Report Exposes Weaknesses in Treasury and Parliament as Public Debt Spirals

Hello and welcome to the Money News Roundup Newsletter where we are covering an African Development Bank report that exposes skills gaps in the Treasury Public Debt Management Office which have contributed to spiraling public debt, the finding that five communities occupy 70 percent of all government jobs, and an EACC audit showing Kenya has a shortage of 200,000 officers.

Skills Gap in Treasury and Parliament

Kenya is reeling from a spiraling debt burden which stands at 65 percent of gross domestic product, far above the current upper limit of 55 percent. According to the African Development Bank, the Treasury and Parliament are partly to blame.

In a report titled Unpacking the Drivers of Public Debt Dynamics in Kenya, the Bank questioned the National Assembly's ability to assess the country’s debt situation. The report, authored by AfDB country economist Duncan Ouma and senior research economist Martin Nandelenga, also showed that there were inadequacies in the Public Debt Management Office at the National Treasury that have contributed to public debt rising to risky levels.

"The ability of the National Assembly to provide oversight and undertake rigorous assessment of the debt situation is limited due to shortage of human and institutional capacity," the report noted, adding, "The situation is compounded by similar inadequacies of the Public Debt Management Office at the National Treasury."

“The PDMO is unable to identify fiscal risks to mitigate rising debt. This is evident in the rapid accumulation of poorly structured debt with short maturity, high interest rates, currency mismatches and financing of contingent liabilities, which have increased repayment pressures.”

However, the director of the Parliamentary Budget Office, an office created in 2007 to help members of parliament monitor the national budget, told Business Daily that the office has adequate capacity.

"Capacity is continuous of course, but the PBO has adequate capacity to analyse debt issues. Whether the advice is taken by members of parliament remains another issue, which is now within the political arena," he stated.

Kenya’s public debt has crossed Ksh 11.81 trillion.

NCIC Audit Reveals Five Communities Hold 70 Percent of Jobs in State Corporations

A new audit by the National Cohesion and Integration Commission shows that Kenya’s five largest ethnic groups continue to dominate public employment, controlling more than 70 percent of jobs in State corporations. According to the report, cited by Citizen Digital, the Kikuyu, Kalenjin, Luo, Luhya and Kamba communities together with the Kisii, Meru and Mijikenda occupy an overwhelming 88 percent of all positions across parastatals. The NCIC warns that this entrenched dominance, driven largely by political patronage, poses a serious threat to national unity. Moi Teaching and Referral Hospital was singled out for extreme non-compliance with 67 percent of its workforce coming from one community.

The report also shows that the same eight communities control 86 percent of all CEO jobs, with just four of them Kikuyu, Kalenjin, Luo and Luhya taking nearly two-thirds of top leadership roles. The audit further highlights a significant gender gap. 62 percent of State corporation employees are men, while women hold only 22 percent of CEO positions, far below the constitutional gender threshold.

EACC Audit Reveals Massive Police Shortage

Kenya is facing a severe police manpower crisis, with the National Police Service short of more than 200,000 officers, according to an audit by the Ethics and Anti-Corruption Commission reported by Daily Nation. The shortage has been driven by high exit rates over the past three years due to non policing assignments, natural attrition, dismissals and resignations, including 3,229 exits from the Kenya Police Service alone. While the NPS strategic plan set an authorised staff level of 306,590 uniformed officers, only 106,469 were in post at the time of the audit, leaving a gap of 200,121. Data from the Kenya National Bureau of Statistics also shows police numbers dropped from 92,350 in 2023 to 88,483 in 2024.

Meanwhile, the government is in the process of hiring 10,000 additional police officers across the country.

