Kenya Insights

Author: Our Correspondent

  • Kenya Seeks to Lift Tea Export Ban to Iran, Eyes Middle East Market

    Kenya Seeks to Lift Tea Export Ban to Iran, Eyes Middle East Market

    Kenya has stepped up efforts to lift the current ban on tea exports to Iran in an attempt to gain access to one of the most promising market.  

    Kenya, the top exporter of black tea in the world, sees the Iranian market as a vital market for its premium produce and as a possible engine for reviving its tea value chain.

    Speaking during a meeting with Iranian business groups, Agriculture Cabinet Secretary Mutahi Kagwe noted that Kenya is committed to strengthening bilateral trade ties and ensuring high-quality tea reaches global markets.

    “Reopening access to Iran’s robust market could be a game changer for tea farmers and the entire tea value chain.” CS Kagwe said.

    During the meeting the leaders discussions also focused on exploring expanded trade opportunities not only with Iran but across the broader Middle Eastern and Central Asian.

    The CS was accompanied by the Amb of the Republic of Kenya to the UAE Kenneth Milimo, Kenya Tea Development Agency (KTDA) Holdings Ltd Chair Chege Kirundi and the CEO Wilson Muthaura.

    The meeting signals Kenya’s renewed diplomatic and economic push to strengthen bilateral ties, ensure stable markets for its agricultural exports, and position Kenyan tea competitively on the global stage.

    According to Tea Board of Kenya (TBK), during the year 2024, the total earnings from tea amounted to Kshs. 215.21 Billion, out of which Kshs. 181.69 Billion was earned from exports, Kshs. 18.00 Billion from local sales and Kshs. 15.52 Billion from committed stocks.

    This was an increase of 9% from the marketed value of Kshs. 196.97 Billion recorded in 2023.

    From the total marketed value, the exports earnings recorded improved performance of 1% (Kshs. 1.12 Billion) to stand at Kshs. 181.69 Billion from Kshs. 180.57 Billion recorded in 2023 attributed to increased export volume by 14% (71.59 Million Kgs) from 522.92 Million Kgs recorded in 2023 to 594.50 Million Kgs.

    In the same year 2024, Kenya tea was shipped to ninety-six (96) export destinations compared ninety-two (92) in the year 2023.

    Pakistan maintained its position as the leading export destination for Kenya tea having imported 206.27 Million Kgs, which accounted for 34.7% of the total export volume.  In terms of value, the consignment to Pakistan was worth Kshs. 70 Billion.

    Other key export destinations for Kenya tea were Egypt whose import volume was 86.90 Million Kgs worth Kshs. 23.96 Billion; UK (57.44 Million Kgs valued at Kshs. 16.99 Billion); UAE (30.50 Million Kgs valued at Kshs. 10.27 Billion); Russia (28.46 Million Kgs, Kshs. 7.43 Billion); India (17.13 Million Kgs, Kshs. 3.94 Billion); Saudi Arabia (15.92 Million Kgs, Kshs. 6.02 Billion); Yemen (14.13 Million Kgs, Kshs. 5.52 Billion); Iran (13 Million Kgs, Kshs. 4.26 Billion); and China (12.42 Million Kgs, Kshs. 2.73 Billion).

  • Fine Spinners Limited Faces Major Setback in Tax Dispute with KRA

    Fine Spinners Limited Faces Major Setback in Tax Dispute with KRA

    A company linked to prominent Kenyan billionaire Jaswinder Bedi, Fine Spinners Limited, has been dealt a significant blow by the Tax Appeals Tribunal in a high-stakes tax dispute with the Kenya Revenue Authority (KRA).

    The tribunal upheld KRA’s decision to impose a higher Capital Gains Tax (CGT) and apply an updated exchange rate on the sale of a Nairobi property, ordering the textile manufacturer to pay Sh81.3 million in taxes and interest.

    The dispute centers on the sale of a property in Nairobi’s Industrial Area to Laborex Limited, a pharmaceutical distributor, for $6 million (approximately Sh862.2 million at the July 2023 exchange rate of Sh140.37).

    Fine Spinners argued that the transaction was finalized in December 2022, when the CGT rate was 5% and the exchange rate was Sh120, valuing the property at Sh720 million.

    This would have resulted in a CGT liability of Sh26 million, which the company claims it paid in January 2023.

