Why SACCOS Are Slashing Dividend Payouts

Hello and welcome to the Money News Roundup Newsletter, where we are covering why SACCO members will be receiving lower dividends. We also cover new regulations that will require Kenyans to submit their DNA for SIM card registrations.

Why SACCOS Are Slashing Dividend Payouts

Savings and credit cooperatives (SACCOS) are cutting dividend payouts and retaining more cash as stricter regulations push them to strengthen their financial buffers. 

New disclosures covered by the Business Daily show that capital adequacy ratios improved in the year to June 2025, rising to 17.8% for deposit-taking saccos and 18.52% for non-withdrawable DT saccos - both above the Sacco Societies Regulatory Authority (SASRA) minimum requirements.

The regulator attributed the improvement to increased income retention and restrictions on unrealistic dividend payments.

The shift follows a tougher stance by SASRA , the Ministry of Co-operatives, and the Commissioner of Co-operatives, who last year warned SACCOS against exaggerating income and paying excessive bonuses or dividends. 

The KUSCCO scandal, which exposed saccos to potential losses of over Ksh8.8 billion, further intensified pressure for stronger capital planning and risk management.

While larger saccos are adjusting comfortably, smaller societies face challenges balancing capital retention with member expectations. Sasra says members should not pressure for higher payouts since saccos still offer cheaper loans than other lenders.

Lower dividends and interest payouts in 2024 helped boost retained earnings, with capital reserves rising 17.55% to Ksh197.54 billion. Despite reduced rates, total payouts still grew by 8.5% to Ksh59.74 billion, showing continued value for members.

Kenyans to Submit DNA for SIM Card Registrations in New Proposal

Kenyans registering new SIM cards may soon be required to provide biometric data, including DNA details, blood type, fingerprints, and retinal scans, under new regulations proposed by the Communications Authority of Kenya (CA).

The rules, which carry penalties of up to Ksh1 million or six months in jail for non-compliance, dramatically widen the data telcos must collect.

Kenyans have already begun to protest the proposal, warning that operators lack the capacity to securely manage such intimate information, raising major privacy risks and potential violations of Kenya’s Data Protection Act, which requires data minimisation. 

As reported by the Business Daily, the regulations also compel telcos to maintain and routinely submit biometric databases to the CA, a move critics say could erode public trust and expose millions to misuse of personal data.

How EPRA Cushioned Motorists From Higher Diesel Prices in November Review

The State has more than doubled the diesel subsidy to Ksh2.33 per litre in the pricing cycle to November 14, helping keep pump prices unchanged despite rising global fuel costs.

Diesel, which would have increased above the current Ksh171.47 per litre, saw import prices rise 1.81 percent to $635.05 per cubic metre. The government also applied subsidies of Ksh0.48 on petrol and Ksh4.24 on kerosene, maintaining prices at Ksh184.52 and Ksh154.78, respectively.

These are the highest subsidy levels in seven months and come as Kenya battles inflation, which has held at 4.6 percent for two months. With diesel driving most economic sectors, stabilising fuel prices remains key to containing inflation and protecting consumers. Read more.

Outrage as Nairobi Officer Spray-Paints Car to Enforce Parking Rules

Kenyans online are outraged after a viral video showed an unidentified officer spray-painting a parked car in Nairobi. The clip captures the officer calmly writing “Remove 13:11:2025. N.C.C.G” across the rear window as colleagues look on. 

As detailed by the Star, Many Kenyans questioned why an officer would deface private property instead of using legally recognised enforcement methods such as clamping or towing. 

Social media users condemned the act as vandalism and “malicious damage,” arguing that if it is a new enforcement measure, it is unlawful.

Under Nairobi County and national traffic laws, illegally parked cars may be clamped or towed—not spray-painted—with owners required to pay prescribed penalties before release.

