Unknown People Pocketed Ksh1.45 Billion from eCitizen Payments - Auditor General 

In Summary

• Shadowy private firms earned Ksh1.45 billion from the eCitizen platform in a year, with MPs demanding transparency about their operations and earnings.
• Mhasibu Sacco takes a Ksh480.6 million hit due to KUSCCO's financial troubles and has taken KUSCCO to court, while the Law Society of Kenya Sacco Society Ltd managed to withdraw Ksh42.18 million out of Ksh61.44 million.
• 54 Collective's shutdown affects numerous start-ups in Kenya and beyond, as funding from Mastercard Foundation ends.
• Private hospitals continue to suspend SHA cover services despite a Ministry of Health meeting aimed at resolving the issue, demanding Ksh30 billion in arrears.
• Kenya faces Ksh161 billion debt repayment by October 2025, driven by fiscal deficits and heavy borrowing, with concerns over public resource wastage.
• Amsons Group will compulsorily buy out Bamburi Cement holdout investors for Ksh815.9 million after reaching a 90 percent acceptance threshold in its takeover bid.
• A parliamentary team is investigating the proposed Ksh6 billion deal between NOC and Rubis Energy Kenya Ltd, focusing on its financial implications and partnership terms.
• Kenya will take a Ksh10.3 billion hit from higher interest rates on a new dollar bond issued to repay a $900 million Eurobond due in May.
• Kenya's coffee exports rose by 12 percent in 2024, earning Ksh38.4 billion, with several reforms expected to further boost output.
• The unremitted pension contributions for lecturers totalling up to Ksh25.9 billion jeopardises the financial security of university staff.

Shadowy private firms running the government’s eCitizen platform pocketed Ksh1.45 billion in the year ended June 2024, with details about their operations and owners remaining scanty, as reported by The Business Daily. The Auditor-General revealed that the companies handled over 11 million transactions, earning Ksh591.9 million from a Ksh50 convenience fee and Ksh857 million for system maintenance. MPs have pressured the Treasury to disclose details of the firms, particularly Pesaflow, which collects money for services on the platform. Pesaflow, along with Webmasters Kenya and Olivetree Limited, is under scrutiny for its role and earnings, with concerns raised about the lack of transparency and backup for the platform.

Mhasibu Sacco takes a Ksh480.6 million hit on account of KUSCCO. The Sacco indicates that the amount related to a fixed deposit held at KUSCCO matured on Jan 16th, 2024 but KUSCCO was unable to honour the withdrawal request. The Law Society of Kenya Sacco Society Ltd has informed members it managed to pull out Ksh42.18 million, out of Ksh61.44 million, as soon as it emerged that KUSCCO was facing financial troubles. Mhasibu Sacco has said that it has taken KUSCCO to court over the matter.

In a report by The Standard, private hospitals remain firm on suspending Social Health Authority (SHA) cover services, despite the Ministry of Health’s pledge to verify claims before processing payments. This comes after a meeting with the Ministry of Health aimed at resolving the suspension, leaving patients without access to care. The hospitals demand payment of Ksh30 billion in arrears owed by the defunct National Health Insurance Fund (NHIF). Principal Secretary for Medical Services Harry Kimtai convened the meeting to deepen hospitals’ understanding of the payment mechanism. He acknowledged the debt and promised it would be cleared, following verification. Verified claims have increased to Ksh24 billion as of February. The meeting also discussed the Global Budget Payment model, aiming to improve efficiency and transparency.

Read also: Another Kusco-Like Theft of Sacco Savings Discovered at Energy Sacco

A parliamentary team has started investigating the proposed Ksh6 billion deal between the National Oil Corporation of Kenya (NOC) and Rubis Energy Kenya Ltd. The National Assembly Energy Committee is examining how the deal was brokered and its financial implications, which would make Rubis the non-equity strategic partner with NOC for eight years, renewable once. NOC CEO Leparan Morintat appeared before the committee, explaining that Rubis would inject Ksh6 billion into NOC for capital expenditure and working capital. In a report by The Standard, the committee chair directed a quadripartite meeting between NOC, the Committee, the Attorney General's office, and Rubis Energy to discuss the deal further. The probe comes as NOC struggles with a debt profile of Ksh7.98 billion.