    However, KRA contended that the transaction was completed on July 10, 2023, as evidenced by the payment of stamp duty on that date.

    At that time, the CGT rate had been tripled to 15% under the Finance Act of 2023, and the exchange rate had risen to Sh140.37.

    The tribunal, chaired by Christine Muga, sided with KRA, ruling that the transfer and payment occurred in July 2023.

    Consequently, Fine Spinners was assessed a CGT of Sh77.8 million, plus Sh3.9 million in interest, totaling Sh81.3 million.

    “The Tribunal finds and holds that the Appeal fails,” the five-member bench declared, dismissing Fine Spinners’ appeal to reverse KRA’s assessment.

    The tribunal further noted that CGT liability is triggered when the seller receives full payment, not when the property transfer is registered.

    Fine Spinners’ claim that delays by the Ministry of Lands caused the late transfer was rejected, as no evidence was provided to show payment was received before July 2023.

    The ruling marks a significant moment in Kenya’s evolving tax landscape, particularly for the property market, which has seen increased scrutiny following the tripling of the CGT rate in January 2023.

    The government’s move to raise the tax rate from 5% to 15% was aimed at capitalizing on the booming real estate sector and a surge in mergers and acquisitions.

    Fine Spinners had challenged KRA’s assessment on March 11, 2024, arguing that the exchange rate applied was incorrect and that the transaction predated the CGT hike.

    However, KRA’s review of the company’s records, including the July 2023 stamp duty payment, solidified its position. The company’s objection was overruled, leading to the tribunal appeal on June 21, 2024.

    This case underscores the complexities of tax compliance in property transactions and the importance of precise timing in determining tax liabilities.

    For Fine Spinners, the tribunal’s decision not only imposes a hefty financial burden but also highlights the risks of miscalculating tax obligations in a rapidly changing regulatory environment.

    As Kenya continues to tighten its tax regime, businesses and investors will need to navigate these challenges with greater diligence to avoid similar disputes.

    For now, Fine Spinners must contend with the tribunal’s ruling, which serves as a stark reminder of KRA’s resolve to enforce compliance in high-value transactions.

  • Parliament Orders Forensic Audit of TUK Amid Sh11 Billion Debt Crisis and Staff Unrest

    Parliament Orders Forensic Audit of TUK Amid Sh11 Billion Debt Crisis and Staff Unrest

    Members of Parliament have called for a special forensic audit of the Technical University of Kenya (TUK), citing worsening financial troubles that have paralyzed operations and disrupted learning at the institution.

    The National Assembly’s Public Investments Committee on Governance and Education, chaired by Bumula MP Wanami Wamboka, directed the Auditor General to conduct an audit covering the period from 2013 to date and submit a report within three months.

    “There is more than meets the eye. The committee directs that a forensic audit [be] carried out within three months, starting from 2013,” Wamboka stated.

    TUK’s financial crisis has spiralled with stakeholders calling for urgent government intervention to address instability that has left staff unpaid.

    Documents tabled before the committee outlined various challenges facing the university’s workforce, including delayed salaries, unremitted statutory deductions, and the collapse of the institution’s pension scheme.

    Appearing before the committee, former Vice Chancellor Francis Oduol explained that since the university attain a charter, it has faced chronic financial constraints that have only worsened over time.

    DUC model blamed

    Oduol partly attributed the situation to the differentiated unit cost funding model, which he argued has increased financial strain on public universities.

    “Since 2013, we’ve been experiencing financial difficulties. We have never fully paid the statutory deductions; what we’ve had is a partial payment plan,” Oduol stated.

    However, the committee chair dismissed this explanation, noting that the funding model applies across all public universities.

    “We have 66 universities. The differentiated unit cost funding model is not unique to TUK. If it’s about the model, then all institutions would be in crisis. It cannot be the only reason,” Wamboka remarked.

    The Auditor General’s report flagged TUK, which received its charter in 2013, among twenty-three public universities facing severe financial instability. As of June 30, 2024, the university’s pending bills had reached Sh11 billion.

    Vice Chancellor Benedict Mutua told the committee that the institution is struggling under a Sh3.4 billion wage bill, which has made it impossible to pay staff for months.

    “The first step we are taking is staff rationalization within each department by reviewing the teacher-student ratio. We are looking at a Sh3.4 billion wage bill, which we are working to reduce,” he noted.

    Wamboka said the committee will summon officials from the Ministry of Education and TUK management to deliberate on a sustainable way forward.

