Ksh784 Trillion State House Blunder, 188 SACCOs Breach Loan Rule

Hello and welcome to the Money Weekly Newsletter, where we cover the State House’s mistake in uploading a Ksh784 trillion budget on the new procurement system.

But first, a word from our sponsoring partner, Mwananchi Credit.

Sponsored Content

Picture this: You have put everything into a deal with huge potential, but a sudden cash crunch threatens to wipe it all out.

With Mwananchi Credit, your car’s logbook can unlock up to Ksh25 million in just 6 hours. Get the fastest logbook loan in Kenya with affordable 3% interest. Apply Now.

Ksh784 Trillion State House Procurement Blunder

State House erroneously submitted a Ksh784 trillion procurement plan on the new electronic government procurement (e-GP) system, raising questions as to whether the system, designed to curb tendering fraud, will work effectively

The Executive Office of the President uploaded plans detailing the estimated expenditure of Ksh784.3 trillion, which is 50 times Kenya’s GDP.

This is even though Parliament had only approved a Ksh5.57 billion budget for the year ending June 2026. 

The erroneous entries included Ksh684 trillion for construction services, Ksh55 trillion for travel, and Ksh25.89 trillion for transport and storage. 

The e-GP system was procured by the national government in April 2022 at approximately Ksh375 million from an Indian firm.

Led by Treasury CS John Mbadi, the National Treasury had directed all government institutions to enroll in the new system as it pushed for transparency and accountability in procurement.

The e-GP system is expected to handle Ksh1 trillion in procurements this fiscal year.

“The eGP system will transform how government entities procure goods and services by sealing loopholes that have long enabled waste and corruption,” Mbadi stated during a past media briefing.

According to the CS, the system has been integrated with the Kenya Revenue Authority’s (KRA) iTax platform to catch up with companies that avoid paying taxes.

“This linkage between eGP and iTax will cure long-standing challenges in tax evasion by ensuring that every procurement transaction is traceable and verifiable,” Mbadi explained.

Here is a quick recap of the top money news for the week:

188 SACCOs Breach Loan Rule 

The Sacco Societies Regulatory Authority (SASRA) has flagged 188 SACCOs for exceeding the loan default rate rule of 5%. In its annual report for 2024, SASRA noted that 109 Deposit Taking SACCOs had their defaults above the set 5% while 79 Non-Withdrawable Deposit Taking SACCOs (NWDT-SACCOs) were found to be in breach.

Due to the increased defaults, SASRA urged SACCOs to increase their loan recoveries to reduce their financial risks.

Catch Up on More News

WEEKLY MONEY TIPS

MONEY254 #MONEYTOK

5 Tips to Automate Your Finances So You Don’t Worry About Savings

Have you ever found yourself earning good money but still struggling to save — or even needing to borrow to make ends meet? The difference between those who build wealth and those who struggle often comes down to one thing: how they manage their money.

Automating both your savings and expenses takes the stress out of budgeting. Imagine your rent, savings, and investments all being handled automatically the moment your salary hits your account. This video breaks it all down.

@money254hq

𝟓 𝐓𝐢𝐩𝐬 𝐭𝐨 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐞 𝐘𝐨𝐮𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐞𝐬 𝐒𝐨 𝐘𝐨𝐮 𝐃𝐨𝐧’𝐭 𝐖𝐨𝐫𝐫𝐲 𝐀𝐛𝐨𝐮𝐭 𝐒𝐚𝐯𝐢𝐧𝐠𝐬 Have you ever found yourself earning good money but still struggling to ... See more

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

Remember that we can help you compare over 300 loans, savings accounts, current accounts, and more on our website if you’re thinking about your next product.