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

This Week in Money News: This week, revelations of firms pocketing billions and public disputes over unpaid fees have dominated headlines. On Top of that, salaried Kenyans are taking home less net pay due to the new NSSF deductions.

Meanwhile, 54 Collective - a venture capital firm has closed, there are more SACCO scandals, and plans for affordable housing signal changes in Kenya’s financial and public sectors.

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

Let’s dive in.

NEWS RECAP

What happened this week

🖥️ eCitizen Platform Earnings Under Scrutiny

Private firms running the government’s eCitizen platform pocketed Ksh1.45 billion in the year ended June 2024, with scant details on their operations and owners.

• The Auditor-General revealed that these companies handled over 11 million transactions, earning Ksh591.9 million from a Ksh50 convenience fee and Ksh857 million for system maintenance.

• MPs are pressing the Treasury to disclose details of the firms.

⚡ Nairobi County vs. Kenya Power Standoff

A dispute has escalated as Nairobi County dumped garbage at Kenya Power’s headquarters at Stima Plaza in protest over unpaid wayleave fees of Ksh4.8 billion.

• Kenya Power claims the county owes Ksh3.1 billion in electricity bills, leading to power disconnections, water cuts, and sewer blocks, with both sides blaming each other for payment failures.

💼 54 Collective Shuts Down Africa Ops

Venture capital firm 54 Collective will cease its Africa operations, including in Kenya, starting April 30 as its funding from the Mastercard Foundation ends.

• The firm’s portfolio in Kenya, which includes startups like Wingi, Zanifu, and Zuri Health, supported early-stage tech growth, but the funding cut forced a major strategic shift.

Salaried Kenyans Take-Home Pay with New NSSF Deductions
This week, the third phase of the NSSF Act 2013 takes effect, leading to higher mandatory contributions that will reduce net pay for employees across Kenya. While the changes aim to secure better retirement benefits, both employers and workers will feel the pinch as deductions increase.

• New Contribution Limits:

  The lower pensionable income limit rises from Ksh7,000 to Ksh8,000.

  • The upper limit doubles from Ksh36,000 to Ksh72,000, increasing overall NSSF deductions from Ksh2,160 to Ksh4,320 (employee and employer contributions combined).

• Impact on Salaries:

  • A salary of Ksh50,000 will see contributions increase from Ksh2,160 to Ksh3,000, reducing net pay from Ksh39,617 to Ksh39,029.

  • For an 80,000 earner, contributions jump from Ksh2,160 to Ksh4,320, lowering net pay from Ksh59,724 to Ksh58,212.

• Employer Burden:

  • Employers must match employee contributions, which will strain cash flows, especially for SMEs.

🏦 Mhasibu SACCO Takes Ksh480.6 Million Hit

Mhasibu SACCO is one of the largest casualties of the KUSCCO fraud - losing Ksh480 million fixed deposit account and other savings. According to the SACCO,  KUSCCO failed to honour a fixed deposit withdrawal request that matured on January 16, 2024.

• The Law Society of Kenya SACCO Society Ltd managed to recover Ksh42.18 million from Ksh61.44 million, and Mhasibu Sacco has taken KUSCCO to court over the matter.

💸 Energy Sacco Fraud Exposed

A forensic audit uncovered a fraudulent scheme at Energy Sacco, where collusion among staff and members led to the embezzlement of Ksh82.36 million through ghost shareholding, fictitious loans, and manipulated records.

• Some members accessed loans up to ten times the permitted limit, and suspicious transactions, including a Ksh5.1 million payment under 11 names, have raised serious concerns over financial mismanagement.

🏠 Athi River Affordable Housing Project

The government plans to raise Ksh9.2 billion in private funding to construct 2,320 low-cost rental units in the first phase of the Athi River Affordable Housing Project, part of a broader Ksh70 billion PPP plan for 2025/26.

• Set on 23 acres owned by the National Housing Corporation in Mavoko, the project aims to deliver 10,500 houses in three phases, with developers also responsible for supporting infrastructure.

📈 Tax Increases for 2025/26 on the Horizon

To reduce borrowing for a record-high Ksh4.2 trillion budget, the government is set to increase taxes in the 2025/26 financial year.

• The Treasury has raised its tax collection target to Ksh2.8 trillion, focusing spending on recurrent expenditure, which could lead to higher taxes on payslips and basic commodities.

🏥 Private Hospitals Drop SHA Cover

Private hospitals have stopped accepting the Social Health Authority (SHA) cover, forcing patients to pay cash or seek treatment elsewhere.

• The Kenya Association of Private Hospitals attributes the move to a Ksh30 billion debt from the defunct NHIF, reimbursement delays, and unclear operational procedures under SHA.

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

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Tony and the Money254 editorial team.