Kenya Insights

Author: John Bosco

  • 70 Gambling Mpesa Paybills Suspended by BCLB.

    70 Gambling Mpesa Paybills Suspended by BCLB.

    The Betting Control and Licensing Board (BCLB) has suspended 70 M-Pesa pay bill numbers for unlicensed or unauthorised gaming activities run through broadcast channels.

    The BCLB tabled the list during a meeting with the National Assembly’s ICT committee which had directed BCLB to prove that the unlicensed gaming activities that are being run on radio and TV stations using playbill numbers issued by telecommunications companies were deactivated.

    The BLCB told the committee chaired by Mr William Kisang that it had directed giant telco Safaricom to deactivate the pay bill numbers.

    “The board directed Safaricom PLC to suspend the…pay bill numbers on diverse dates between December 2020 and August 2021,” said BCLB chief executive Peter Mbugi.

    He said the 70 pay bill numbers were suspended as at December 22, 2020.

    He added that although BCLB had not conducted any study, it was possible that the gaming activities by the media can have harmful impact on the public, especially children.

    “The board has on several occasions picked this matter with media houses and has also been working with the Communications Authority (CA) to curb the unauthorised promotions and advertisements,” he said.

    Mr Mbugi told the ICT team that the board in collaboration with the CA is reviewing the gaming advertisement guidelines and content to address emerging threats.

    The BCLB and the CA acting director-general Mercy Wanjau appeared before the committee to explain the reasons behind the rampant betting and gambling in the broadcast media and its effects to the public.

    The committee said unscrupulous operators had infiltrated the gaming sector.

    Ms Wanjau told MPs that broadcasters are responsible for advertising material transmitted by their stations and must therefore ensure that all advertisements are legal, honest, decent, truthful, and conform to the rules of fair competition.

    Mr Kisang said tasked the two regulators to furnish the committee with further information regarding the list of media outlets, paybill numbers and the period the operators have been running the paybill numbers.

    The committee has also asked the regulators to furnish it with details on any taxes avoided or evaded by the operators and the status of the crackdown on unscrupulous operators in the gaming sector across the media.

    The ICT committee is seeking to introduce a raft of amendments to the existing gaming and betting law to arrest the runaway emergence of betting and gaming propagated by the broadcast media across the country.

    The Committee is now proposing several changes to institute measures that will curb harmful effects on unsuspecting Kenyans.

    The committee is collecting stakeholder views involved in regulating the betting and games industry before proposing further amendments to the Gaming Bill, 2019 which is set for Committee Stage in the House.

    The Bill has already been approved at the Second Reading and is awaiting consideration at the Committee Stage.

    BD.

  • PARADISE LOST!

    PARADISE LOST!

    Well, Paradise lost to a non-Kenyan might think of the John Milton’s poem but to a local Kenyan, known Paradise lost is the recreational site located in Kiambu for nature lovers looking for a tranquil site. But behind the tranquility, there lies two court battles amongst the owners of the site.

    It all began When Mbugua Mwangi died in 1998 while his wife Christine Mithiri Mbugua died on April 6, 2017, in Lilavati Hospital and Research Centre, India without a will. The absence of a will has created a rift within the deceased children where by some among the siblings have resolved to foul play to get the lion’s share.

    The three siblings, Daniel Mwangi Mbugua, Isaac Gichia Mbugua and Joseph Mbai Mbugua in one of the cases before a commercial court did attest that they cannot stick together to run a holding company- Ndunde Investments Ltd, left behind by their parents.

    Mbugua Mwangi and Christine Mithiri Mbugua, owned thousands of acres of prime land, including at least 2,475 acres in Laikipia County and more than 165 acres in Kiambu. They also owned an acre in Karen, another half-acre in Runda, 25 apartments in Kangemi and 260 acres in Kiambu Misarara Farm. Christine’s wealth is estimated to be Sh2.1 billion. This includes shares in Ndunde Investments Ltd, Mbuchia Investments Ltd and Mbumi Coffee Mills Farm along Kiambu Road.

    The paradise is now lost in legal wars, with Daniel now telling the court that his lawyer illegally entered a consent with his siblings to dissolve Ndunde Investments without his knowledge. On March 5, 2019, Daniel who is the eldest son of the patriarch sued Isaac and Joseph over Ndunde Investments.

    According to him, sometime on November 27, 2020, his daughter Wanjiru Mwangi went to peruse the court file only to find that her father’s lawyer had entered a consent on September 27, 2020.

    “…The consent would appear to be irregular in the following respects. It purports to wind up Ndunde Investments Limited yet I had not in my plaint asked the company to be wound up,” he argues.

    “The consent order purports to administer and share out the estate of my mother Christine Mithiri Mbugua who was a shareholder and director in the company yet there were no succession proceedings.”

    Daniel argues that the firm cannot be wound up as the assets to be distributed have not be valued to ascertain their worth. He accused Isaac and Joseph of planning to sell some of the land under Ndunde Investments to Kencom Sacco.

    “It is indicated that the liabilities of the company are to be paid by the company yet it is not shown from what assets after it has been distributed to shareholders,” Daniel said. In their reply, Isaac and Joseph narrate that they, Daniel and their mother, Christine, owned Ndunde Investment.

    The firm had four directors. Isaac says that they decided to part ways by dissolving the family company due to the incessant court battles. He argues they agreed to share the wealth equally. While defending the lawyer, Isaac asserts that the advocate was under instructions to represent their elder sibling Daniel to a fair conclusion of the case.

    He argued that their elder brother was involved in negotiations and had not lost anything, as the distribution is equal and in line with the wishes of their mother. “The issue had been discussed between parties herein and an agreement reached to effect that each shareholder would share 25 per cent of the company assets,” Isaac replied on June 15, 2021.

    “Though the plaintiff alleges that he only learned of the consent order 21 days after the same was recorded which is false, he has not availed any evidence to support his allegation thus the burden of proof is on him.” On September 23, 2020, Justice Wilfrida Okwany heard the case.

    Justice Okwany ordered that Ndunde assets be subdivided and distributed equally between its four directors – Daniel, Isaac, Joseph and their mother Christine. She directed that the estate would be distributed in accordance with a succession case filed before the Family Court.

    In the consent, which is now at the heart of the case, it was agreed that Christine’s share in the company should be shared equally among her children. “The company to settle the liabilities of the company if any. Upon the parties’ successful distribution of the assets and paying liabilities, the company will stand dissolved,” ruled Justice Okwany.

    The judge set a schedule which each party would get a share of the matriarch’s wealth.

    Meanwhile, Daniel is not only pursuing his siblings before the commercial court. He has a separate case filed before the Family Court. In the case before Asenath Ongeri, he wants the court to compel the four administrators appointed to manage the estate to provide a full inventory of their parents’ assets and liabilities.

    Daniel also asked the court to appoint him as a co-administrator, arguing that he would protect the interests of all beneficiaries. From the court records, the deceased had commercial and residential properties in Nairobi, Mombasa, Malindi and Kilifi.

    The administrators have accused Daniel of meddling with their parents’ estate. They claim that he is collecting Sh400,000 per month and is staying in one of the houses without authority.

    Justice Ongeri observed that the siblings’ battle was so vicious such that they were filing an avalanche of applications, derailing the succession process.

    In her ruling dated March 31, 2020, she observed that the four administrators did not appear to be in control of the estate.

    “I direct that the administrators file a summons for confirmation within 30 days of this date. The said summons to contain a list of all the assets and liabilities of the Estate and the proposed mode of distribution,” she ruled.

  • Equity Bank branch accused of issuing Fake notes in their ATM machines

    Equity Bank branch accused of issuing Fake notes in their ATM machines

    In 2020, Banks advised those who had received fake currencies either through ATMs or over the counters to report the cases to the Central Bank’s Fraud Investigating Unit, or their respective banks as soon as possible.

    Kenya Bankers Association Chief Executive Habil Olaka told the Nation that cases of fake notes getting into circulation from banks are “remote”, but said banks are willing to ensure the incidents do not recur.

    “I would like to emphasize that a bank-related fraud, no matter how small, is investigated as a criminal offence by Central Bank of Kenya’s Bank Fraud Investigations Department. Each case does matter despite its magnitude,” Mr Olaka said in a statement.

    “Bearing in mind the control measures exercised by most banks during cash handling, we urge members of the public alleging to have been issued with fake notes to report and present the suspicious notes to their respective banks or CBK’s Banking Frauds Investigation Department.”

    The Association which represents commercial banks in the country was responding to a story we published in the Nation in which a number of Kenyans claimed they had withdrawn money from automated teller machines only to turn our fake.

    Kenyans continued to share their experience with fake currency notes as some accused banking staff of conning out banks.

