Uganda’s Central Bank Hacked, Ksh2.1 Billion Missing

𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 𝟐𝟖, 𝟐𝟎𝟐𝟒

The Central Bank of Uganda has been hacked and about Ksh2.1 billion stolen, the Daily Monitor reports. The hacking was reportedly carried out by a group of anonymous hackers from South East Asia who go by the moniker “Waste”. Investigations into the matter are being carried out by the country’s military intelligence agencies with fears being expressed that the hackers may have taken more than what was initially reported. The incident highlights the rise of cybercrime globally and in the region. 

A proposal to increase the core capital requirement for banks in Kenya from Ksh1 billion to Ksh10 billion within three years could lead to the shutdown of 24 banks and the loss of nearly 7,000 jobs, as reported by Citizen TV reports. The Kenya Bankers Association (KBA) warned that this move could hinder credit access, negatively impact the economy, and lead to higher interest rates on loans. To meet the new capital threshold, the affected banks would need to raise a total of Ksh150 billion. The KBA also expressed concerns that such a drastic change would limit financial inclusion and disrupt the banks' ability to mobilise deposits and extend loans. Additionally, the proposal could lead to the closure of 627 rental premises.

The Ministry of Labour and Social Protection has announced that salaries for all employees in government ministries, departments, and agencies will be delayed for November. According to Capital Business, this is because they are upgrading the system used to manage payroll, moving from the old manual system to a new electronic one. Employees have been asked to be patient as the changeover is completed.

Parliament has rejected a Treasury proposal that sought to cut counties’ equitable share of revenue to offset a potential shortfall in the 2024/25 financial year, as reported by Business Daily. The National Assembly Budget and Appropriations Committee voted to remove a clause in the Division of Revenue (Amendment) Bill, 2024, which would have forced counties to surrender up to 15% of the national revenue deficit. Counties rely heavily on equitable share funds, as their own-source revenue collections remain low, partly due to mismanagement. The Treasury had set a Ksh2.6 trillion revenue target but projected a shortfall following the rejection of the Finance Bill, 2024, which led to budget cuts of Ksh325.88 billion. The proposal aimed to have counties share the burden of missed targets alongside the national government. However, lawmakers maintained that revenue shortfalls would remain the sole responsibility of the national government, ensuring counties continue to receive their constitutional minimum share.

‍

The Kenyan government has temporarily paused the ongoing nationwide recruitment for job seekers interested in working abroad to allow for a review of the process. Labour CS Alfred Mutua announced that the break, which began on Wednesday, November 20, will help the government assess progress, reorganise the process, and ensure that all successful candidates have the proper documentation. The exercise, which has already been held in six counties, was scheduled to continue in Kakamega but has been postponed until the review is complete. The government aims to cover all 47 counties, with over 5,900 Kenyans already securing jobs abroad. The pause also allows for better coordination with local leaders and adjustments to scheduling conflicts. The recruitment process will resume after December 12.

‍

In a report by Business Daily, Kenya’s public debt increased by Ksh228.96 billion in the first quarter of the current fiscal year, reaching Ksh10.8 trillion as of September 2024, up from Ksh10.6 trillion in June. Central Bank of Kenya data reveals this 2.2% growth occurred amid significant tax collection shortfalls by the Kenya Revenue Authority (KRA), which missed targets by Ksh35 billion in July, Ksh25 billion in August, and Ksh10 billion in September. Domestic debt rose by Ksh191.4 billion (3.5%) to Ksh5.6 trillion, while external debt increased by Ksh37.5 billion (0.7%). The World Bank and IMF now account for 43.3% of Kenya’s foreign debt, which has surged to Ksh2.2 trillion. More than half of the tax revenue is currently used to service public debt, straining funds available for development projects.