State Clarifies Reports of First Family Benefiting From Saudi Jobs

Hello and welcome to the Money News Roundup Newsletter, where we are covering the government’s response to reports of the First Family benefiting from the Saudi jobs program. We also cover Safaricom’s plan to issue a record public bond of Ksh40 billion.

State Clarifies Reports of First Family Benefiting From Saudi Jobs

Foreign Affairs CS Musalia Mudavadi has defended the First Family against claims of profiting from Kenya’s programme of sending domestic workers to Saudi Arabia. 

As reported by Citizen Digital, Mudavadi, while appearing before MPs, dismissed a New York Times report alleging senior officials — including President William Ruto’s family — benefit from recruitment or insurance companies involved in the process. 

The New York Times report claimed that President Ruto's family holds significant shares in a leading insurance company involved in sending low-cost labour overseas.

Mudavadi insisted no single insurer has a monopoly and denied any involvement in human trafficking, adding that the new Conflict of Interest law will address any misconduct. 

"No single insurance company has a monopoly covering Kenyans seeking jobs in the Gulf or any other foreign country. As to whether there's details of family members owned or controlled. We have a list of 594 recruitment agencies and it would take time to go through that detail. But as we speak this Parliament passed the Conflict of Interest bill and if anybody is found to be in conflict, appropriate action will be taken," he stated.

The report also highlighted undocumented Kenyan mothers in Saudi Arabia. Diaspora PS Roseline Njogu said the government has created pathways, including DNA verification and an amnesty programme, but noted that few affected mothers have used these options.

Most Kenyans working in Saudi Arabia are low-skilled employees, the majority of them being househelps.

Recently, the Kingdom of Saudi Arabia has announced a Ksh3,000 increase in the minimum wage paid to Kenyan workers, taking their minimum wage to Ksh34,455 (SAR 1,000).

Safaricom Gets Approval for Record Ksh40 Billion Bond

Safaricom has received regulatory approval to issue a record Ksh40 billion public bond to fund major infrastructure upgrades in Kenya and Ethiopia, marking the largest corporate bond ever listed on the Nairobi Securities Exchange (NSE).

The bond will be issued in tranches once pricing and tenure are agreed upon and approved by the Capital Markets Authority. Proceeds will support Safaricom’s expansion of its 4G and 5G networks as it shifts focus to fast-growing data services amid declining voice revenue. 

As reported by the Business Daily, the funds will also boost network development and ease cash flow challenges in Ethiopia, where Safaricom holds a 53.7 percent stake.

The new bond follows the company’s recent Ksh30 billion sustainability-linked loan from local banks. Safaricom’s debt has risen to Ksh117 billion due to heavy capital spending, especially in Ethiopia.

The telco’s growth strategy targets scaling devices, expanding digital services, and strengthening operations across both markets.

The issuance is expected to revitalise Kenya’s subdued corporate bond market.

Govt Introduces New Levies on Crop Used for Food Colouring

The government has introduced new import and export levies on bixa, a Coast-grown cash crop used in food colouring and cosmetics, signalling increased State oversight of the previously unregulated sector.

Under the Crops (Bixa) Regulations, 2025, exporters of processed bixa will pay a 1% levy on consignment value, while raw bixa exports will attract a 3% levy. Importers will pay 2% of the customs value.

Bixa, locally known as mrangi, is grown in Kwale, Lamu, Malindi, Mswabweni, and Kiunga. Its seeds produce bixin, used in colouring cheese, fish, oils, and cosmetics.

The hardy shrub yields two seasons a year, earning farmers up to Ksh150,000 per acre. Read more.

Petition Filed to Bar Appointment of MPs as CSs After Costing Taxpayers Ksh550M

President William Ruto’s appointment of six sitting MPs to his Cabinet has cost taxpayers over Ksh550 million in by-election expenses, prompting a High Court petition challenging the constitutionality of such moves. 