    “We will issue directives on how the university should [be] run after a meeting with the Ministry of Education. There is no academic excellence at TUK given the current state of affairs,” he concluded.

  • Widow Seeks Justice as Nairobi Car Dealer Defies Court Orders in Fraud Scandal

    Widow Seeks Justice as Nairobi Car Dealer Defies Court Orders in Fraud Scandal

    A grieving widow has come forward with allegations of fraud and defiance of court orders against Erick Kimathi, Director of Executive Super Rides, a car dealership along Ngong Road, Nairobi.

    The widow, whose identity is withheld for her safety, claims Kimathi unlawfully repossessed a fully paid Toyota Land Cruiser V8, fraudulently transferred it, and sold it despite court orders prohibiting such actions.

    According to the widow, her late husband purchased the vehicle from Executive Super Rides before his passing.

    When she approached Kimathi to collect the logbook, he allegedly delayed, claiming it was not ready.

    Months later, he demanded payment for a supposed debt owed by her deceased husband—a claim she asserts is baseless, as the vehicle was fully paid for.

    In a shocking turn of events, Kimathi reportedly sent auctioneers to forcibly seize the vehicle from the widow.

    The vehicle’s tracker was disabled immediately, and within a day, ownership was fraudulently transferred to one of Kimathi’s relatives. “It was a calculated move to deny me my rightful property,” the widow said.

    Seeking justice, the widow took the matter to court. Judicial rulings ordered the vehicle’s return and prohibited further transfers, with a restriction placed at the National Transport and Safety Authority (NTSA).

    However, Kimathi allegedly defied these orders, hiding the vehicle after losing two appeals against the enforcement rulings.

    Court documents provided by the widow confirm these orders and Kimathi’s non-compliance.

    Further investigation by the widow revealed that the vehicle, originally pearl white, was repainted silver and sold to Jennifer Koinnante Kirtapei in Nanyuki, despite active court orders and NTSA restrictions.

    “This is not just about my car—it’s about impunity and disregard for the law,” the widow stated.

    Adding to her frustration, Kimathi and his legal team have repeatedly failed to appear in court for contempt proceedings, with his lawyers citing various excuses.

    The widow provided extensive documentation, including court orders, NTSA records, and evidence of the illegal sale and repainting, to support her claims.

    This case highlights broader concerns about accountability and the rule of law in Kenya’s business sector.

    The widow is now appealing for public attention to pressure authorities to act.

    “I’m a widow seeking justice. I believe exposing this injustice will hold Erick Kimathi accountable,” she said.

    Efforts to reach Kimathi for comment were unsuccessful by press time. Authorities have yet to publicly address the allegations of fraud and contempt of court.

    As this story develops, the widow’s fight for justice underscores the challenges faced by ordinary Kenyans against powerful individuals who flout legal processes. The public awaits whether this exposure will prompt swift action to uphold the rule of law.

  • Family Feud Turns Criminal: Aircraft Firm Director Charged with Sh100M Theft

    Family Feud Turns Criminal: Aircraft Firm Director Charged with Sh100M Theft

    Infighting among siblings has led to the arrest and charging of a director of an aircraft firm for alleged theft of Sh100 million.

    Nicholas Njoroge Ngatia, the director of Flex Air Charter limited, was arraigned before a Milimani court over claims of stealing from the company.

    Njoroge appeared before Milimani Senior Principal Benmark Ekhubi where he denied several charges.
    The first count stated that Njoroge stole Sh.32,777,320.00 from Flex Air Charters Limited which came into his possession by virtue of his job.

    It is alleged that he committed the offence on diverse dates between 30 of November 2020 and 31 of August 2022, at Co-operative Bank of Kenya, being a director of Flex Air charters Limited.

    On the second count, Njoroge is alleged to have stolen Sh27.1 million, on diverse dates between 28 of July 2022 and 18 of February 2023 at Guaranty Trust Bank (Kenya) limited, being a director of the firm.

    Njoroge was further accused of stealing Sh.30,086,288.00 from the firm on diverse dates between 2nd August 2021 and 28 of February 2023 at 1 &M Bank Limited.

    On the last count, Njoroge is alleged to have stolen from the firm USD57,394 from its US Dollars account, an offence he allegedly committed on diverse dates between 22 of December 2020 and 28 of May 2022 at Co-operative Bank.