    ”This is how it’s done, the tellers accept fake money, they balance their accounts at the end of their shift, the money is put into the ATM, he gets his share and life goes on. Because you can’t deposit fake money through ATM. Don’t look further Banks should screen their staffs,” claimed Stephen Hanya, a Netizen in a comment.

    The Consumer Federation of Kenya asked banks to acknowledge the problem and do something about it.

    But banks argued the procedure of loading cash in ATMs follows a very strict routine to ensure notes customers get are authentic. According to Mr Olaka, each bank has installed counting devices which ensure the notes are genuine. “Any coins and notes that do not meet the serviceability threshold are filtered from the system and assessed further for their authenticity, hence ensuring they do not get into circulation,” the bankers chief continued. “All the ATMs have installed in their cash dispensers technology that besides detecting the currency and denomination also detects if the note is authentic before dispensing the same to the customer.”

    Mr Olaka said notes that fail to meet the criteria are not dispensed to the customer but are put in a special “reject bin” within the ATM. These notes, banks say, are then collected by their staff and examined.

    “While this is not a completely fool-proof system against fake notes we believe that the chances of a fake note passing through the cash management system, and the ATM machine are extremely remote,” he argued.

    Banks dispelled fears that contracted staff from outside firms could be involved replacing genuine notes with fake ones, saying that each contracted individual must follow the laid-down procedure as indicated in their contracts.

    But in retaliation to the cases. The controls banks said they had put in place:

    1. All cash handling is under CCTV monitoring and always under dual custody of both bank staff and the contracted cash management firm.

    2. Cash received in banks is scanned through a machine at point of receiving (by tellers) that validates and detects any fakes currencies.

    3. Cash is then moved to Strong Rooms where again it is validated by a different team with bigger machines that will certainly catch any fake currencies no matter how sophisticated.

    4. The cash is then loaded into locked trays that go into the ATMs. These “trays” cannot be manually opened or accessed.

    5. The trays are inserted into the ATMs and only the ATM machine can pull out cash from the machines.

    Not so long when recently an alleged case of fake currency dispensing at one of Equity bank branch in Donholm was reported by a Netizen on Twitter sparking new concerns as to how many fake notes of the same have circulated within the area and if this a normality is only an isolated case or replicated elsewhere and whether Equity bank has been upto the task put in place security measures by the regulator of curbing fake currency circulation, it’s a big shame for a big bank as Equity to be painted with such allegations as it casts many doubts on its security system- Bankers Association to tame such cases. ​

    A tweet under which various Kenyans shared their experience on the same.​

     

    A tweet under which a section of Kenyans went ahead to castigate Equity bank management for employing inexperienced employees as tellers whom they referred to as underage staffs from their ‘wings to fly’ education initiative hence deteriorating customer service. ​

    As of the time of publication, Equity was yet to publicly comment on the above allegations.

    Equity bank‘s weak links to frauds and fraudsters have put in on the international money laundering watch following recent allegations and links to DP Ruto Shs15billion loan phone call to a an investor crony of his —Ugandan tycoon Matthias Magoola of Dei Pharmaceuticals Company.  The businessman who he negotiated a Sh15 billion loan from Equity Bank using the single phone call. An incident that have led to its management be summoned by Members of Parliament special committee.

    Equity Bank’s mobile banking service named Eazzy Banking, has had the most complaints with the the customers say is prone to hackers. There has been endless cases of customers having their cash swept out from their accounts without authorization.

    Check the social media pages of the bank and it’s chaotic with complaints of mysterious missing funds.

    In a fraud case registered under OB /62/24/8/2020  a Nyeri man lost his entire savings in Equity Bank. According to his son Edward Karungu, the old man had gone to bed with money sitting in his account only to wake up to an empty shell in what he now suspects to be an insider job and a weak link in the bank’s system.

    Last week in Uganda, upto 11 customers came out so far to demand that Equity Bank Uganda replenishes their money totaling Shs25M which they claim went missing from their accounts.

    Conclusion 

    If an ATM dispenses fake notes, the accountability lies with the concerned bank. Banks have machines installed to detect forged notes that check currencies before they are handed over to agencies to stash ATMs. Failure to detect fake notes will be treated as the bank’s willful attempt to circulate counterfeit currencies. A penalty that should be imposed on the bank.

    However, Here is what to do if you suspect a fake currency:

    Hold fake note in front of ATM’s CCTV camera. Most of us leave an ATM without checking notes, committing the biggest mistake.

    Before leaving the ATM, do check the authenticity of the notes. If they are fake, it is advisable to turn towards the CCTV camera and report it, for evidence. A security guard’s presence isn’t the only proof.

    Keep the transaction slip, write down the note’s serial number, and then file an FIR.

    If you get a fake note, submit it to the bank, which they’ll stamp with COUNTERFEIT BANKNOTE IMPOUNDED.

  • No Insurance Covers for Modified cars now.

    No Insurance Covers for Modified cars now.

    Thousands of motorists face cancellation of insurance covers as underwriters intensify a crackdown on modifications said to be compromising the safety and performance of their vehicles.

    Common alterations that may put vehicle owners in trouble include engine tuning, fitting alloy wheels, height spacers and other modifications meant to reduce the risk of theft or vandalism.

    Several underwriting firms are already turning away those with modified vehicles — leaving motorists in limbo since the law prohibits them from driving uninsured cars.

    UAP Insurance Company on Monday informed its customers that it would no longer insure vehicles that have been modified from using petrol or diesel to liquefied petroleum gas (LPG).

    The insurer said some of the modifications have been done without authorisation from the car manufacturers, raising questions on the safety of such vehicles.

    “Such modifications lower safety precaution standards and aggregate our exposure to liabilities in case of an accident,” said George Odinga, UAP Insurance general manager for underwriting and reinsurance.

    “We have therefore taken a decision not to onboard or renew cover for any vehicle with such modification done without manufacturer’s approval.”

    The National Transport and Safety Authority (NTSA) had in report ruled out any increased risk of fire when it licensed LPG-operated vehicles.

    But UAP has instructed its valuers to be highlighting such modifications in their valuation reports so that the underwriter decides whether it is a risk worth taking.

    “The modification has completely changed the risk from a standard motor vehicle risk to the level of a tanker on the road carrying LPG— highly flammable,” said Mr Odinga.

    The development is a blow to several companies and hundreds of garages that have been earning revenue from modified vehicles to satisfy customers’ preferences for increased comfort, higher efficiency, and distinctiveness.

    Laurence Okulo, a proprietor at Frigate Motors, said he had witnessed a rise in demand for conversion of engines and face-lifting of vehicles.

    “We charge as from Sh150,000 on modifications but it could go as high as Sh500,000 or Sh1 million depending on the extent of modification as customers seek high performance and trendy look,” said Mr Okulo.

    Modifications or customisations are added parts that do not come from the factory, also referred to as aftermarket.

    Insurers nonetheless concede that some changes, like some engine modifications, maybe impossible for many people to detect. Some insurers in markets such as Europe require owners to apply for modified car insurance— a type of insurance that covers modifications to a vehicle.

    However, many Kenyan insurers argue that modifications are making it hard to determine the risk profile of vehicles and therefore almost impossible to pick the right level of premiums.

    ICEA Lion General Insurance senior motor assessor Peter Mzungu said insurers now have to insert modifications as exclusions in vehicle insurance contracts to avoid disputes with customers.

    “Any kind of modification from manufacturers’ specification is prohibited unless the insurer is notified in writing so that they can weigh the risk and decide whether to take it or not,” said Mr Mzungu.

    He said that manufacturers assemble features that are safe for operations but modifications such as the use of facelifts, spacers, and spoilers are interfering with this.

    “A vehicle’s centre of gravity (COG) is well designed during manufacturing to ensure the safety of use. The minute you put in spacers, you increase COG and thereby make the vehicle very unstable on the road,” said Mr Mzungu.

    The instabilities, he said, could mean higher chances of accidents and therefore higher claims.

    Underwriting losses from insuring motor vehicles jumped by 126 percent to a record high of Sh6.86 billion in 2019, with private vehicle insurance returning losses for the eighth running year. The loss softened to Sh5.44 billion last year helped by Covid-19 travel curbs.

    The loss softened to Sh5.44 billion last year, helped by Covid-19 travel curbs.

    Mr Mzungu said minor changes such as replacing safety belts of one vehicle model with advanced ones meant for another could mean the belts failing to deploy correctly in case of a collision, enhancing the risk of fatalities.

    Other facelifts such as putting high valued radio are also seen as increasing the total value of the vehicle and increasing the risk for theft.

    “Unless there is a commensurate increase in insured value, the risk of insurers receiving fewer premiums for a high-valued vehicle is high,” said Mr Mzungu.

    Insurers are also concerned that the modifications mean that manufacturers cannot take any responsibility in case it backfires, exposing the general public to risks such as an accident.