UK Issues Alert as Scammers Target Kenyan Visa Applicants

Kenyans applying for UK visas have been warned about a growing scam targeting applicants through fake phone calls, emails, and websites. 

The British High Commission says fraudsters are impersonating Home Office officials, claiming there are issues with applications before demanding money or personal details. Criminals use official-sounding language, forged documents, and even fake job offers to appear legitimate. 

As reported by Kenyans.co.ke, some scammers also pretend to be visa officers visiting homes or calling students to request payments via money transfer platforms. 

Others ask for “proof of funds” deposits, which the UK government never requires. Applicants are urged to verify emails ending in gov.uk, avoid offers that seem too easy, and report suspected fraud to Action Fraud or local authorities.

Jumia Lays Off 100+ Staff as It Shifts to AI to Reduce Costs

E-commerce firm Jumia has cut jobs after adopting artificial intelligence (AI) across customer service, marketing, and tech operations to reduce costs.

The New York Stock Exchange-listed company revealed it has reduced its workforce by over 100 roles (7%) in the nine months to September 2025.

As reported in the Business Daily,  Jumia now has just over 2,010 employees, down from 2,163 in December 2024.

The company says AI-driven workflows have streamlined operations and supported a leaner cost structure as it struggles to achieve profitability. 

Jumia, which operates in Kenya and eight other African markets, recorded a Ksh2.25 billion  (USD17.4 million) operating loss in Q3. The firm has also exited markets like South Africa and Tunisia and previously discontinued grocery and food delivery services.

EPRA Orders Easy Coach and ENA Coach to Stop Picking and Dropping at Petrol Stations

The Energy and Petroleum Regulatory Authority (EPRA) has ordered long-distance operators, including Easy Coach and ENA Coach, to stop picking up and dropping off passengers at petrol stations within Nairobi’s CBD.

Thirteen transport companies have now moved to the High Court, arguing that the ban is abrupt, unlawful, and economically damaging, especially during the busy festive season. 

As reported in Citizen Digital, the operators warn that the enforcement could disrupt services, leave thousands of commuters stranded, and cause massive financial losses.

Through lawyers Stanley Kinyanjui and Danstan Omari, the operators say no safety incidents justify the ban and question why Nairobi routes are being targeted while similar operations continue elsewhere. They are seeking urgent conservatory orders to halt the directive.

Peter Munga Clashes with Chinese Investors in Ksh3.9 Trillion Kitui Coal Mine

As reported in the Business Daily, a company linked to tycoons Peter Munga and George Kariithi is embroiled in a fierce dispute with China’s Fenxi Mining Industry Co. Ltd over ownership of the Ksh3.9 trillion Mui Basin coal mines in Kitui. 

Fenxi accuses the government of allowing the duo to obstruct its 21-year concession and has issued a 60-day default notice, warning of arbitration in Mauritius. 

The Chinese firm says Great Lakes Corporation, owned by Munga and Kariithi, was dropped in 2018 for failing to pay its Ksh500 million share of concession fees. However, the tycoons insist the concession belongs to their consortium with Fenxi. 

Despite an Attorney-General opinion affirming Fenxi as the rightful concessionaire, the dispute has stalled mining for over a decade.

Safaricom to Sell Starlink Services In New Agreement

As reported by Nation, Safaricom has struck a deal with Elon Musk’s Starlink after Vodacom, its parent company, signed an Africa-wide agreement allowing resale of the US firm’s satellite data and equipment. 

The move ends a previous dispute where Safaricom opposed Starlink in Kenya over security and network interference concerns. 

Under the deal, Safaricom and Vodacom affiliates in South Africa, Tanzania, and Egypt can resell Starlink services and integrate its satellite technology into mobile networks, boosting rural coverage in Kenya and Ethiopia. 

The telco will continue working with AST SpaceMobile and other providers, sharing revenues 50-50 with AST. 

Starlink’s competitive packages and lower hardware costs have increased market competition, prompting partnerships with local operators to expand internet access.