Why Teachers & Police Officers Will Be Blocked From Early Pension Access

Hello and welcome to the Money News Roundup Newsletter, where we cover a new proposal blocking teachers and police officers from early access to their pension funds, a new digital bond trading platform, and unfit cooking oil seized.

Police Officers & Teachers to Lose Early Access to Pension Funds

A new proposal by National Assembly Majority Leader Kimani Ichung'wah seeks to block teachers, police officers, National Youth Service (NYS) officers, and other civil servants from accessing their pension funds in full before the retirement age.

According to Business Daily, the new rule is aimed at promoting adequacy of retirement savings for members, currently standing at 442,929 from 137 employers. If passed, civil servants in the Public Service Superannuation Scheme Fund (PSSF) will only be allowed to access 50% of their pension contributions if they leave their state jobs for reasons other than retirement. At present, some categories of civil servants, including police officers and teachers, can withdraw all their contributions if they leave before reaching retirement age.

The proposal reads: "The Principal Act (Public Service Superannuation Scheme Act) is amended by repealing section 26 and replacing it with the following new section—A member may access accrued retirement savings on leaving employment before retirement in accordance with the Retirement Benefits Act."

The PSSF began operations in 2021. Civil servants contribute 7.5% of their gross salaries to the fund, with the government matching this at 15%. All employees who were 45 years or younger when the PSSF began operations, as well as new hires, are required to make mandatory contributions.

Govt to Roll Out New Digital Bond Retail System Next Year

The Central Bank of Kenya (CBK) will roll out a digital bond retail system by June 2026. Governor Kamau Thugge said the platform will include a user-friendly interface, retail depository, and efficient payment features, with the capacity to process 40 million transactions at once. The State aims to raise Ksh635.5 billion from the domestic market this financial year to cover a Ksh923.2 billion revenue gap.

According to Daily Nation, the shift comes amid reduced external financing after the IMF ended a $3.6 billion programme early and the World Bank delayed a $750 million loan. Dr Thugge noted that 77 percent of Kenya’s Ksh6.16 trillion domestic debt is held by banks, pension funds, and insurers, stressing the need to expand retail participation. Previous efforts included the 2017 M-Akiba bond.

Catch Up Quick: Currently, investors can only buy government bonds through the DhowCSD app, with the minimum investment set at Ksh50,000.

Ksh100 Million Worth of Unfit Cooking Oil Seized in Mombasa

The Anti-Counterfeit Authority, in partnership with other agencies, raided a facility in Mombasa where cooking oil jerricans of different brands valued at Ksh100 million had been smuggled into the country. The oil was found to be unfit for human consumption.

"We want to inform the general public to be very careful with what they consume because the conditions under which this oil is being processed are pathetic and unhealthy. This could be the reason why cases of serious chronic diseases are emerging," one of the agency heads told Citizen TV. The owner of the facility is still at large.

Fresh Fight Over SportPesa Trademark Lands at Registrar

The battle for the SportPesa trademark has escalated to the Office of the Registrar of Trademarks after shareholder Paul Wanderi Ndung’u filed a suit alleging fraudulent transfer, forgery, and tax evasion. Ndung’u, who owns a 17 percent stake in Pevans East Africa, wants the transfer of the brand from Pevans to UK-based SportPesa Global Holdings Limited (SPGHL) — and later to Milestone Games — reversed, citing irregular approvals and missing documents. He argues that the Registrar facilitated the illegal transfer of two trademarks valued at Sh17.3 million each without stamp duty being paid.

According to Business Daily, Ndung’u also claims SPGHL was not registered in Kenya and could not legally pay stamp duty, making the transfer null and void. He points to the company’s financial statements, which do not reflect payment for the trademarks, as proof of fraud. The case pits Ndung’u and fellow shareholder Asenath Wachera against CEO Ronald Karauri and allies, who insist the High Court — not the Registrar — should handle the dispute.

Digital Lenders Give 5.5 Million Loans to Kenyans, Rivaling Banks

Kenya’s digital lending industry continues to expand despite tighter regulations introduced to curb malpractices. The Central Bank of Kenya (CBK) says licensed digital credit providers (DCPs) had issued 5.5 million loans worth Sh76.8 billion by June 2025, slowly rivalling banks as a lending source for households and small businesses. Currently, 153 DCPs are licensed, with 547 more awaiting approval under stricter requirements, including proof of at least Sh20 million in capital.

According to Business Daily, digital lenders remain dogged by controversies despite being under the watch of CBK, the Data Protection Commissioner, and the Competition Authority of Kenya. The sector accounted for nearly a third of consumer complaints last year, with issues ranging from exorbitant interest rates to aggressive debt recovery tactics. Regulators have moved to sanction errant players, including calls for revoking licenses of repeat offenders.

Kenya Faces Job Loss Threat as AGOA Nears Expiry

Mass job losses are looming in Kenya as the African Growth and Opportunity Act (AGOA) approaches its expiry on September 30. The Star estimates that 660,000 Kenyans could be negatively affected if a last-minute decision to renew or restructure the agreement is not made within the next seven days.

Meanwhile, Business Daily reports that diaspora remittances from Australia jumped by nearly half in the first six months of 2025 to Ksh14.58 billion, overtaking inflows from Saudi Arabia and Germany. This signals that Australia has become an increasingly strong labour market for Kenya’s skilled workforce.

Wave of Insolvencies: Njeru Industries and Tecof Fall Within Days

Njeru Industries Limited has been placed under administration following a court order under the Insolvency Act No. 18 of 2015, effective September 3, 2025, Capital FM reports. PVR Rao and Swaroop Rao Ponangipalli were appointed as joint administrators under Insolvency Cause No. IP E048 of 2025, taking full control of the company’s business and assets while stripping directors of their powers. Creditors and claimants have until September 30 to submit claims with supporting documentation.

The move came just two days before Tecof Limited was also placed under administration, underscoring a rising number of Kenyan firms seeking protection under the insolvency framework as financial distress spreads across industries.

Kenya Spends More on Domestic Debt Interest Than Development

Taxpayers paid an extra Sh98.1 billion in interest on domestic debt in the year to June 2025, raising the bill to Sh632.3 billion, the highest in over five years, according to Controller of Budget (CoB) Margaret Nyakang’o. The interest costs were higher than the Sh545.8 billion spent on all development projects and nearly matched the entire education budget. Four months alone accounted for Sh301 billion in interest—more than what was spent on roads, housing, agriculture, energy, and transport combined.

The CoB warned that reliance on short-term loans such as treasury bills is raising refinancing risks and could push Kenya into a debt trap. Domestic debt now makes up 54 percent of Kenya’s Sh11.7 trillion public debt. Of the Sh992.4 billion spent on servicing domestic debt in 2024/25, two-thirds went to interest, reports Business Daily.

MPs Probe Troubled Social Health Authority System

Parliament’s Health Committee has launched a nationwide fact-finding mission into the Social Health Authority (SHA) system over complaints of delayed claims, rejected payments, and alleged fraud. Committee chair Dr. James Nyikal said the issues risk derailing the government’s universal health coverage plan, noting that the transition from the defunct NHIF to SHA has created confusion for hospitals and patients.

Nyikal said registration and claims systems exist but remain poorly understood, with many claims delayed or rejected and follow-up made difficult by the lack of local SHA offices. He added that while premiums are being collected, access to services remains restricted, leaving members frustrated and funds underutilized, reports People Daily.