Co-operative Bank Declares First-Ever Interim Dividend as Profits Rise

Co-operative Bank of Kenya shareholders are set to receive their first-ever interim dividend of Ksh1 per share after the lender’s net profit for the nine months ended September rose 12.3 percent to Ksh21.56 billion, up from Ksh19.21 billion a year earlier, Business Daily reports. The dividend, totaling Ksh5.86 billion, will be paid on or about December 4 to shareholders on the bank’s register as of November 26, 2025, with top shareholder Co-op Holdings Co-operative Society Limited receiving Ksh3.78 billion. The growth in earnings was supported by a 22.8 percent rise in net interest income to Ksh45.27 billion, while operating income rose 13.9 percent to Ksh67.38 billion.

Co-op Bank increased its branch network to 217 from 204, boosting staff numbers to 5,826, and expanded its premium banking strategy with new executive centres in Nairobi and Mombasa. Subsidiaries performed mixedly, with Kingdom Bank posting lower profits of Ksh527.59 million while other subsidiaries, including Co-op Trust Investment Services Limited, reported improved earnings. The lender’s asset base grew 8.6 percent to Ksh815.27 billion, customer deposits rose 6.7 percent to Ksh548.57 billion, and the loan book expanded to Ksh406.52 billion from Ksh381.34 billion.

EABL Absorbs Full Ksh16.7 Billion Bond Offer to Boost Liquidity

East African Breweries Plc has absorbed all Ksh16.7 billion offered by investors in the first tranche of its Ksh20 billion medium-term corporate bond, well above the targeted Ksh11 billion, Business Daily reports. The brewer used its green-shoe option to take up the extra Ksh6 billion and still has room to raise an additional Ksh3.23 billion in future tranches. Proceeds from the bond will be used for general business purposes and to repay existing borrowings, including early redemption of a previous five-year Ksh11 billion bond. The new bond pays 11.8 percent interest, cheaper than the 12.25 percent on the redeemed paper.

The oversubscription was driven by high market liquidity, stabilising government yields, and investor confidence in EABL’s brand and predictable cash flows. The refinancing will ease short-term liquidity pressure, extend the company’s debt profile, and reduce financing costs. On a like-for-like Ksh11 billion portion, interest expense on the new bond would be Ksh1.29 billion versus Ksh1.34 billion on the redeemed bond. EABL’s current ratio stood at 1.11 times for the year ended June 2025, showing the company can meet its short-term obligations.

Government Considers New Cybersecurity Agency to Boost Digital Economy

The government is exploring the creation of a dedicated State agency on cybersecurity to strengthen Kenya’s digital economy and address rising cyber threats, The Standard reports. Principal Secretary for ICT and Digital Economy John Tanui said the move is inspired by models in other countries and aims to complement the work of the Office of the Data Protection Commissioner. The new agency is expected to create over 3.5 million jobs, attract youth into the sector, and support local enterprises in developing solutions to emerging cyber threats.

Tanui highlighted that the government is taking steps to enhance cybersecurity, including approving the Computer Misuse and Cyber Crime Regulations, 2024, and the Computer Misuse and Amendment Act, 2025. He urged adoption of technologies such as Artificial Intelligence, machine learning, Blockchain, and digital identification to improve threat detection and secure public records, while emphasizing the need for ethical guidelines and robust governance to ensure responsible deployment of these technologies.

Kenya Railways Adds Extra SGR Trips This Weekend

Kenya Railways has announced additional Standard Gauge Railway trips on Friday, November 14, and Saturday, November 15, to meet high passenger demand, Citizen Digital reports. On Friday, an extra train will depart Mombasa at 9:45 am, stop briefly at Voi, and arrive in Nairobi at 3:48 pm. On Saturday, another train will leave Nairobi at 9:45 am, stop in Voi, and reach Mombasa at 3:36 pm.

The SGR currently operates three daily trips between Nairobi and Mombasa. The inter-country train departs at 8:00 am with multiple stops including Mtito Andei, Voi, Emali, Kibwezi, and Mariakani. The express service leaves Nairobi at 3:00 pm with only one stop in Voi, while the night train departs at 10:00 pm and arrives in Mombasa at 3:35 am via an express route.