    [BD]

  • Siaya County MCA pleads guilty of recieving Shs150K bribe to cover up Shs600million county scandal.

    Siaya County MCA pleads guilty of recieving Shs150K bribe to cover up Shs600million county scandal.

    Few weeks ago Kenya insights published a tip expose of a  whopping Shs600 million lost in the county and couldn’t be accounted for in the executive wing.

    Siaya county assembly planned to summon Governor Cornel Rasanga, Senator James Orengo and CECMs to appear before the county assembly to let the cat out of the bag.

    According to our source, a whooping Sh300 million for Lapfund, over Sh90 million for KRA statutory deductions, Sh77 million earmarked for county bursary, millions meant for county contracted workers wages and over Sh90 million for recruitment of Healthcare workers  cannot be accounted for by the Executive.

    The truth is rarely simple, yet this does not mean that we should give up on telling the truth. The fact that the truth is complex is not an excuse to resort to comfortable lies. Lies can disguise themselves as truth but eventually, the truth comes to light.In a turn over of events – a  Member of County Assembly (MCA) has admitted to receiving a bribe from the Governor’s office to conceal corruption issues in the county.

    The confession by West Asembo MCA Ambrose Akuno comes despite a move by Siaya County Assembly Speaker George Okode to defend the MCAs over bribery allegations last week.

    Last week during a press conference at the County Assembly precincts, Mr. Okode denied claims that Siaya MCAs had been compromised by the executive to cover up on the over Ksh 600 million graft in the county saying that those were mere rumors.

    A list had been doing rounds on social media of a section of Siaya MCAs who had allegedly been given bribes of up to Ksh 290,000 each by the governor’s office to cover up on alleged misappropriation of at least Ksh 600 million but the Speaker dismissed the allegations.

    The West Asembo MCA says he was given Ksh.150,000, an amount which he only came to realize later that was part of the bribe handed to his colleagues.

    Mr. Akuno, who has been sick, spoke to Radio Ramogi from the hospital where he stated that he cannot deny receiving the money adding that he was visited at the hospital by a section of his colleagues and given the money which to him he thought was a contribution to support his medication.

    He says that he suspects that the move to give him the Ksh 150,000 was a trick to silence him since he has been the most vocal on corruption matters within the county.

    The Siaya MCAs were allegedly given the bribes after they refused to pass the County’s Appropriation Bill for the year ending 2020/2021 after it emerged that there was no explanation as to why bursaries had not been released, Project Management Committee (PMC) monies not paid and statutory deductions not remitted.

    But Mr. Akuno argues that they should just pass the Bill to rescue the county government workers and contractors who are currently suffering, then forward their findings on corruption allegations to the Ethics and Anti-Corruption Commission (EACC) for action.

    On whether he will return the Ksh.150,000 that he received without knowledge that it was part of a bribe given by the Executive, Mr. Akuno stated that he does not know the exact place to return it.

    Siaya County has lost over Sh2.8 billion to corruption since 2013, according to a senior Ethics and Anti-Corruption Commission (EACC) official. The commission’s Western Kenya regional deputy head, Danstan Aura, described the state of corruption in the county as worrying, saying 313 corruption cases have been reported to the commission since 2013. Out of the cases handed over to the EACC, only 67 have been assigned for active investigations.

  • KAMP, PRISK, MCSK Deregistered by Kenya Copyright Board over low royalty payouts

    KAMP, PRISK, MCSK Deregistered by Kenya Copyright Board over low royalty payouts

    The Kenya Copyright Board (KECOBO) has now announced a decision to deregister the three Collective Management Organisations (CMOs) namely Kenya Association of Music Producers (KAMP), Performers Rights Society of Kenya (PRISK) and the Music Copyright Society of Kenya (MCSK).

    The board, in a statement to newsrooms on Tuesday, said the decision was arrived at following failure by the CMOs to meet conditions set out in their provisional licenses in April this year and that were valid until May 30.

    The conditions included: Holding an Annual General Meeting; allocating 70% of revenue for royalty payment; engaging with Kenya Revenue Authority (KRA) with a view to reaching a payment plan on tax arrears.

    Others were; demonstrating evidence of marketing and promotion of the use of ICT collection system; uploading of repertoire to the system under KECOBO supervision; as well as implementing the CMO policy in total.

    “By the time the Board was issuing these conditions, it noted that several conditions for the 2020 license period had not been achieved. The Board set the conditions on the understanding that rights holders would be relying on the royalties collected by CMOs during the pandemic period,” said KECOBO Executive Director Edward Sigei.

    “The decision to deregister the CMOs follows show cause letters issued to the CMOs for non-compliance to the licensing conditions specifically breach of administrative cost limit and diversion of royalties into an undeclared account whose operations are not monitored by KECOBO. Several submissions were also received from rightsholder organisation in response to a public notice placed by KECOBO both in print and various social media platforms.”

    The board also claimed that the three CMOs, at the end of July 2021, collected Ksh.114 million in royalties but only distributed 35.9% (Ksh.41 million) instead of the agreed 70% (Ksh.79 million).

    “From reports of distribution from two entities received so far, PRISK allocated a further Kshs. 4 million while KAMP made an allocation of Kshs. 1.2 million from their allocation of Kshs.10 million and Kshs. 8 million respectively to cater for administrative costs,” read the statement.

    The board said it, hence, decided to deregister the CMOs based on these reasons and having been dissatisfied with with their explanation in response to show cause letters.

    KECOBO further suspended collection of royalties for three months during which period it hopes to reform the CMO legal structure to prevent any future misuse of funds.

    “The main issues flagged by the Board of Directors include the opening of a different account other than the KPM account authorised by KECOBO, having spent more than 65 percent of the finances on administration cost contrary to directives and not undertaking their role of engaging the public and raising awareness about the KPM system,” noted KECOBO Board Chair Mutuma Mathiu.

    “The collection of royalties by these organisations, therefore, stands suspended until further notice,” stated KECOBO Executive Director Edward Sigei.

  • Fraudulent Hospitals Unmasked in the NHIF Audit report.

    Fraudulent Hospitals Unmasked in the NHIF Audit report.

    The National Hospital Insurance Fund (NHIF) audit on its contracted hospitals has revealed that some facilities have been relying on non-existent bed capacity to swindle it money through fictitious claims that contributes to loss of up to Sh16.5 billion annually.

    The state-controlled insurer says many hospitals had lied that they have theatres for operating patients while others had exaggerated their bed numbers by up to five times to defraud it.

    Such hospitals have then relied on the non-existent capacity to manufacture patient numbers and collect higher claims, driving up the amount of money spent on claims by between 10 percent and 30 percent.

    “We had noted some unscrupulous activities where a hospital is captured that it has operating theatres or 100 beds when actually on the ground there is no theatre ad even beds are less than 20 beds,” said Peter Kamunyo, the chief executive of NHIF.

    “We now have a team of assessors who are going around to ensure there is a tally between what the hospital claims to have and the real capacity.”

    The healthcare providers enrolled with NHIF had increased from 4,281 in 2017 to 8,189 as at June 2020.

    The NHIF collected Sh59.5 billion from the 8.9 million members in the year ended June 2020 and paid out Sh54.9 billion or 92.2 percent as claims to hospitals.

    Dr Kamunyo says NHIF has sued several hospitals in the last one month and says it will increase surveillance and rely on the newly installed e-claims process to cut exposure to fraud.

    The inaccuracies had forced NHIF to halt contracting new hospitals to shield itself from further fictitious claims, sparking outcry among facilities seeking accreditation.

    NHIF aims to complete the review by end of this month, discontinue all the old contracts and enter into new agreements.

    BD.

  • Energy Dealers Association (EDA) ​Found Culpable of Exploiting Kenyans By Fixing LPG prices.

    Energy Dealers Association (EDA) ​Found Culpable of Exploiting Kenyans By Fixing LPG prices.

    On Friday, 20 August 2021, through a gazette notice — Competition Authority of Kenya (CAK) found Energy Dealers Association (EDA), a conglomerate of 32 small-scale suppliers and distributors, culpable of executing the illegal plot to exploit Kenyans following investigations report.

    The 32 players colluded to fix the minimum prices of 6kg and 13kg liquefied petroleum gas (LPG) cylinders. The suppliers applied to enter in a settlement agreement where they were fined Ksh408,000.

    “The association has paid a financial settlement Ksh408,000 which is equivalent to 5 percent of the relevant annual turnover and undertaken not to engage in anti-competitive conduct.” 

    This was in a bid to reduce competition among themselves and in turn guarantee themselves higher margins, but to the detriment of consumers.

    CAK explained that although there was no evidence that the suppliers proceeded to implement the proposals, the intent was contrary to Section21 of the Competition Act, which outlaws restrictive trade practices like they were about to engage in full throttle.

