Why Govt Did Not Subsidize July Fuel Prices - CS Opiyo Wandayi

Hello and welcome to the Money News Roundup. Today, we are covering government's explanation on why it could not subsidize the July pump prices as well as highlight the questions raised on CBK's cash printing tender and eCitizen funds.

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‍Why Govt Did Not Subsidize July Fuel Prices - CS Opiyo Wandayi

Energy CS Opiyo Wandayi has revealed that there were no funds in the Petroleum Development Levy fund to use to cushion Kenyans against the latest pump prices.

While appearing before the National Assembly Committee of Energy, the CS detailed that the government needed Ksh2.5 billion to subsidize the pump prices. However, the funds had been depleted.

As reported in the Business Daily, this was the second month, since October last year, when the subsidy was not used.

Despite pushing for the removal of fuel subsidies before the 2022 elections, the Kenya Kwanza administration has overseen the use of fuel subsidies on a number of occasions, such as the April-May 2025 period.

“For the pricing cycle July 15 to August 14, 2025, the projected amount required for stabilisation was Ksh2.5 billion. The pump pricing cycle coincided with the start of the Financial Year 2025/2026, a time at which the ministry did not have the requisite funds in their books to commit to payment of the stabilisation,” the CS explained.

On other matters related to fuel, Wandayi expressed that the pump prices would soon drop, terming the recent Ksh8 spike as a one-off situation.

As reported by Citizen Digital, the CS attributed the recent rise in pump prices to a combination of factors, including applicable taxes, global market dynamics, and increased landing costs. 

“The recent increase in fuel prices was a temporary situation. In fact, prices at the pump have generally been decreasing since July last year,” he stated.

Questions Emerge Over Where Money Collected from eCitizen is Banked 

Members of the National Assembly’s Public Accounts Committee (PAC) have summoned Treasury PS Chris Kiptoo over funds collected on the eCitizen platform.

As reported by Nation Africa, the MPs made the move after it emerged that the funds may not be reaching the Treasury account at the Central Bank of Kenya.

Therefore, the MPs want the PS to explain where the funds collected on the platform go.

While appearing before the committee, Solicitor General Shadrack Mose also confirmed that eCitizen does not provide records on how much is collected for their services rendered by the State Law.

Auditor General Questions CBK’s Ksh14.5 Billion Cash Printing Tender

The Auditor-General has flagged the Central Bank of Kenya (CBK) for breaching procurement laws by secretly awarding a Ksh14.5 billion currency printing tender to Germany’s Giesecke+Devrient without involving the Public Procurement Regulatory Authority (PPRA). 

The five-year deal, signed in April 2024, replaced long-time supplier De La Rue.

According to the Business Daily, CBK failed to comply with Regulation 84 of the Public Procurement and Asset Disposal Act, which requires PPRA to oversee classified tenders and advise the Treasury on cost, quality, and contractor suitability. 

The law is designed to prevent collusion and insider deals in high-stakes contracts. Read more on the Business Daily.

Kenya Power Fires Employees Over Ksh207 Million Fuel Scandal 

Kenya Power has fired 20 employees over misconduct and fraud that led to the loss of Ksh207 million.

 As reported by the Business Daily, some of the employees colluded with a firm tasked with supplying fuel for off-grid power stations to divert fuel. 

Investigations by the utility firm show that close to 1.16 million liters of fuel were diverted. The fuel is estimated to cost Ksh207 million. It is believed that the fuel is then sold on the black market.

Other officials were fired over the misappropriation of meters as they denied some customers meters and delivered them to other individuals.

New NSE Rules for Investors

The Nairobi Securities Exchange (NSE) has introduced new trading rules allowing investors to buy or sell as little as one share, down from the previous minimum of 100 shares. 

This move marks a shift from the traditional normal and odd lots boards by enabling smaller trades on the main board, which were previously restricted to limit orders under less flexible conditions.

The changes aim to enhance market access, particularly for retail investors who may not afford bulk purchases. Investors can now freely trade high-priced stocks in smaller quantities, making it easier to diversify portfolios and liquidate leftover shares from rights issues. 

However, the share buying process through brokers remains unchanged.

Read more on the rules and their impact here.