    The court ordered him to deposit cash bail of Sh5 million in court, to secure his release.

  • 2.9 Million Taxpayers benefit from KRA’s Waiver of Sh158 billion under Tax Amnesty

    2.9 Million Taxpayers benefit from KRA’s Waiver of Sh158 billion under Tax Amnesty

    The Kenya Revenue Authority (KRA) has waived Sh158 billion in penalties, fines, and interest under the ongoing Tax Amnesty Programme which was launched on 27th December 2024.

    KRA Commissioner, Large and Medium Taxpayers Mrs. Rispah Simiyu in a statement indicated that this has provided relief to over 2.9 million taxpayers who qualified for amnesty as at 9th April 2025.

    “Since the rollout of the tax amnesty, KRA has also collected Sh10.9 billion in principal tax payments. The Tax Amnesty Programme provides an opportunity for taxpayers to clean their tax records through offering a waiver on penalties, interest and fines for tax debts accrued up to 31st December 2023,” said Mrs. Simiyu.

    She explained that the Programme, which runs until 30th June 2025, underscores KRA’s commitment to helping taxpayers resolve past tax issues and regularize their tax compliance.

    According to Mrs Simiyu, this initiative is part of KRA’s broader efforts to foster voluntary compliance and provide relief to taxpayers burdened by past debts. The initiative, she added also offers a unique chance to settle tax matters on favourable terms and to move forward on a clean slate.

    Simiyu explained that there is also the Application Requirement for Taxpayers with outstanding principal taxes for periods up to 31st December 2023 who must apply via the iTax system and submit a structured payment plan for full settlement of the outstanding principal taxes by 30th June 2025.

    “Tax debts arising from 1st January 2024 and after do not qualify for amnesty. All penalties, interest, and principal taxes for debts incurred after this date remain payable,” she said.

    Mrs. Simiyu encouraged taxpayers with ongoing tax disputes to resolve the disputes through the Alternative Dispute Resolution framework (ADR) to ensure a swift resolution before the amnesty timeline lapses.

    “KRA encourages all taxpayers to act promptly and take advantage of the tax amnesty before the 30th June 2025 deadline,” advised Mrs. Simiyu.

  • Inside General Ogolla’s Will: Parents and Relatives Left Out Of His Sh150M Estate

    Inside General Ogolla’s Will: Parents and Relatives Left Out Of His Sh150M Estate

    As Kenya marked the first anniversary of General Francis Ogolla’s tragic death, a discreet filing at Nairobi’s High Court has reignited public fascination with the late Chief of Defence Forces.

    His will, filed on June 3, 2024, by Miller & Company Advocates has sparked intense debate for excluding his parents and relatives, leaving his substantial estate to his immediate family.

    The document, penned in 2012, offers a rare glimpse into the private convictions of a man whose legacy transcended the battlefield.

    General Ogolla, who perished in a helicopter crash on April 18, 2024, in Elgeyo Marakwet County, crafted his will with the same precision that defined his military career.

    Written in the presence of then-colleagues Lieutenant Colonel John Njenga and Lieutenant Colonel Stephen Sane, the 2012 document outlined a clear distribution of his estimated KSh 150 million estate, comprising property investments, nine bank accounts, three vehicles, and shares in Felora Investment Firm and a Sacco.

    The will, deposited before Justice Patricia Nyaundi, centered exclusively on his wife, Aileen Ogolla, and their two children, Lorna Achieng and Joel Rabuku, leaving his parents, Mzee Joel Okech Oyieyo and his wife, and other relatives with nothing.

    A Meticulous Blueprint for His Family

    The will stipulated that Aileen would receive 50% of the estate, including all service benefits such as emoluments, pensions, gratuities, and compensation, as well as an apartment on Nairobi’s Hatheru Road.

    The remaining 50% was to be equally shared between Lorna and Joel.

    In the event of Aileen’s absence, the apartment’s ownership would pass equally to the children.

    Lorna was designated to inherit a property near Pangani Shopping Centre, all shares at NIC Securities, and a Bible once owned by her paternal grandmother—a poignant nod to family heritage.

    Joel, meanwhile, was allocated a property in Siaya, another near Pangani, Nairobi, and all of his father’s personal belongings and artefacts.

    Any assets not explicitly mentioned were to be split equally between the siblings.