    Specifically, the association was found to have advocated for the enactment of the Energy Dealers Act 2019 with the objective of recommending pricing formulae to its members. 

    Restrictive trading practices are any habits used by a player in any industry to offer them a competitive advantage against another while doing business. This includes colluding to set prices for a product. A cartel way of handling business.

    Following the fine imposed on them, EDA committed to implementing a competition compliance programme to sensitize its members and their staff about the provisions of the act.

    The prices of LPG increased following the introduction of 16% value-added tax by the Kenya Revenue Authority (KRA) in April, 2021. KRA stated that the new tax would take effect from July 1. 

    Kenyans would be forced to part with Ksh300 more when purchasing either 6kg or 13kg of gas, which were among the zero-rated items. In February, Kenya Bureau of Standards (KEBS) called for stakeholders in the LPG gas and tanker businesses to use reinforced steel to minimize explosions.

  • Palm-greasing Corrodes Sasra CEO Recruitment​.

    Palm-greasing Corrodes Sasra CEO Recruitment​.

    It is barely a week since Kenya insights dug  into the status quo of the Sacco Societies Regulatory Authority (Sasra) CEO recruitment exercise that has since been marinated with money bags for bribery of the board as the deep state cartels within are using their resources at disposal to fix in acting CEO Paul Njuguna whose unorthodox as per the disgruntled staffs within – testifies that it only favors the cartels.

    Njuguna is at the helm of proximity to grasp the power and already thinks he already wield it. Peter Njuguna took over from  John Mwaka for the CEO position. Mwaka is said to had been brought in as part of the dream sanity team of former CS for Industry, Trade and Co-operatives Adan Mohammed following his war against the corrupt agency. On this ground, when Mwaka took over from his predecessor Carilus Ademba who was ousted by CS who refused to extend his term – Mwaka became ​ruthless with the rotten eggs within the agency.

    Ademba was shown the door despite frantic maneuvers by cartels within the board who ensured within their means that Ademba was again recommended for a renewal of his contract at the authority.

    Therefore, the corrupt SASRA board had to unconditionally get back to the drawing board in search of a ‘Co-operating’ CEO after their plans to keep Ademba failed and from his fate, came Mwaka who was the then manager in charge of policy, research and development at the authority. He replaced Ademba in acting capacity. But it was Njuguna at the time who was in the best suitable position as Chief Manager Sacco supervision at SASRA who enjoyed the profile and immense power next to the CEO but in terms of integrity, he wasn’t the right person for the CEO position being that CS Adan was after sanity of the agency by all means and didn’t want mole on his way.

    Now with the absence of CS Adan, Njuguna is flocking together with his fellow birds, the board and cartels and nobody expects much in his tenure but the worst. 

    He is said to have kept on bragging how he has managed to pocket some board members including the chairman, by making sure that they come to his office weekly. Meaning that they draw per diem and sitting allowances on a weekly basis to ensure that they will favour his confirmation for the position. A powerful position in such a financial industry.

    Njuguna is said to have fashioned himself as a well-connected man and surprised many when he recently confessed how he uses a Kenya Power PS Eng. Joseph Njoroge to wire money to CS Peter Munya.  Those in the know say that the party was partially funded by rich Njuguna’s uncle who has business interest in mining industry.

    As Njuguna goes about his business , it’s evident that he has really tried to raise money to satisfy the board chairman.

    Recently staff were ordered to do a report so that Njuguna could sack mwalimu Sacco board and CEO who refused to donate him money in kickback so as to be favored by his reign when he’s permanently confirmed in the CEO position.

    Those delegated to carry out the witch-hunt through negative report said recounted how they struggled to do such a report since the issues are historical yet they had to impress the boss let they equally get fired, demoted or transferred to other departments which are less lucrative.

    ‘We are hoping that someone would hear our cries but apparently it looks like we have no one to run to,’ one of the staff lamented. Njuguna’s uncle in question gives him money and where it’s not enough he will send the staff to harass Saccos so that he can be able to solicit funds from them as a way of securing their survival.

    The CEO many times struggles to accommodate his demands and recently, he blatantly refused to pay a supplier who could not bribe him. The staff noted that they have an incompetent board which is highly compromised and a CS who is conflicted.

    SASRA board needs an overhaul to bring sanity to the agency with Njuguna source of the insanity be investigated since the agency controls the economy of this country in a bigger portion and corruption isn’t healthy for the Saccos and their clients who will be feeling the pinch the authority’s ruthless sanctions.

  • High Stake for Foreigners As GoK plans to increase cash threshold for foreign investors.

    High Stake for Foreigners As GoK plans to increase cash threshold for foreign investors.

    Kenya has lined up drastic changes to its investment promotion law in a bid to seal loopholes exploited by foreigners to compete with local small traders and commit crimes such as money laundering.

    Interior Cabinet Secretary Fred Matiang’i says the ministry will be seeking parliamentary approval of amendments to the law, including raising the minimum investment threshold for foreigners.

    The Kenya Investment Promotion Act requires foreigners to have a minimum of $100,000 (Sh10.92 million) to obtain an investment certificate that qualifies them for incentives such as investment deductions and tax rebates.

    Dr Matiang’i told the National Assembly’s Committee on Administration and National Security that the current minimum investment threshold was too low given the size of the Kenyan economy.

    The committee is investigating the deportation of Turkish national Harun Aydin, an ally of Deputy President William Ruto, for suspected involvement in money laundering despite coming in on a work permit as an investor in solar energy.

    “For a country our size and the economy of our size, we now need to be a bit more careful when we look at these kinds of things (rules for foreign investors) in future because we have learned the bitter way from some of these things,” the minister said on Friday.

    “That’s how some people can come in [including] money launderers and engage in ‘wash-wash’ (informal language for black money)… and then masquerade around as business dealers.”

    The Kenya Investment Authority (KenIvest) has proposed a flexible minimum foreign investment threshold, depending on the capital requirement of different sectors based on feedback from stakeholders during engagements that led to the development of the country’s first investment policy, launched in November 2019.

    Moses Ikiara, the investment promotion agency’s director-general, said the stakeholders wanted the minimum capital for foreigners to be tripled to $300,000 (Sh32.76 million) for capital-intensive sectors such as construction, energy, manufacturing, oil, and gas.

    Others, he added, felt that the threshold should be lowered for sectors such as ICT whose ventures may not require as much capital.

    “There are many people who were thinking $100,000 is high and were saying when people were innovating something like M-Pesa, they wouldn’t have needed that minimum capital. There are some types of businesses where you require human resources or knowledge more than capital,” Dr ikiara told Business Daily in April.

    “The thinking is to allow innovative investments that are not capital-intensive not to be locked out.”

    The proposed legal amendments, the KenInvest chief had added, will also seek to ring-fence local investors.

    Lawmaker Mishra Swarup (the Kesses MP), a member of the National Security Committee, said the investment threshold for foreigners needed to be raised as much as ten-fold to protect small traders.

    “What’s Sh10 million for investment. It should be a minimum of Sh100 million or Sh200 million. These [foreign] investors are blocking …progress of our citizens,” Dr Mishra said.

    Kenya in June 2019 deported seven Chinese nationals found trading illegally in Gikomba, the country’s largest informal market for second-hand clothes and footwear.

    At the time, the Interior Ministry said three of the Chinese had no valid work permits while the other four were found to be in employment and other “income-generating activities” at Gikomba contrary to the terms under their respective work permit classes.

    “As soon as we amend the law and they give us a higher threshold, we will implement the threshold they give us. So, maybe as Parliament, it is now an opportunity that you have to implement what Hon Mishra says,” Dr Matiang’i told the parliamentary committee sitting in Mombasa.

     

  • Kenya Power and Ministry of Energy Might Have Colluded In Sh18.5b Heist That Taxpayers Paid​ LTWP.

    Kenya Power and Ministry of Energy Might Have Colluded In Sh18.5b Heist That Taxpayers Paid​ LTWP.

    Auditor General Nancy Gathungu in the audit report tabled to Parliament on August 5, said the Ministry of Energy and Kenya Power should be held responsible for the Ksh.18.5 billion bill arising from the Lake Turkana wind farm project.

    The two parties did not ensure a competitive process in picking a contractor for the construction of a transmission line connecting the project with the national grid.

    The Ministry of Energy granted the Lake Turkana Wind Power (LTWP) Limited, a private entity, the exclusive rights to survey the project area and wind resources and to further invite tenders on behalf of Kenya Power. The action has been established to be contravention of the now repealed Public Procurement and Disposal Act of 2005 with the Energy Ministry further failing to justify the criteria for direct procurement.

    Conflict of Interest 

    The Auditor General report flagged conflict of interest given the contracted M/s Isolux Ingenieria SA is affiliated to LTWP who is the proprietor of the wind power farm located in Loiyangalani and holds a private power purchase agreement (PPA) to sell generated electricity to Kenya Power over a 20-year period.