Venture capital firm 54 Collective will shut down its Africa operations, including in Kenya, beginning April 30, as its funding from Mastercard Foundation ends. 54 Collective’s start-up portfolio in Kenya includes Wingi, Zanifu, Zuri Health, Wazi, Wareflow, Vuna Pay, Shamba Pride, Synnefa, Powered By People, and Quikk Dev. The venture firm, previously known as Founders Factory Africa, helped early-stage tech startups grow by offering catalytic capital and support. On February 25, 54 Collective announced the funding cut from Mastercard Foundation, affecting its operations. The foundation has played a vital role in the development of the Entrepreneur Academy in Africa, providing over 600 grants to SMEs and training over 2,000 aspiring entrepreneurs in the past few years, as reported by The Business Daily.

Lecturers and university staff risk retiring in poverty as employers withhold their pension contributions, now totalling Ksh25.9 billion. The Daily Nation reports that Records from the Universities Fund reveal that these unremitted contributions are the largest pending bills for universities, overshadowing PAYE arrears and supplier debts. During a conference in Naivasha, university leaders and policymakers discussed alternative funding models to address the issue. As of 2025, total university debts have reached Ksh72.2 billion, including over Ksh20 billion in unpaid PAYE, Ksh3.3 billion in Sacco contributions, Ksh3.1 billion in unpaid supplier debts, and Ksh5.1 billion for stalled projects. This situation threatens the financial security of university employees as they approach retirement, with the pension crisis emerging as a major social security concern. The CEO of Universities Fund, Geoffrey Monari, highlighted the dire consequences, noting that lecturers retiring in the coming years may find themselves without any financial safety net.

Kenya will need to pay Ksh161 billion by October 2025, signalling a deepening debt crisis driven by persistent fiscal deficits and heavy borrowing, Treasury Cabinet Secretary John Mbadi revealed. Among the payments due are Ksh25.8 billion to the Trade and Development Bank, Ksh10 billion, Ksh83.5 billion, and Ksh3.4 billion, totalling Ksh123 billion by October. Additionally, Kenya must pay Ksh38 billion for Eurobond repayment in 2025 and Ksh116 billion in Eurobond debt by May 2027, in three equal installments of Ksh38.8 billion annually. Kenya has also accrued Ksh952 million in syndicated loans, which must be settled within the next eight months, as reported by The Eastleigh Voice. Mbadi highlighted that Kenya's domestic and foreign debt maintains a near 50:50 ratio, with domestic borrowing at Ksh5.6 trillion and foreign debt at Ksh5.1 trillion. The country's growing debt burden impacts economic stability and growth, with multilateral, bilateral, and commercial loans comprising the debt portfolio. Mbadi also raised concerns over wastage of public resources and identified procurement processes as a major area of financial losses. The government has introduced a zero-based budgeting approach and an online procurement system to enhance transparency and efficiency. Recent renovations at State House, costing Ksh59.8 million, were defended as necessary despite cost-cutting efforts.

Bamburi Cement shareholders who did not sell their shares to Tanzanian conglomerate Amsons Group during its takeover in December are set to be compulsorily bought out in a transaction worth Ksh815.9 million. Amsons announced that it would exercise its right to acquire the remaining Bamburi stake—known as a squeeze out—having reached the required 90 percent acceptance threshold. The firm acquired Bamburi shares at Ksh65 per unit and will buy the remaining shares at the same price, taking the transaction's total value to Ksh23.59 billion. To facilitate the squeeze out, Bamburi shares will be suspended from trading at the Nairobi Securities Exchange for 10 weeks, starting February 28, 2025. Amsons is also set to delist Bamburi from the NSE, having surpassed the 75 percent acceptance threshold needed for delisting, as reported by The Business Daily.

Kenya's coffee exports increased by 12 percent to 53,519 tonnes in 2024, up from 47,861 tonnes in 2023, with exports boosted by increased shipments to destination markets. The Kenya National Bureau of Statistics (KNBS) reported that Kenya earned Ksh38.4 billion from coffee exports, up from Ksh251 million in 2023. Capital Business reports that the bulk of exports were done in the second and third quarters. The government has introduced reforms, including prompt payments to farmers, subsidized fertilizer, and cheaper loans, expecting to double coffee output in the next four years. The top destinations for Kenya's coffee include Belgium, Germany, the United States, and South Korea, among others.