    In a striking directive, Ogolla ordered that all his personal clothing be burned, stating, “I direct that ALL my personal clothing be disposed of by burning”.

    The will also reflected his wishes for a modest funeral, specifying burial within 72 hours without a coffin, a request honored when he was laid to rest on April 21, 2024, in Siaya County.

    Exclusion of Parents and Relatives Sparks Controversy

    The exclusion of Ogolla’s parents, particularly his nearly 101-year-old father, has stirred controversy, given Kenya’s cultural expectation of providing for elderly kin.

    The will’s blunt dismissal of other relatives—“To all my relatives – good luck”—has further fueled public discourse.

    Sources suggest Ogolla may have supported his parents during his lifetime, pointing to their well-maintained homestead in Siaya as evidence.

    However, the revelations of the will have left many to question whether the omission was intentional or reflective of prior provisions.

    “It’s surprising for a man of his stature to leave his parents out,” said Mary Atieno, a Siaya resident.

    “But if he took care of them before, maybe he felt his duty was done.” Others view the decision as a private matter, with Nairobi-based advocate Jane Wambui noting that Kenya’s Law of Succession Act grants individuals discretion in estate allocation.

    “If lifetime support was provided, excluding parents from a will is legally sound,” she said. Still, the cultural weight of filial piety has amplified scrutiny, with social media debates oscillating between defending Ogolla’s choices and criticizing them as a breach of tradition.

    A Legacy Beyond the Uniform

    Ogolla’s estate, detailed in the will, underscores his financial acumen. His wealth included six properties—four in Siaya and two in Central Alego and East Alego—two residential houses, and significant investments. This portfolio, built over decades of service that earned him accolades like the Moran of the Golden Heart, reflects a disciplined approach to generational planning. The will’s focus on his nuclear family aligns with his private persona, described by those close to him as principled and deeply devoted.

    Yet, the document also reveals a man unafraid of unconventional choices. The directive to burn his clothing and forgo a coffin speaks to a humility that contrasted with his public stature. “This was a man who valued simplicity in death, just as he valued clarity in life,” said a former colleague who requested anonymity. The will, filed through the reputable Miller & Company Advocates, stands as a testament to Ogolla’s meticulous nature, crafted long before his untimely death at age 62.

    A Nation Reflects

    As Kenya reflects on Ogolla’s towering legacy—from commanding the Kenya Defence Forces to shaping national security—the will has added a complex layer to his story.

    It portrays a leader whose duty extended beyond the nation to the quiet dignity of family planning, even if his choices have sparked debate.

    Whether the exclusion of his parents and relatives was a pragmatic decision rooted in prior support or a point of contention, it has cemented Ogolla’s narrative as one of love, duty, and legacy.

    The controversy surrounding the will underscores the challenges public figures face in balancing personal decisions with societal expectations.

    For now, General Ogolla’s final wishes remain a topic of national conversation, a reminder that true leadership is often measured not just in public acts but in the private blueprints left behind.

  • Okiya Omtatah and Others Sues President Ruto, Uhuru For Sh13 Trillion Kenya’s Odious Debt Crisis

    Okiya Omtatah and Others Sues President Ruto, Uhuru For Sh13 Trillion Kenya’s Odious Debt Crisis

    A bombshell petition filed in Kenya’s High Court has accused former President Uhuru Kenyatta and President William Ruto of overseeing the accumulation of Kshs 13.1 trillion in odious debt, described as loans borrowed unlawfully and not used for the benefit of Kenyans.

    The petition, led by activist Okiya Omtatah and four co-petitioners, alleges rampant constitutional violations, fraudulent financial practices, and systemic oversight failures that have plunged the nation into a debt crisis, with taxpayers bearing the brunt.

    What is Odious Debt?

    The petition defines odious debt as loans incurred by government officials without public consent, in violation of the law, or for purposes such as corruption, repression, or personal enrichment, rather than public benefit. According to the petitioners, Kenya’s legal framework, including the Constitution and the Public Finance Management Act (PFMA) of 2012, clearly governs public borrowing, restricting it to financing development projects or managing short-term cash flow. Any deviation from these stipulations renders the debt odious and, therefore, not repayable by the public.