    The terms of the PPA require Kenya Power to pay for power from the plant irrespective of whether the output makes its way to the national grid. Under the PPA, LTWP was to finance, design, procure, construct, install, test, commission, operate, maintain and sell net electricity output exclusively to KPLC.

    KPLC on the other hand was required to evacuate all net electric power from LTWP plant once commissioned for a period of 20 years. The new transmission line connecting the plant to the grid was completed in September 24,2018, 21 months after the completion of the wind farm resulting in the accrued Ksh.18.5 billion bill in deemed generated energy (DGE) payments to LTWP.

    The huge payout arose from a 381-day delay in completion of the 428km high-voltage power line from Marsabit to Suswa sub-station in Narok, the main interchange for power from different sources.

    LTWP commissioned its 310 megawatts power plant on January 27, 2017 but the government, which built the evacuation line did not complete the works until September 24, 2019.

    “Due to delays in completing the transmission line, energy charge was not evacuated from LTWP plant resulting in accrued penalties to the government referred to as deemed generated electricity (DGE) claims amounting to Sh18,499,082,672 (euros 167,261,145) for the period January 27, 2017 to September 10, 2019,” Nancy Gathungu said in a special audit of LTWP.

    Already, the government has paid Sh10.3 billion to owners of LTWP leaving a balance of Sh9.8 billion (euros 81,577,128). “The balance (Sh9.8 billion) is to be recovered by LTWP Ltd through a tariff increase by Kenya Power and Lighting Company (KPLC) of Euros 0.00845/Kwh for the period June 1, 2018 to May 31, 2024 (DEG recovery period) and likely to be borne by the consumers,” Ms Gathungu said.

    The Auditor General queried the legitimacy of the charges given LTWP direct involvement in the procurement of the transmission line’s contractor.

    “M/s Isolux Ingenieria SA and the consultant KEMA, both who has been procured by LTWP Ltd were the key players in determining the success of the transmission line, yet LTWP Ltd was the eventual beneficiary of the delays in the completion of the project by way of the transmission line (TI) interruption DGE payments,” read part of the special audit.

    At the same time, the report stated the payments commenced without any independent review of confirm the readiness of power generation by LTWP.

    Previously, the World Bank warned of the project’s risks as it pulled out of a proposed financing deal noting the ‘take or pay’ obligation exposed Kenya Power to unacceptable high financial risk while the time proposed to put up the transmission line was inadequate. After signing a Ksh.16.9 billion contract to develop the T-line in December 30, 2011, M/s Isolux Ingenieria filed for bankruptcy on 14 July 2017 in Spain, three months after failing to meet the December 30, 2016 deadline to deliver the project.

    Despite state of Isolux Ingenieria, Ministry of Energy continued involvement of the contractor in the project amidst its financial capacity constraints.

    “There was no evidence that an independent financial and technical due diligence on the contractor before the signing of the contractor had been done.”

    The Kenya Electricity Transmission Company ( KETRACO ) stepped in to salvage the project by kicking out the contractor and picking a consortium of the Nari Group Corporation and Power-China Guizhou Engineering who completed the line on September 10, 2018.

    LTWP is owned by seven shareholders namely:

    •Aldwych Turkana Limited (owned by Anergi, an African Power Company established through the joint venture between Africa Finance Consortium and Harith General Partners of South Africa);

    •KP&P Africa B.V.;

    •The Danish Climate Fund through Investment Fund for Developing Countries (IFU);

    •KLP Norfund Investments of Norway;

    •Vestas;

    •Finnfund- the Finnish Fund for Industrial Cooperation Ltd; and

    •Sandpiper.

    LTWP is financed by a consortium of senior and subordinated lenders specifically:

    •European Investment Bank;

    •African Development Bank;

    •The Trade and Development Banks (TDB), formerly the PTA Bank

    •East African Development Bank (EADB);

    PROPARCO;

    •Netherlands Development Finance Company (FMO);

    •Deutsche Investitions- und Entwicklungsgesellschaft (DEG);

    •Eksport Kredit Fonden of Denmark (EKF);

    •Standard Bank of South Africa;

    •Nedbank of South Africa; and

    •EU Africa Infrastructure Fund (EU-AITF).

    Kenya Power currently on the brink of collapse with board wars , financial losses, blacklisted by their Donors.

  • Ministry Of Health Caution Against Taking AAR Insurance COVID-19 Vaccine ‘Chanjo’ Cover.

    Ministry Of Health Caution Against Taking AAR Insurance COVID-19 Vaccine ‘Chanjo’ Cover.

    In 2020 during first wave, Kenyan insurers agreed to continue covering the disease after consultations. Prior to the WHO’s declaration, an infected person could use their medical cover but this is didn’t last long with the Kenyan insurers. “The insurers will not be able to offer medical insurance cover for the condition at this moment. The insurers have this category of exclusion properly indicated in the policy documents,” Insurance Regulatory Authority chief executive Godfrey Kiptum .

    AAR Insurance chief executive Nixon Shigoli said once a disease is declared a pandemic, the burden of medical care provision shifts from insurers to the government.

    “Insurers now have to think very quickly but I haven’t heard of anyone in the industry who has included coronavirus in their medical offerings,” he said. He said if underwriters were to decide to introduce such a product it would likely be costly, meaning it wouldn’t meet its intended goal. “The truth is, we might introduce a product that caters to coronavirus but the uptake may not be as promising. Very few Kenyans are conscious enough to buy such a cover,” Shigoli said.

    Even though after affirming not to involve the insurer in any cover case in relation to the pandemic, AAR popped up with ‘Chanjo cover’ from the moon. AAR Healthcare launched the ‘Chanjo’ insurance cover for patients suffering from extreme effects of Covid-19 vaccines within 60 days after getting the jab.

    Individuals pay Sh2,950 for the insurance policy dubbed ‘Chanjo’, which has a limit of Sh500,000 for inpatient treatment. The vaccine insurance also offers a Sh500,000 last expense benefit in case of death and covers individuals aged between 18 and 60. Individuals register for the cover through the AAR mobile app or via the company’s website.

    A cover in preparation of your demise as Marketing Manager- Special Projects, Pioneer Assurance, Antony Watene said their role as a life insurer is to provide the last expense cover in the event of death within 60 days after vaccination.

    As of April 2021, Kenya’s Pharmacy and Poisons Board (PPB) announced that 279 people reported suffering adverse effects after taking the Oxford-AstraZeneca coronavirus vaccine.

    Out of the 279 reported cases, 272 were mild and resolved within a short period. 339,893 people vaccinated with vaccine in Kenya at the time of the report.

    Like any vaccine, COVID-19 vaccines can cause mild, short term side effects, such as a low-grade fever or pain or redness at the injection site. Most reactions to vaccines are mild and go away within a few days on their own without seeking medical attention.

    More serious or long-lasting side effects to vaccines are possible but extremely rare. These said effects vary from headaches, fever, nausea, fatigue, excessive sweating and so on of which most clear within two days.

    There’s no case of serious rare side effects of AstraZeneca jab that have resulted to loss of life in Kenya as per the officially reported cases of which have just been mild and disappears. But there are reported fatality in other countries across the world that have resulted from the adverse effects of the COVID 19 jabs especially the rare-blood clot.

    Like for example, in UK as of March  According to data from the Medicines and Healthcare products Regulatory Agency (MHRA), up to and including 31 March 2021, there were 79 UK reports of blood clotting cases alongside low levels of platelets among people given the AstraZeneca vaccine. Nineteen of those people died. By that date 20.2m doses of the AstraZeneca vaccine had been given in the UK, meaning the overall risk of these blood clots is approximately four people in a million who receive the vaccine.

    https://twitter.com/aar_insurance/status/1425100343801692169?s=21

    In a turnaround of events, their advertisement of the cover turned sour as Kenyans took them head on on social media , a confrontation which included Dr. Githinji Gitahi, MBS who called on the insurer’s unethical move terming it commercial callousness for fear mongering and profiling AAR as Antivaxxer. “Is @AAR_Insurance an #antivaxxer or just looking to create fear and make profit? What commercial callousness is this? We are working to save lives and your insurer is working to make money by creating fear! Must be a first in the world @MOH_Kenya #AARantivaxxer.”

    Which in response, the insurer argued, “The vaccines approved by the World Health Organization (WHO) & the Ministry of Health are SAFE. AAR Chanjo cover is meant to bring comfort to those worried about developing any side effects. It is meant to cover Kenyans in the UNLIKELY event of adverse reactions.”

    But Githinji shot the last bullet of which haven’t been answered , “And is it true that you don’t cover for COVID illness? Do you cover your members for these side effects you want to sell cover for to others? Could you please share a list of these side effects and how you will determine they are COVID vaccine? What’s your criteria?” 

