Greetings and welcome to the Seventh Money Weekly Roundup of 2025! 

This Week in Money News: Kenya’s financial landscape saw major budget shifts — from a Ksh7.5B boost for the police service, including Ksh2.5 B for the Haiti security mission, to a proposed pension law set to lock retirement savings until age 50.

Meanwhile, Government agencies overshot their budgets by Ksh52.13B in the first half of the financial year, with significant overruns in travel and hospitality spending. We also track rising fuel prices, SACCO restructuring, and key changes in county budget priorities.

As always, we’ve included some of our favourite personal finance articles in our Finance Tips section below.

Let’s dive in.

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NEWS RECAP

What happened this week

📊 Ksh2.5 Billion Set for Haiti Mission

Kenya's National Police Service received a Ksh7.5 billion allocation in the latest supplementary budget:

• Ksh2.5 billion will fund the Haiti security mission.

• The mission, aimed at combating gang violence, has cost taxpayers Ksh4.5 billion over nine months.

• Though some costs may later be reimbursed by the UN, Kenya is currently covering expenses such as equipment, allowances, and logistics.

President Ruto reaffirmed U.S. support for the mission despite broader U.S. aid freezes.

🆔 National IDs Now Free of Charge

President William Ruto announced that Kenyans will now get:

• Free national identity cards for first-time applicants (previously Ksh300).

• Free ID replacements (previously Ksh1,000).

Speaking in Kibra, Ruto emphasized that the issuance of IDs will be non-discriminatory. Immigration PS Julius Bitok added that marginalized groups — including border communities, prisoners, and students — will be prioritized in a new registration drive aimed at boosting SHA access.

💸 KUSCCO’s Ksh13.3 Billion Scandal Restructuring Plans 

The Kenya Union of Savings and Credit Cooperatives (KUSCCO) is restructuring after a Ksh13.3 billion scandal:

• Selling a majority stake in KUSCCO Mutual Assurance.

• Auctioning houses and land from loan defaulters to repay SACCOs affected by the scandal.

• Replacing the Central Finance Fund (CFF) with a new Sacco Liquidity Fund (SLF) regulated by SASRA.

A PwC audit flagged financial irregularities in the KUSCCO Homes Project (valued at Ksh1.5 billion):

• Ksh18 million in cash allowances paid to board members for site visits.

• Tender awards done via email, bypassing competitive processes.

• Ksh1.16 billion paid to 16 contractors without proper procurement documentation.

• Project costs exceeded the budget by 90%.

• Ksh2.7 million paid by a contractor to a KUSCCO audit manager — raising conflict of interest concerns.

Despite the scandal, Kenya’s top SACCOs increased dividend payouts by 13.7% to Ksh46.99 billion in 2024.

⛽ Fuel Prices to Rise as EPRA Raises Oil Marketers’ Margins

Fuel prices will rise after EPRA approved the first margin increase for oil marketers since 2018:

• Petrol: Up Ksh7.80 per litre.

• Diesel: Up Ksh7.75 per litre.

• Kerosene: Up Ksh7.67 per litre.

The hike includes:

• Ksh4.59 increase in retailer margins.

• Ksh0.69 financing surcharge.

• Adjustments to wholesaler, transport, and storage margins.

EPRA says the move aims to prevent small oil marketers from collapsing due to rising inflation and holding costs.

💸KRA Tax Evasion Scheme in Eastleigh

The Kenya Revenue Authority (KRA) arrested 18 individuals in Eastleigh for:

• Misdeclaring goods as transit cargo to evade import duties.

• Swapping truck registration plates and tampering with KRA’s tracking seals.

One intercepted consignment carried a tax liability of Ksh3.5 million. Investigations linked a key suspect to nine similar cases, adding up to Ksh21.9 million in lost taxes.

Authorities are also probing Eastleigh’s heavy use of cash transactions, suspecting it helps businesses hide revenue and avoid taxes.

⚖️Court Blocks DCI Probe Into National Police SACCO

The High Court has stopped the DCI from investigating alleged embezzlement at the National Police SACCO.

• The DCI had secured warrants to access board members’ financial records and procurement documents.

• However, SACCO officials argued that only SASRA and the Sacco Societies Fraud Investigations Unit (SSFIU) have legal oversight under the Sacco Societies Act.

The National Police SACCO holds Ksh34 billion in deposits and Ksh58 billion in assets with 75,000 members — raising fears that the probe could trigger depositor panic.

