA) will take place from October 26 to 29.

The Kenya Certificate of Secondary Education (KCSE) will commence on November 2 and end on November 20, 2026. The December holiday will last until January 1, 2027. 

Number of Formal Jobs Created by Govt Drops

As reported by the People Daily, President William Ruto’s pledge to create 1.2 million jobs annually remains unmet, as a Parliamentary Budget Office (PBO) report shows only 78,600 formal jobs were created in 2024, compared to 782,300 informal jobs.

The report highlighted that the number of formal jobs created in 2024 dropped.

"Formal sector employment growth fell from 4.0 per cent in 2023 to 2.4 per cent in 2024. In absolute numbers, the informal sector generated 782,300 new jobs in 2024, while the formal sector added 78,600 jobs," read the report in part.

The report also reveals Kenya’s economic growth slowed to 4.7% in 2024 from 5.7% in 2023, the lowest since the pandemic. The decline was attributed to weaker performance in agriculture, which fell to 3.9%, and a contraction in industry to 1.5%, driven by reduced cement output, high interest rates, and low credit access. 

The services sector also dipped to 6.1% due to slower activity in transport, finance, and hospitality. While inflation remained within target, the PBO warned that food prices could rise amid poor rains and climate volatility.

IFC to Invest Ksh9.6 Billion in Axian Telecom’s Bid to Acquire Zuku’s Parent Company 

The International Finance Corporation (IFC) will lead a group of investors funding Axian Telecom’s $550 million bond, part of which will finance the acquisition of Kenya’s Wananchi Group, owner of Zuku.

IFC plans to invest $75 million (Ksh9.6 billion) in the bond. 

As reported by the Business Daily, Mauritius-based Axian signed a deal in August 2024 to acquire a 99.63% stake in Wananchi, which provides fibre, internet, and pay-TV services in Kenya, Uganda, and Tanzania. 

The buyout marks Axian’s entry into Kenya’s telecom market. Founded in 2015, Axian operates in six African countries with 41 million mobile subscribers and runs mobile money under the Yas brand.

Wananchi, founded in 1998 by Njeri Rionge and Joe Mucheru, holds up to 20% of Kenya’s internet market.

Sanlam Kenya to Receive Ksh220M in General Insurance Transfer to Jubilee-Allianz 

Sanlam Kenya will receive Ksh220.6 million from Jubilee-Allianz General Insurance Kenya after transferring its general insurance business in a deal worth Ksh820.6 million. 

The amount includes Ksh600 million in minimum solvency capital retained by Sanlam General Insurance and a net consideration of Ksh220.6 million to be paid to the NSE-listed firm. The transaction is part of the Sanlam-Allianz joint venture, which aims to create a pan-African financial services group across 27 countries.

As reported by the Business Daily, Jubilee-Allianz will acquire Sanlam General’s portfolio valued at Ksh3.09 billion in assets and Ksh2.87 billion in liabilities. 

The move coincides with Sanlam Kenya’s rebrand to Sanlam Allianz Holdings and Jubilee Holdings’ plan to sell its stakes in Jubilee-Allianz operations for about Ksh4.5 billion.