    Other comments –

    “Shame on you!! Whereas other Insurance companies are providing medical cost waivers, donating funds to at risk families and funding mass education programs y’all are looking for ways to profit off a pandemic and spread fear. C’mon Shape up!”

    “Do they outweigh the side effects of being unvaccinated and catching C-19? What do your actuaries say about the chances of needing hospitalisation for the ‘side effects’ of C-19 vaccination?”

    “The Insurer creating fear to sell a policy is unethical if you wanted have the cover just give it for free to all your existing medical policyholders as a sign of encouraging them get vaccinated ,otherwise having it as independent policy to sell amid a pandemic is unethical.”

    “Your focus on rare events is really not warranted. You are planning to make money on something that will rarely happen. And the message you are sending is not the correct one . You should put a package to support people from the impact of COVID”

    “Everyone seems to have an agenda to push these days. You don’t become an anti-vaxxer just by acknowledging THE FACT that vaccines have side effects. No need to lynch AAR, if you are not the vaccine manufacturer.”

    A serious outburst that drew attention of Ministry of Health who in response cautioned the unsuspecting customers and the general public against money laundering initiative by the insurer.

    “Our attention has been drawn to posts/advertisement circulating in social media by an Insurance company alleging that they are offering to cover for “adverse side effects” arising from Covid-19 vaccinations. The Ministry of Health wishes to state that insurance against side effects is not only unnecessary but unethical. No company should claim to provide insurance services against vaccine side effects or
    side effects of any medicine. An advertisement of such services is misleading to the public & creates unnecessary anxiety among people who are already at risk of severe Covid-19 disease. All vaccines deployed for COVID-19 vaccination in Kenya have received both WHO and Kenya Pharmacy and Poisons Board Emergency Use Listing. These vaccines have been evaluated and found to be safe for use to combat the Covid-19 pandemic.”

    If AAR can’t cover the Covid19 bill and decides to invest in a portfolio that it absolutely ripping big as there are no serious cases of side effects being reported. Pushing its clients to pay more and fear mongering  the public skepticism – to register for the Chanjo cover as a precautionary measure is totally against healthcare system as far as ethical considerations and extortion is concerned.

    There’s a possibility of a marketing strategy that AAR could be using media influencers to profile death cases related to Covid19 to be as a resultant of the adverse effects to push their cover narrative and discredit Government of the day. Downplaying Law of attraction (You attract what you think) in Psychology to their personal interest to make money – they’ve been pushing side effects narrative that psychologically  inflicts fear into making everyone believe that chances of being a victim is 5 in 10 hence creating phobia.

    Instead of AAR encouraging the public not to worry of side effects which according to WHO, CDC are normal signs that your body is building protection, they’re out to push a narrative that should feel side effects – get to the hospital when maybe all one requires is just rest. 

    The ball is now in the court of Insurance Regulatory Authority (IRA) to exercise its mandate and do its due diligence in solving the matter which no longer has no public faith. ​

     

  • Big Blow For Healthcare workers strikes as Labor Court rules.

    Big Blow For Healthcare workers strikes as Labor Court rules.

    Doctors and Nurse cannot go on strike unless there is a specified minimum number of medics who are attending to patients. A three-judge bench of Labour court has ruled that the law governing essential services in the country allows public employers to determine the classification of employees who must continue to work during a work stoppage.

    They  found that the government has the right to dictate the number and names of employees within each classification and the essential services that are to be maintained.

    Justices Monica Mbaru, Jorum Abuodha and Linnet Ndolo  directed Health Cabinet Secretary Mutahi Kagwe and his Labour counterpart Simon Chelugui to come up with regulations within 12 months to ensure that hospitals do have personnel during strikes.

    “Industrial action by health workers is not permitted unless there is a known and acceptable formula of ‘minimum service’ retention at every affected health facility. This limitation is in addition to those imposed by the conciliation procedures set by the Labour Relations Act,”  the court ruled.

    The case had an implication to teachers as they are also classified as essential workers. It was filed by Joseph Otieno against Kenya Medical Practitioners Pharmacists and Dentist Union (KMPDU) and Kenya National Union of Nurses (KNUN) arguing that the provision of quality healthcare services is deteriorating steadily following frequent strikes. According to him, the strikes have translated to a poor attitude to work among medical health workers and rampant professional negligence, sometimes because of unannounced strikes. Otieno lamented that on August 12, 2015, an 11-year-old boy died in Kilifi Hospital on the second day of a nurses’ strike. “National Union of Nurses have acted within the Constitution to call and/or go on strike. But there are other provisions in the same Constitution which are obviously infringed; it appears that some inconsistencies in the Constitution are to blame,” he argued.

    According to him, the right to life is greater than the right to picket and to go on strike. The doctors’ union did not respond to the case despite being served with the court’s proceedings and hearing notices.

    Meanwhile, the nurses’ lobby opposed the case arguing that it was unfair to single them out as Central Organization of Trade Unions (COTU), Civil Servants Union, Trade Union Congress and Kenya Union of Domestic, Hotels, Educational Institutions and Hospital Workers, whose workers provide essential services and were not included in the case. KNUN argued that the Labour court lacks powers to entertain the case as the Constitution states only the High Court can determine whether any law is inconsistent.

    The union claimed that there was a similar case filed by activist Okiya Omtatah.

    However, the three judges dismissed KNUN’s argument and found that although doctors have a right to picket, a life lost due to lack of care is irreversible. The trio noted that the right to strike can be limited adding that there should be a balance between the two rights.

    With this ruling, the judge seems to had been inconsiderate of the upsurged mental illness cases among healthcare workers that have led many suicidal cases among the HCW and essential workers – which have largely been contributed by poor working conditions, peanuts salaries and wages. There’s more that has been ignored in favor of the government of the day and the right channel finally to re-address the matter is before High court or bill in parliament to amend the Act.

    And it would have just been as simple as honoring CBAs of the concerned parties to avoid loss of lives. The three bench Judge forgot to note that they cannot stop an ejaculation whose time has come  and so impossible mission of stitching anus to stop diarrhea. 

  • Siaya County Covid Millionaires

    Siaya County Covid Millionaires

    A whopping Shs600 million have been lost – cant be accounted for in the executive wing. Siaya county assembly plans to summon Governor Cornel Rasanga, Senator James Orengo and CECMs to appear before the county assembly to let the cat out of the bag.

    According to our source, a whooping Sh300 million for Lapfund, over Sh90 million for KRA statutory deductions, Sh77 million earmarked for county bursary, millions meant for county contracted workers wages and over Sh90 million for recruitment of Healthcare workers  cannot be accounted for by the Executive.

    In the looming showdown, MCAs  are also bothered to get answers on the perceived controversial contents of the Siaya PMCs fund of which whereabouts of over Sh100 million are unclear.

    Siaya County has lost over Sh2.8 billion to corruption since 2013, according to a senior Ethics and Anti-Corruption Commission (EACC) official. The commission’s Western Kenya regional deputy head, Danstan Aura, described the state of corruption in the county as worrying, saying 313 corruption cases have been reported to the commission since 2013. Out of the cases handed over to the EACC, only 67 have been assigned for active investigations.

  • Faces of Impunity At KiPPRA Exposed.

    Faces of Impunity At KiPPRA Exposed.

    Kenya Institute for Public Policy and Analysis (KiPPRA) which’s a government agency has been whistleblown following suspicious recruitment dealings and which has exposed the wrath of the executive director Rose Ngugi in the public office.

    Genesis unfolded after advertisement of Policy analysts position, a shambolic recruitment process in a row when previously claims of mismanagement by Jascath Kaunda – the human resource management officer, according to our source.

    Jascath Kaunda who decamped from Ministry of Public Service is believed to be a proxy of Rose Ngugi escalating the conflict of interest in the government agency. In a bid clean up her mess, she has sought services of a consulting firm to assist in the shortlisting exercise. A firm which according to our source, Peter Munene and Moses Njenga – who are Ngugi’s puppets in the management are proxies.

    Kippra trains staffs, young professionals whom she dumps at the end – only to hire outcast proxies.

    According to our source, it’s only Principal Human Resource Manager Martha Wanjiku who has stand her ground against Ngugi’s catastrophic operations at the institution. Wanjiku presented her fresh plans of managing personnel, she also proposed appointment of HoDs and hiring of senior personnel in the institute but board – proxies of Ngugi turned her proposals down. A confrontation that escalated the beef and deteriorated activities at the institute.

    According to our source, it’s a fact that her micromanagement of staff has rendered nearly all departments to be non-functional to the extent that no decision can be made with unless okayed by her. At some point she authorized a worker on probation to appraise another staff who was also on probation. Some staff who reported to the institute more than 8 months ago are yet to be confirmed deliberately to meddle and micromanage work in the department.

