Students Miss Govt Funding Over Erroneous Data by 1,900 Schools

Hello and welcome to the Money News Roundup, where we cover how thousands of students have missed government funding over faulty data submitted by schools. We also cover the new wave of auctions.

Students in 1,900 Schools Miss Gov’t Funding Over Faulty Data 

As reported in the Daily Nation, thousands of secondary school learners across Kenya have missed government funding after their schools submitted erroneous data to the Ministry of Education. 

The ministry is conducting a nationwide data verification exercise and is only releasing funds to schools that have been cleared. 

Internal reports show 719 schools provided incorrect bank details, 900 submitted incomplete data, 250 used wrong templates or attachments, and 80 uploaded corrupt files or failed to provide learners’ Unique Personal Identification (UPI) numbers.

The delays have crippled operations in schools, with head teachers warning they cannot pay suppliers or run co-curricular activities. 

Basic Education Principal Secretary Julius Bitok told MPs that over 50,000 ghost learners have already been uncovered in secondary schools, translating to a loss of about Ksh1.1 billion annually and Ksh4.4 billion over four years. 

He added that more than 60 percent of the 32,000 schools have now been cleared, with Ksh13 billion of the Ksh23 billion allocation disbursed.

Education Committee chair Julius Melly urged tough action against individuals behind ghost learners.

Nairobi Among Counties Flagged Over Spending on Travel

County governments are facing scrutiny for excessive spending on non-essential travel. A report by the Controller of Budget, Margaret Nyakang’o, revealed that 23 out of 47 counties failed to meet the 30% development spending threshold and spent billions on lavish trips.

As reported by Citizen Digital, Nairobi County led the pack, spending Ksh863 million on travel, with one official spending Ksh17 million on a trip to Dubai.

Machakos and Kisumu counties followed, with expenditures of Ksh631 million and Ksh491 million, respectively. 

These funds were used for trips to destinations like Dubai, London, and Washington D.C., for activities such as conferences, study tours, and benchmarking. Ironically, the counties that spent the least on development were the top spenders on travel.

Kenyans Face Auctions as Banks Cut Back on Forgiving Bad Loans

Banks reduced loan write-offs by Ksh26 billion in 2024, adopting an aggressive approach to recoveries that led to a surge in auctions, receiverships, and liquidations. 

According to the Central Bank of Kenya’s latest Financial Stability Report, lenders wrote off just Ksh7 billion last year, down from Ksh33.3 billion in 2023, a 79 percent drop. This shift saved banks from losses on loans deemed irrecoverable, often due to default.

Major lenders, including Absa and DTB, cut write-offs to about Ksh9 billion each.

As reported in the Business Daily, loan recoveries rose from Ksh4.7 billion to Ksh5.2 billion, boosting profits as sector pre-tax earnings climbed 19% to Ksh260.3 billion.

Analysts attribute the trend to improved economic prospects and expectations of lower interest rates and inflation.  

As a result, banks tightened credit standards and focused on recoveries instead of absorbing losses, pushing struggling firms into auctions and liquidations. 

The shift underscores the sector’s determination to protect profitability amid rising non-performing loans, with even previously written-off loans starting to perform again.

Govt in Final Stage to Introduce Instant Fines for Traffic Offenders - CS Chirchir

The government is in the final stages of introducing instant fines for traffic offenders to curb rising road accidents, Transport CS Davis Chirchir has announced. 

Speaking at the National Road Safety Conference in Mombasa, he cited NTSA data showing 3,397 deaths from road crashes in the first nine months of 2025, 28 more than last year, with pedestrians most affected. 

As reported by Nation Africa, the system will use cameras at major junctions to capture offences and relay data to a central Intelligent Transport Management System, issuing tickets or paybill numbers to offenders.

Chirchir added that the move will ease court congestion, deter reckless driving, and reduce bribery. Fines collected will also fund road safety projects while ensuring faster enforcement and accountability.

CBK Raises KSh61.4 Billion as Investors Flock to 20 and 25-Year Bonds

The Central Bank of Kenya (CBK) has raised Ksh61.44 billion from reopening two long-dated Treasury bonds, rebounding from a weak start to its September sale.

The 20-year FXD1/2018/020 and 25-year FXD1/2022/025 attracted Ksh97.29 billion in bids against a Ksh40 billion offer, with CBK accepting Ksh23.51 billion and Ksh37.93 billion respectively at interest rates of 13.58% and 14.14%. 

As reported in Kenya Wallstreet, this followed a poor uptake of the 30-year bond earlier in the month.

No Excuses This Time - CBK Governor Tells Banks on Interest Rates

The Central Bank of Kenya (CBK) has called on commercial banks to cut lending rates in line with reduced benchmark rates under a revised risk-based pricing regime. 

Banks are expected to adopt the Kenya Shilling Overnight Interbank Average (Kesonia) by February 2026 to align lending rates to the Central Bank Rate (CBR). 

CBK Governor Kamau Thugge warned banks against making excuses, saying lower benchmark rates must translate to lower loan costs. 

Kesonia will serve as an industry benchmark, with total loan costs set as Kesonia plus a risk-based premium. Read more.