Vietnamese Gas President Says Kenya's Affordable Housing Project is Flawed

Hello Moneymakers, Kubasu here. In this newsletter, we are covering the flaws in the affordable housing projects, Equity Bank's mass firings, looming changes in the Finance Bill 2025, and 2,000 job vacancies.

Substandard Affordable Houses

A month after Vietnamese Gas President Doanh Chau accused the Kenyan government of lacking a long-term vision, he’s back, highlighting more flaws in the country’s flagship affordable housing project.

The energy leader argues that the initiative, aimed at subsidising homes for needy Kenyans, could ultimately become a long-term burden on taxpayers, undermining its intended financial benefits.

What Chau is Saying: “Kenya’s housing levy is being presented as a bold solution, but in reality, it risks becoming a long-term burden on Kenyan workers with limited returns. Taxing the employed to fund state-led housing construction is not only economically regressive—it is structurally flawed.”

“Public housing schemes, without transparency and strong institutional capacity, often produce substandard results: poor-quality units, misallocation of funds, and socially isolated communities. We’ve seen this pattern across many countries, and Kenya risks repeating it.”

Why This Matters: Chau’s remarks came on the same day President William Ruto handed over keys to 1,080 completed social housing units, with 200 other projects currently in the pipeline. Just a day earlier, the government had advertised tenders to begin constructing 20,000 more homes.

What Kenya Should Do Instead

According to Chau, the government would be more effective by:

• Investing in public infrastructure like roads,
  
  
• Developing master plans and zoning laws,
  
  
• Streamlining approval processes,
  
  
• Partnering with credible developers,
  
  
• And strengthening governance to empower the private sector to drive real estate growth.

‍View from Government: Last Friday, during an engagement with digital publishers, Treasury CS John Mbadi defended the government's involvement, arguing it was necessary after private developers exploited loopholes—using subsidised materials for high-end projects.

“If today I register that I’m building affordable housing in Ngara and enjoy exemptions on materials like cement and steel, how does the government ensure that the VAT-free cement actually ends up in Ngara—and not in a commercial building in Karen? Is that possible?” he questioned.

“Some of these exemptions don’t achieve the intended purpose. We’re just allowing tax leakages, and someone has to bear that cost, which ends up being the ordinary Kenyan who isn’t privileged enough to cheat.”

Catch Up Quick: A month ago, Chau also claimed that Kenya’s biggest issue isn’t money or talent, but leadership focused on short-term gains. He identified the electricity supply as a major barrier to investment.

“Kenya’s real problem is not a lack of money or talent. It’s the absence of long-term vision and the dominance of short-term gain. Leaders talk big, but systems don’t move. They wait for outsiders to bring business, rather than build an environment for it.”

Here are top news headlines this morning;

Equity Bank Mass Firing Over Suspicious Transactions

Equity Bank Kenya has dismissed numerous employees following an internal investigation that uncovered suspicious financial activity involving their bank and M-Pesa accounts, Business Daily reports.

The dismissals, which began last week, followed a probe launched on April 14. According to the report, the bank is taking steps to curb conflicts of interest and reinforce internal accountability among staff.

Korean Textile Firm to Create 2,000 Jobs in Kenya

South Korea’s YongWan company is set to create at least 2,000 jobs in Kenya with the near completion of its textile manufacturing plant, according to Ambassador Kang Hyungshik.

Kenyans.co.ke reports that the project is part of growing Kenya-Korea cooperation, which also includes planned partnerships in maritime, sea farming, and water infrastructure.

Kenya to Revise Budget for Third Time Over Missed Revenue Targets

The Treasury is preparing to present the third round of supplementary estimates for the 2024/25 budget — a rare move that marks the first time the national spending plan has been adjusted three times in one fiscal year since the Covid-19 era.

This latest revision, according to the Treasury, is necessary due to the government falling short of its revenue collection targets, as per Business Daily.

Govt Disburses Ksh22 Billion Capitation for Term 2 Education

The Kenyan Ministry of Education has announced the immediate release of Ksh22.03 billion for the second term’s capitation, distributed across all public basic education levels. This significant funding aims to support smooth school operations, with specific allocations for Free Primary Education, Free Day Junior School Education (including special needs), and Free Day Secondary Education.

This crucial disbursement reinforces the government's commitment to upholding the constitutional right to free and compulsory basic education. School heads are directed to utilize these funds prudently and are strictly warned against imposing any unauthorized levies, with the Ministry vowing firm action against any misuse or illegal charges.

Kenya's Agricultural Funding Crisis

Kenya's agricultural sector faces severe underfunding, contributing to low food production and high poverty, a report by People Daily has shown. Despite agriculture's significant contribution to GDP and employment, it receives only 3% of the national budget. Agriculture Cabinet Secretary Mutahi Kagwe pledged to increase this to 10% by 2025, calling current funding "unacceptable" and vital for boosting productivity and trade.

A major hurdle is Africa's $60-$100 billion annual agri-finance gap. Experts stress that agriculture is key to livelihoods and food security, not a secondary sector. Digital solutions like agri-fintech, offering insurance and loans, are crucial for supporting smallholder farmers and unlocking the region's agricultural potential.