    Scale of the Crisis

    The petitioners claim Kenya’s total outstanding public debt, as reported by the Central Bank of Kenya on December 27, 2024, stands at Kshs 10.79 trillion, comprising Kshs 5.6 trillion in domestic debt and Kshs 5.188 trillion in external debt. However, they argue the odious portion amounts to Kshs 13.1 trillion, factoring in overpayments and discrepancies between the Central Bank and National Treasury records. Of this, Kshs 6.95 trillion is traceable to unauthorized borrowings over the past decade (2014/2015 to 2024/2025), including fraudulent internal debt rollovers worth Kshs 2.5 trillion.

    The petition highlights Eurobond loans totaling Kshs 919.45 billion (USD 7.1 billion) borrowed between 2014 and 2021, and an additional Kshs 208.32 billion (USD 1.46 billion) in February 2024, as prime examples of odious debt. These loans, the petitioners assert, were not tied to development projects, were not approved by Parliament, and violated constitutional provisions by being used to repay existing debts—a recurrent expenditure forbidden under the law.

    Allegations Against Key Figures

    The petition names former President Kenyatta and President Ruto as central figures in the debt scandal. Kenyatta is accused of borrowing Kshs 6.607 trillion between 2014 and 2022, of which Kshs 4.606 trillion was unauthorized and unaccounted for. Ruto, in just two and a half years since 2022, is alleged to have borrowed Kshs 3.135 trillion, with Kshs 2.25 trillion deemed odious. The petitioners demand that both leaders, along with former and current officials—including Treasury Cabinet Secretaries, the Controller of Budget, the Auditor-General, and others—refund the principal amounts plus interest and costs.

    Oversight Failures and Institutional Complicity

    The petition also targets key oversight institutions for failing to curb the crisis. The Controller of Budget is accused of authorizing withdrawals from the Consolidated Fund to repay odious loans, while the Auditor-General is faulted for not auditing the legality and effectiveness of Eurobond proceeds and other debts. The National Assembly faces criticism for amending the PFMA in 2014 without Senate involvement, introducing provisions that allowed loan proceeds to bypass the Consolidated Fund and permitted the Executive to issue sovereign bonds without parliamentary approval.

    The IMF’s Role

    In a bold move, the petitioners have sued the International Monetary Fund (IMF) for advancing an “on-lent loan” hidden under Special Drawing Rights (SDRs) disbursements, which was rolled over in 2023/2024 and 2024/2025 at Kshs 10 billion annually. They argue this loan violates Kenyan borrowing laws and seek a declaration that the IMF can be sued in Kenyan courts for lending money in contravention of national law.

    Financial Burden on Taxpayers

    The petition underscores the crippling impact of odious debt on Kenyans, noting that 86% of tax revenue in the 2024/2025 financial year—approximately Kshs 1.94 trillion—is budgeted for debt repayment. With 71% of the public debt classified as odious, the petitioners calculate that 82% of every tax shilling, including 82% of the 30% corporate tax, is funneled toward servicing these illegitimate loans. This, they argue, exacerbates Kenya’s economic woes, with the government resorting to unsustainable borrowing to finance unrealistic expenditure estimates.

    Discrepancies and Fraudulent Practices

    The petition reveals stark discrepancies in financial records. For instance, while the National Assembly authorized Kshs 2.79 trillion in borrowings from 2014 to 2024, actual borrowings reached Kshs 9.74 trillion, leaving Kshs 6.95 trillion unaccounted for. In the 2014/2015 financial year alone, Kshs 270.78 billion was borrowed beyond the budgeted amount, with no trace of its use. The petitioners also highlight a suspicious Kshs 19.65 billion payout in January 2025, disguised as state officers’ salaries and allowances, which they suspect funded Kenya’s failed bid for the African Union chairmanship.

    Call for Justice

    The petitioners are seeking sweeping relief from the High Court, including declarations that odious debts are not repayable by Kenyans, that lenders advancing illegal loans cannot pursue repayment, and that unconstitutional PFMA provisions be quashed. They also demand a permanent prohibition on unauthorized borrowing and repayment of odious debts, alongside orders compelling implicated officials to refund the misappropriated funds.

    A Nation at a Crossroads

    As Kenya grapples with this unprecedented legal challenge, the petition raises critical questions about governance, accountability, and the future of public finance. Omtatah and his co-petitioners argue that the odious debt crisis is not just a financial burden but a betrayal of the Kenyan people, who have been forced to pay for loans that never served their interests. The outcome of this case could redefine Kenya’s approach to borrowing and set a global precedent for addressing odious debt.