    Her kinsmen and relatives Moses Njenga, Peter Munene heading the supply chain department and Samuel Githinji – internal auditor, are accused of being compromised and survive on corrupt kick backs. Ngugi has gone full throttle to contravene Public Procurement and Disposal of Assets Act.

    Sources say, recent audit by Societe Generale de Surveillance caught her off guard but it’s believed she lied to get certification that the institute had achieved 60 percent of the 2020/2021 work plan by March 2021 when on the ground 2019/2020 backlog work plan is still in bulk. When the bulls fight, it’s the grass that suffers.

    Oppressed insiders are eagerly waiting for her exit. She lacks personal relationship skills and zero managerial skills which as a product led to downgrading of the institute by SRC.

  • New SASRA CEO Unorthodox Unmasked

    New SASRA CEO Unorthodox Unmasked

    They say, “ Power attracts the worst and corrupts the best” for once I got convinced SASRA acting CEO Peter Njuguna is a perfect case study.

    The recently appointed Sacco Societies Regulatory Authority acting CEO Peter Njunguna since taking over from John Mwaka in acting capacity is accused to be operating in total disregard of the senior staff and the board – absolutely drunk in power already.

    He is said to have kept on bragging how he has managed to pocket some board members including the chairman, by making sure that they come to his office weekly. Meaning that they draw per diem and sitting allowances on a weekly basis to ensure that they will favour his confirmation for the position. A powerful position in such a financial industry.

    Njunguna who was a manager in charge of the entire SACCO sub-sector’s supervision prior to his new role as the acting CEO. Pissed off staffs are citing that the current happenings at the agency are illegal, unethical and not sustainable.

    They demand that the board should be ethical enough not to solicit for money from Njuguna given that there’s a budget cap.
    They were forced to do a budget reallocations to accommodate the board’s worryingly growing appetite for swindling money.

    Njuguna is said to have fashioned himself as a well-connected man and surprised many when he recently confessed how he uses a Kenya Power PS Eng. Joseph Njoroge to wire money to CS Peter Munya.

    Before D-day of results of the recent CEO recruitment , he reportedly held a bid party to celebrate for the CEO’s position, fully confirmed that his purported money to CS Peter Munya has worked.

    Those in the know say that the party was partially funded by rich Njuguna’s uncle who has business interest in mining industry. As Njuguna goes about his business , it’s evident that he has really tried to raise money to satisfy the board chairman.

    Recently staff were ordered to do a report so that Njuguna could sack mwalimu Sacco board and CEO who refused to donate him money in kickback so as to be favored by his reign when he’s permanently confirmed in the CEO position. Those delegated to carry out the witch-hunt through negative report said recounted how they struggled to do such a report since the issues are historical yet they had to impress the boss let they equally get fired, demoted or transferred to other departments which are less lucrative.

    ‘We are hoping that someone would hear our cries but apparently it looks like we have no one to run to,’ one of the staff lamented. Njuguna’s uncle in question gives him money and where it’s not enough he will send the staff to harass Saccos so that he can be able to solicit funds from them as a way of securing their survival.

    The CEO many times struggles to accommodate his demands and recently, he blatantly refused to pay a supplier who could not bribe him. The staff noted that they have an incompetent board which is highly compromised and a CS who is conflicted.

    They noted that as staff and the SACCO movement , they are doomed now that Njuguna who is already sick from the big man syndrome is very sure and saying it loudly that by he will officially be announced as the CEO  come rain come sunshine.

    Corruption has been normalized in the regulatory office that Peter is aluta continua seemingly of his predecessor John Mwaka was linked to scandals rocking  the organization including misapropriation of funds. This had him relieved from his duties after acollecting a bribe from Imarika sacco. He was later reinstated and appointed as the acting CEO when SASRA was formed in 2008. 

    Mwaka later employed commissioner Mary Mungai’s son to the IT department since she had pushed for his appointment as CEO. Then Director Kinyua and Ms Mungai ensured that that Mwaka was appointed the CEO through the help of CS Adan Mohamed’s personal assistant. SASRA’s Human Resource manager, Boniface Musumbi and the procurement manager Diana Mwacharo who purchased property in a span of one year ensured that the CEO goes to 10 international trips a year to launder allowance. 

     

  • Asian Land Fraudsters In Kenya Nabbed By The Court.

    Asian Land Fraudsters In Kenya Nabbed By The Court.

    A fraudulent conspiracy, greed and abuse of office – norm at the land offices has been this time round been shuttered by Environment and Land Court Judge S Okong’o has blocked an attempt by the Asian cartels to defraud their victims a prime parcel of land in Westland.

    Main act in the criminal scene is one Bhupesh Hardshadray Rana who have inflitrated Ministry of land and the Companies’ registration office. In this case, a former MP for Ntonyiri now Igembe North constituency Joseph Muturia is embroiled after it emerged that Rana and his team fraudulently sold him land at a whopping Sh12 million.

    Muturia purchased the land through his company Fairmile investment Limited which was listed as the 1st defendant in the case. While selling the land to the former legislator claimed that he held power of attorney donated by one Kantilal Maganbhai Patel who he claimed was the registered owner of the land.

    Maganbhai Patel was listed as the 2nd defendant in the case. Trouble started wayback in 1963 when one MJ Patel who was the original owner of the land LR No 209/73/12 sold it to a company known as HP Youtan and Limited Company.

    On Feb 17, 1964 – HP Youtan lodged a caveat against the title of the property claiming purchaser’s interest. Unfortunately, Patel who was the seller died on May 18 1967 before transferring the land to HP Youtan and therefore grant of letters of administration in respect of the estate was issued to his son, Patel. A back and forth court cases that took decades ensued between Patel and HP Youtan regarding the ownership of the same before HP Youtan emerged victorious in 2001 when it was declared the indisputable registered proprietor of the property.

    Another stumbling block for HP Youtan was the fact that the property was leased to the original seller MJ Patel by the government for a term of 99 years with effect from July 16 1903 with expiry on July 16 2002 barely a year after he was declared rightful owner of the property. On July 20 2006, HP Youtan applied for the extension of the lease only to fall into the hands of cartels.

    It all started when the commissioner of Land informed HP Youtan that it’s application for lease extension has been approved and the government had agreed to renew lease for a further term of 50 years with effect from July 1 2002. The deal was so good that commissioner of lands requested HP to submit a new deed plan approved by directors of surveyors and pay 19,000 to cover for annual rent with effect from December 1 2006. Another 8,465 was deposited on account on account of land rent, registration, stamp duty and approval fees.

    December 21 2006 the lands commissioner issued HP letter of allotment for the extended lease and was issued with a receipt for the same after paying another 8,465 on May 15 2007 again for allotment. It is imperative that HO Youtan was issued with said allotment letters, it’s application for extension was approved by directors of physical planning on August 17 2006, the city council of Nairobi and the Director of surveys on August 30 the same year.

    On December 22 2006, a deed plan approved by the Director of Surveys was issued for the purposes of renewing the lease in favor of HP Youtan and as December 2006, what remained was for the commissioner of lands to issue a new grant to HP Youtan but curiously the commissioner of lands failed to issue such a grant despite the fact that HP Youtan had complied with all conditions.

    This is how con artist Rama and in a strange turn of events on May 2008, Rama who masqueraded to be attorney of Patel made a brazen move and applied to the lands commissioner for the renewal of the lease in favor of Patel and September 18 2008 commissioner of lands issued allotment for the lease extension to Patel as requested by Rama.

    The lease was extended for a term of 50 years with effect from October 1 2008 and 11,630 was paid. October 24 2008 before even Patel paid for allotment Rana had been joined by another crook in the name of Bhogilal Chotalal Galatea who was introduced as the co-attorney of Patel alongside Rana himself.

    The duo entered into agreement for the sale of the property with the former MP Muturia and sold him the land at a whopping Sh12 million  of which the transfer to Muturia and registration was done on November 27 2008. Red flag was raised when Rajendra Sanghani and Jayant Rach went to collect rent at the controversial property as usual but were rebuffed with claims that the estate had a new tenant who was Muturia.

    The two sons of Ratilal Sanghani purchased the property from Patel at Sh100,000 in 1973 under HO Youtan Company Limited. 

    When the politician bought the property, it was registered in the name of HP Youtan and not Patel, prompting the sons to report the matter to the police. Which in turn Rana and Ganatra were arrested and charged with fraud and forgery at Kimani Law Courts under criminal case No E279 of 2021. 

    The Judge noted that Patel, obtained the renewal documents from Rana and Ganatra through misrepresentation, fraud and deceit. Judge thwarted Muturia‘s attempts to project himself as innocent buyer when he ignored the due diligence which could have alerted him that the property was registered in the name of HP Youtan.

