Treasury CS John Mbadi Ousts Consolidated Bank Board and CEO 

Hello and welcome to the Money News Roundup Newsletter, where we cover the latest leadership changes at the Consolidated Bank. We also cover plans to make SHIF and pension deductions mandatory for gamblers.

Treasury CS Mbadi Ousts Consolidated Bank Board and CEO 

Treasury Cabinet Secretary John Mbadi has removed the board and CEO of Consolidated Bank of Kenya, sparking a court battle. 

The shake-up began after the board recommended renewing CEO Sam Muturi’s term beyond October 11, a move Mr Mbadi rejected. 

The CS fired three directors on October 3 for pushing to retain Mr Muturi and directed the remaining board members to appoint University of Nairobi lecturer Dr Murage Njeru as acting CEO.

Notably, Njeru was eying the Mbeere North Parliamentary seat but opted out of the race in favor of a UDA candidate.

 As a result, Muturi has since moved to court seeking reinstatement or Ksh76 million compensation.

However, the Central Bank of Kenya protested Dr Njeru’s appointment, saying he had not undergone the mandatory “fit and proper” vetting. The dispute has left the bank without a substantive board. 

Mr Muturi had expected a fresh term after leading the bank to its first profit in 15 years. Read more.

Govt Mulls Introducing Mandatory SHIF and Pension Deductions From Betting Stakes

Kenyans who gamble will soon have part of their betting stakes deducted to fund the Social Health Insurance Fund (SHIF) or pension savings under new rules.

The Gambling Control Act 2025 gives the Gambling Regulatory Authority of Kenya the power to introduce a mandatory savings component for every bet placed. This will come on top of the current 15% excise duty on stakes and 20% withholding tax on winnings.

The proposal is expected to significantly increase SHIF membership and contributions, with more than 12 million Kenyans actively betting. 

As reported by the Business Daily, it is estimated that Kenyans place bets worth over Ksh150 billion annually.

Now the government is eyeing this industry as the health sector grapples with unpaid bills to medical facilities. 

However, the Act does not clarify how the new deductions will affect gamblers already contributing to SHIF as salaried workers or through household subscriptions.

The government says the move aims to promote a savings culture, especially among informal sector earners, and curb rising gambling addiction. Regulations detailing how the policy will work are currently being drafted. 

Once implemented, minimum betting amounts are expected to increase to accommodate the mandatory savings component.

Kenya Railways Issues Update Over Resumption of Nairobi-Kisumu Railway Service 

Kenya Railways says restoration of the damaged Nairobi -Kisumu Meter Gauge Railway line is over 70% complete, with reopening expected in December 2025 during the festive season

As reported by the Star, the Kijabe–Longonot section was destroyed in April 2024 after heavy rains caused major washaways, halting both passenger and freight services. Works underway include rebuilding culverts, stabilizing embankments, upgrading drainage, and reinforcing the track to withstand future extreme weather.

Once reopened, the route will restore a key transport link between Central and Western Kenya, paving the way for the return of freight services and the Kisumu Safari Train.

Kenya Railways noted that the revival of the MGR is critical to easing road congestion, cutting logistics costs, and strengthening Kenya’s competitiveness as a regional gateway.

Airlines, Operators Protest New KWS Park Payment System

Airline operators have joined tourism stakeholders in opposing the new KWS park fee payment system, warning it is driving up costs and hurting the sector.

 The Kenya Wildlife Service had scrapped bank transfers, leaving M-Pesa and Visa as the only payment options, and introduced an 8.5% card processing fee—significantly higher than charges on other government platforms. 

As reported in the Business Daily, Industry players have also criticized KWS for using an inflated exchange rate of Ksh135 per US dollar, above the CBK rate of about Ksh129, making Kenya’s parks less competitive for foreigners.

Safarilink CEO Alex Avedi says the abrupt changes have caused booking cancellations and reduced air traffic to tourist destinations, adding that sudden cost increases force foreign agents to absorb losses, risking business closures. 

On the other hand, Kenya Tourism Federation chair Fred Odek warned the move could cost operators Ksh370 million annually and urged the government to restore flexible payment options and suspend the new fees pending consultations.

Court Blocks Auction of Peter Munga’s Britam Shares 

The High Court has stopped ABC Bank from auctioning businessman Peter Munga’s 75 million Britam shares, valued at about Ksh649 million, after his wife, Rose Njambi, claimed they are matrimonial property. 

As in the Business Daily, Njambi argued the shares were jointly acquired and could not be used as loan collateral without her consent. 

The court agreed she had an arguable case and issued an injunction, freezing the bank’s plan to recover a Ksh433 million debt. 

She said selling the shares would strip her of the family’s only major asset and deposited Ksh100 million as security. ABC Bank opposed the case as a delay tactic, but the court held that disposing of the shares would cause irreparable loss pending full determination of ownership.