As reported by Nation, Lawyer Lempaa Suyianka argues that the appointments violated Articles 10 and 201 of the Constitution by bypassing public participation and misusing public funds. 

By-elections in Bungoma, Elgeyo Marakwet, Kandara, Garissa Town, Ugunja, and Mbeere North, triggered by these appointments, have already cost nearly Ksh471 million, with another Ksh100 million projected. 

The petitioner seeks a permanent injunction preventing future MP-to-Cabinet appointments. Kenya’s elections remain among the world’s most expensive, with the IEBC projecting Ksh61 billion for the 2027 General Election, driven by technology, logistics, security, and polling costs.

Kenya to Borrow Ksh1.02 Trillion as Budget Deficit Widens 

The government plans to borrow an additional Ksh1.02 trillion over the next financial year to fill the widening budget deficit, Treasury PS Chris Kiptoo announced on Wednesday.

The financing—equivalent to 4.9% of GDP—will include Ksh241.8 billion in external borrowing and Ksh775.8 billion domestically. Kenya’s public debt hit Ksh12.06 trillion in September 2025, prompting criticism from Kiharu MP Ndindi Nyoro, who warned the administration is borrowing over Ksh3 billion daily.

As reported by Reuters, the funds will support key sectors, including education, where the government aims to hire 20,000 intern teachers in January 2026 and fund training and promotions. 

Additional allocations will go to health and security, including Monday’s recruitment of 10,000 police officers. Kiptoo also urged state agencies to adopt reforms to curb graft and waste.

Govt Unveils Plan to Create 6 Million Agriculture Jobs and Boost Farmers' Earnings

The government has announced a plan to create up to six million jobs by 2030 through the JobsConnect Compact, a global framework focused on greener, dignified employment in agriculture. 

Agriculture CS Mutahi Kagwe said Kenya will be the first African country to finalise the framework, which centres on digital agriculture.

All agricultural data systems will be consolidated under the Kenya Agriculture Data and Information Centre (KADIC), which will link farmers to markets and provide timely insights on weather, pricing, and inputs. 

As reported by Kenyans.co.ke, the initiative targets 5.3 million new and improved jobs, a major cut in food imports, and increased export earnings. With large workforce retirements looming, Kagwe said the plan offers a chance to rebuild talent through agripreneur training.

CMA Fines Chase Bank Executives Over Misleading Financial Reports

The Capital Markets Authority (CMA) has fined former Chase Bank Kenya (CBKL) executives over the 2015 Ksh10 billion Medium-Term Note issuance and misuse of proceeds.

As reported by the Star, former chairperson Zafrullah Khan was fined Ksh5 million and barred from capital market roles for 10 years for approving misleading financial statements and conflicts of interest. 

Former finance GM Makarios Agumbi was fined Ksh3.5 million with a five-year ban, while corporate assets GM James Mwaura received Ksh2.5 million and a two-year ban. All three must complete corporate governance training.

Separately, Ernst & Young was fined Ksh10 million for lapses as Uchumi Supermarkets’ reporting accountant, with staff required to undergo remedial training. 

CMA also recommended disciplinary action against EY and two audit partners for failing to ensure accurate disclosure in Uchumi’s 2014 financial statements.

KCB, Equity Among Africa’s Top Five Best-Performing Banks 

KCB Group and Equity Group have ranked among Africa’s top five best-performing banks in The Banker annual rankings, with KCB third and Equity fifth. 

The assessment focuses on financial ratios and year-on-year improvements, including profitability, leverage, operational efficiency, and growth. Equity emerged as Africa’s fastest-growing bank, while KCB ranked second continent-wide for soundness. Both outperformed larger peers despite being 13th (KCB) and 15th (Equity) in tier-one capital. 

However, rising non-performing loans remain a challenge: KCB’s NPLs stand at Ksh189.1 billion (17.2%), Equity’s at Ksh71.2 billion (17.5%), prompting the banks to increase loan-loss provisions and intensify debt recovery. Read more.