🏗️ Rironi-Mau Summit Road Expansion Starts in June

The Ksh180 billion expansion of the Rironi-Mau Summit Road is set to kick off this June:

• Upgrading the 170-km Nairobi-Nakuru route into a four-lane dual carriageway.

• Aims to ease congestion on the busy corridor used for regional trade and travel.

The project, previously halted after President Ruto canceled a French consortium’s contract, now moves forward under a new plan approved by the Cabinet and should take 2 years.

🏦CBK to Increase Bank Licensing Fees 

The Central Bank of Kenya (CBK) plans to raise bank licensing fees 22-fold to Ksh7.5 billion by 2027:

• Shifting from a flat fee model to charging banks 1% of gross revenue.

• Implementation will start at 0.6% in 2025, rising to 1% by 2027.

Large banks like Equity and KCB may each pay over Ksh1.6 billion annually.

The Kenya Bankers Association warns the cost may be passed to borrowers through higher loan rates.

📜Proposed Pension Law

The Retirement Benefits Authority (RBA) has proposed changes to pension laws:

• Workers below 50 years would no longer withdraw up to 50% of their pensions when changing jobs.

The plan aims to curb early withdrawals. If approved, the law takes effect in July 2025.

• Delayed Pension Payments: A report by the Auditor-General reveals that the National Treasury has yet to disburse Ksh7.1 billion in pension payments, with some retirees waiting over 10 years for their funds. The backlog has left many retirees struggling financially, with some having passed away before receiving their benefits.

• The government plans to integrate the Hustler Pension Scheme with SACCOs to support retirement savings for informal sector workers. SACCOs will serve as a savings channel, allowing members to contribute voluntarily while the Treasury matches Ksh1 for every Ksh2 saved. 5% of every Hustler Fund loan borrowed will be allocated toward retirement savings. The government has requested Ksh500 million to fund the programme, aiming to boost financial inclusion and strengthen SACCOs.

💵 Government Spending

At least 18 government agencies — including State House and the National Intelligence Service (NIS) — overshot their budgets by Ksh52.13 billion in the first half of the current financial year. This comes despite Treasury data showing recurrent expenditure fell by 7.6% to Ksh746 billion.

✈️ Travel & Hospitality Expenditures
Government travel expenses for the first half of FY 2024/25 hit Ksh9.56 billion:

• MPs: Ksh3.89 billion

• Presidency (President, Deputy President, State House, Prime Cabinet Secretary): Ksh543.4 million

• Ministry of Foreign Affairs: Ksh1.59 billion

• Ministry of Interior: Ksh1.17 billion

• Auditor-General: Ksh628.6 million

• Hospitality spending: Ksh2.09 billion across various government offices.

🌍 Counties & Budget Priorities

A report by the Controller of Budget flagged county spending on non-essential items, diverting funds from development projects:

• Nairobi: Ksh897.82 million on garbage collection and Ksh719.2 million on legal fees.

• Machakos & Homa Bay: Ksh64.02 million on the Governor’s Cup.

• Other counties: Heavy spending on office supplies, insurance, routine maintenance, and hospitality.

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MONEY TIPS & TOOLS

This week’s finance tips

Welcome to Money254's Money Tips! Here, we share quick and easy tips that make understanding and managing your money a breeze. We break down the tricky parts of your finances and the financial landscape, making it simple and clear for you. Stay tuned for helpful tips every week.

MONEY254 #MONEYTOK OF THE WEEK

𝐓𝐨𝐩 𝐌𝐌𝐅𝐬, 𝐁𝐚𝐬𝐞𝐝 𝐨𝐧 𝐅𝐞𝐛 𝟐𝟎𝟐𝟓 𝐑𝐞𝐭𝐮𝐫𝐧𝐬

With Money Market Fund rates continuing to decline — now averaging 11.93% in February (down from 12.19% in January) — many investors are asking which funds are still offering the best returns.

Here is how MMFs performed last month:

@money254hq

𝐓𝐨𝐩 𝐌𝐌𝐅𝐬, 𝐁𝐚𝐬𝐞𝐝 𝐨𝐧 𝐅𝐞𝐛 𝟐𝟎𝟐𝟓 𝐑𝐞𝐭𝐮𝐫𝐧𝐬 With Money Market Fund rates continuing to decline — now averaging 11.93% in February (down from 12.19... See more

That’s a wrap for this week’s Money Weekly!

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Tony and the Money254 editorial team.