  • KOFC Awards A Chinese Firm Sh3.1 Billion Controversial Bullet Manufacturing Tender

    KOFC Awards A Chinese Firm Sh3.1 Billion Controversial Bullet Manufacturing Tender

    Kenya Ordinance Factories Corporation (KOFC) which’s a state corporation under the ministry for Defense mandated to manufacture hardware, machinery and equipment.

    KOFC is based in Eldoret and is ISO 9001:2008 certified manufacturer of small arms ammunition and fabricated high precision tools and parts using latest technology. KOFC is Kenya’s only ammunition production firm and has two divisions: ammunition production division and general engineering division.

    It’s main customers include all Kenyan security agencies, approved licensed arms dealers in the country, approved government and international bodies. 

    Well sanitized information about the corporation but that’s not the case.

    KOFC has awarded a Chinese company- China North industries Corporation a disputed Sh3.1 billion tender to supply various bullets manufacturing materials. China Industries Corporation was given a notification to enter into contract for the supply of the materials and confirm they’re ready for the mission.

    Former KOFC managing Director Solomon Manambo signed the letter of the tender award for supply of assorted powder, primers, brass strips, links, bullets, copper clad steel, ingots and carbide tools.

    According to the letter dated June 2 2021, the powder and primers will cost Sh1.1 billion and assorted brass strips Sh1.3 billion while the carbide tools will cost about Sh120 million.

    The company was also asked to provide performance security of Sh300 million during the signing of the contract, which was done.

    Protests from some of the potential suppliers have claimed they would have offered better and lower prices than the one awarded to the winner. With one of the suppliers admitted he knew of a company that had offered lower price and would have supplied better services but was locked out. The prices by the winner company are exaggerated and KOFC know it.

    In cases of such tender award, the aim is always take the low cost candidates to save taxpayers money but in Kenya seems the winner is determined with the depth of the pocket of the candidate.

  • Da Place Lounge; Kisumu’s COVID-19 Epicenter.

    Da Place Lounge; Kisumu’s COVID-19 Epicenter.

    In the wake of fourth covid​19 catastrophic wave of delta variant, that led to Ministry of Interior together with Ministry of health put in place stringent measures in Western Kenya region to curb the upsurge of the cases after the May Madaraka day celebration in Kisumu whereby dusk-to -dawn curfew hours in the Western region was revised back from 10pm-7pm to 4 am while the rest of the country enjoys the privalege of 10pm to 4am. 

    But turns out that while others are being compliant with government directives, some are derailing the effort to curb the spread by flaunting rules boldy with balls. And as a matter of fact checking which’s a virtue at Kenya insights, with the help of our sources on the ground, we managed to do our due diligence to investigate and unravelled one notorius club – Da Place Lounge which has been flaunting the rules and protocols, superspreading the delta variant – flaunting curfew hours by keeping open past 7pm curfew time, filling up the club beyond capacity with no social distancing and stipulated safety measures. 

    A one on one with a covid19 survivor who sought anonymity, claimed to had contracted the virus after a party out with a group of ten friends at De place. The source was on job leave and so after partying out, just stayed indoors but after fours days, felt sore throat, Sinus congestion and runny nose of which are unique common with the delta variant but mistook the symptoms as just usual allergies, only for the condition to worsen to shortness of breath and had to be rushed to Jaramogi Oginga Odinga Teaching and Referral Hospital (JOOTRH) with the help of the neighbor and as an emergency case put on Oxygen support and later diagnosed with the delta variant after the samples were taken for test at KEMRI. 

    To confirm his source of infection, other friends whom the victim partied with also confirmed their positive infection in their WhatsApp group which they were in together and unfortunately one of the member lost life due to pre-existing condition.

    This investigation came after continued complains by the residents who are feeling at risk, innocent victims who’ve been infected as a result of contact tracing possibly originating from such places like De Place Lounge where masking is an option and not rule and so is social distancing.

    Below are the photographic evidences ​of a crowded business joint – Da Place lounge live and kicking past the 7 pm curfew hours. Taken few weeks ago  by our crew when 7 pm dusk-to-dawn curfew was still in place.

    In 2020 there were complains by Mamboleo estate residents concerning Da Place Lounge. The club hosted large crowds despite state’s direction of banning large public meetings. Kenya insights was informed of a popular show called Kikao which is held on Sundays. Popular celebrities from Nairobi like DJs, musicians and socialites are often invited to the club that attracts over 1,000 guests stuffed in the small club. 

    Kikao Sunday

     

    Comedian Jalang’o and DJ Joe Mfalme at Da Place
    Musician Masauti Kenya performing at Da Place

    Residents questioned why despite the curfew in place the club has been allowed to operate till morning in the full disregard of the law. There are allegations that traffic police officers stationed along Mamboleo-Kakamega-Kisumu road allow intoxicated drivers from the club to pass through undeterred.

    Question is just how powerful is the club’s owner that he’s operating with impunity and allowed to go about his business as usual. So brazen that the club advertises their events on huge billboards across the city. Eyes are now set on the senior police boss in Nyanza for not acting on the residents’ cries of being exposed to the deadly virus by allowing the club to operate as normal.

    Residents speaking to this site are also asking relevant authorities to look into allegations that the club’s owner Mr. Kennedy Angweng is involved in illicit liquor business. “Ask KRA and KEBS to pay a visit to his establishments and where he supplies his liquor to do a standard check. KRA should also take their time to look into the books and see if there’s any possibilities of tax evasion, believe they’ll find something to interest them.” Said a source.

    ”The club operates beyond allowed times. It’s open while night and whole Kisumu’s social class groups here.” Says another source.

    Apparently, Ken, the owner boasts of having the entire local police force in his pocket and nothing can happen to him. Worse, the authority enforcement drink from the same spot on credit to his amusement. “Huyu jamaa juzi alisomea OCS kama mtoto before curfew ya 7pm kutolewa, because wanapewa pesa kila mtu akiona.” A Boda Boda rider talking to Kenya Insights.

    “We’re having a particular problem with the club because most of our patients have traces to the club. It’s an issue we’ve raised with the county’s administration but nothing forthcoming. At first it was easily dismissive but now we can’t since the numbers are piling. Investigations should be launched abs they’ll all lead there. If the government is committed, they’ll find the answers. The club doesn’t observe Tanya set COVID-19 protocol and an epicenter of the virus’s spread in Kisumu.” An anonymous medical manager in Kisumu talking to Kenya Insights.

    The Delta variant is 60% more transmissible than the Alpha variant; first identified in the U.K; which in turn was about 50 percent more transmissible than the ancestral Wuhan strain. Delta has features that allow it to evade some of the body’s immune system defenses and has the highest transmissibility.

    As countries struggle to secure vaccines, public health experts are concerned that the Delta variant; the most dangerous and transmissible form of the corona-virus to date. As we accept and ponder over the harsh reality that Covid-19 is wreaking havoc to our families, communities and the nation, let us remain cautious, guard against the spread of the virus by getting vaccinated and adhering to the safety measures and government- WHO protocols to the latter and closure of transmission joints like Da Place. 

  • Video: How Senator Keg Enthusiasts are being duped with fake scratch cards in Diageo’s Exploitative Scheme “Shikisha na Senator Ushinde” promotion.

    Video: How Senator Keg Enthusiasts are being duped with fake scratch cards in Diageo’s Exploitative Scheme “Shikisha na Senator Ushinde” promotion.

    Kenya insights have on several occasions called out the perpetrators (Diageo, EABL, KBL) promoting ‘Shikisha form na Senator ushinde’ —who have continued to dup liquor enthusiasts from low-income settlement into their lottery scheme; Creating an illusionary shortcut to wealth to these group, Promoting excessive drinking as the promotion encourages participants to buy more mugs and drink more to increase their opportunity and increase their number of entries into the promotion as the more mugs you buy and drink, the more scratch cards you’re given. A game of Tyrany of numbers​. And every single message entry sent, the transaction cost is 10/- on each, unknown to the victims.

    Having done the incisive blogs previously on the scheme and how billions of shillings these perpetrators are making and faking cash prizes for winners, you’ll agree with us on every angle.

    In a video seen by Kenya insights from a keen customer who bought some mugs and on being given the scratch card —realised that the scratch card phase can easily peel off/ be peeled off before even a scratch is done on the phase and the lucky number can be read from the peel off posterior then sticked back on form without suspicion. ​Below is the evidence video.

    FullSizeRender

    From this trick, which seems to have been a top secret to the bar tenders or their agents on the ground – it turns out that you might all just been being given used scratch cards all along. This promotion might just turn out to be one of the most exploitative one in Kenya’s history.

    Check out the peeling off scratch phase without even a scratch

     

    A customer boasting of drinking mugs in a single joint and been given all those scratch cards at a go

     

     

    Peeling off