    [pdf-embedder url=”https://cms.kenyainsights.com/wp-content/uploads/2025/04/Odious-Debt-Press-Summary.pdf” title=”Odious Debt – Press Summary”]

  • Kenya’s Debt Crisis: MP Ndindi Nyoro Warns of Default Risk as Tensions with Ruto Grow

    Kenya’s Debt Crisis: MP Ndindi Nyoro Warns of Default Risk as Tensions with Ruto Grow

    Kiharu Member of Parliament Ndindi Nyoro has issued a stark warning over Kenya’s ballooning debt, cautioning that the country risks joining Africa’s growing list of defaulters.

    Nyoro said the public debt—now estimated at Sh11 trillion—is spiralling out of control, and any move to renegotiate it could trigger even worse economic fallout.

    “The country is edging dangerously close to default,” Nyoro said at the Institute of Public Finance annual budget review, adding that ongoing debt restructuring talks, including a planned visit to China by President William Ruto, signal just how fragile the situation has become. “Any indication that we are unable to service our loans is more catastrophic to our economy.”

    The outspoken MP, once a key ally of President Ruto and seen as his blue-eyed boy after the 2022 campaign, has increasingly distanced himself from the government.

    His fallout with the president became apparent late last year when he refused to back the impeachment of Deputy President Rigathi Gachagua—now one of Ruto’s fiercest critic.

    Shortly after, Nyoro was removed as chairman of the influential Budget and Appropriations Committee.

    The former chair said Kenya’s debt has grown from under Sh2 trillion to Sh11 trillion over the past 12 years.

    Under President Ruto’s administration alone, the debt has surged by more than Sh2 trillion, rising from Sh8.7 trillion to Sh10.9 trillion as of December 2024, according to Central Bank data. Local lenders account for 54 percent of this debt, while 46 percent is owed externally.

    As the Treasury prepares the 2025/2026 budget—with projected spending of Ksh.4.2 trillion—Nyoro warned that debt servicing will consume nearly a quarter of that amount. Interest payments alone are expected to cost the country about Ksh.1 trillion, with Ksh.750 billion set aside for domestic debt and Ksh.200 billion for external repayment.

    Nyoro also criticized the government’s aggressive tax regime, saying it has backfired on the economy. “Increasing taxes to get more revenue is a fallacy,” he said. “You end up distorting economic decisions. People stop spending and investing—and that means even the little revenue you hoped to raise never materializes.”

    The remarks expose a deepening rift between the MP and the president, a dramatic shift from 2022 when Nyoro was one of Ruto’s most visible campaigners in the vote-rich Central Kenya region.

    Now, as economic pressures mount, Nyoro has re-emerged as a vocal critic of the administration he once championed, joing the voices of dissent from Mt Kenya and other parts of the country.

  • Kenya’s Bold Move to Exit FATF Grey List with Sweeping Anti-Money Laundering Reforms

    Kenya’s Bold Move to Exit FATF Grey List with Sweeping Anti-Money Laundering Reforms

    In a significant move to get off the Financial Action Task Force (FATF) grey list, Kenya’s National Assembly passed the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, on April 16.

    The Bill, which amends ten existing Acts of Parliament, aims to address longstanding technical shortcomings in Kenya’s legal infrastructure, particularly in combating money laundering, terrorism financing, and proliferation activities.

    This legislative action comes at a critical juncture as Kenya grapples with its recent grey-listing by the Financial Action Task Force (FATF), signalling a renewed commitment to align with global financial standards.

    A Legislative Response to Global Pressure

    The passage of the Bill marks a pivotal moment for Kenya, which has faced increasing international scrutiny over its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks.

    In February 2024, the FATF placed Kenya on its grey list, citing deficiencies in the country’s strategy for prosecuting money laundering offences and its broader AML/CTF regime.

    This designation, as highlighted by Global Financial Integrity, poses significant risks to Kenya’s economy, potentially reducing foreign direct investment (FDI) inflows by 3 per cent, portfolio inflows by 2.9 per cent, and other investment inflows by 3.6 per cent of GDP—catastrophic figures for a nation already balancing trade deficits and a growing debt burden.

    The Bill directly addresses these concerns by introducing amendments to key legislation, including the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA), the Prevention of Terrorism Act, and the Betting, Lotteries, and Gaming Act, among others.

    A notable provision expands the definition of “economic crime” to include the laundering of proceeds from corruption—a pervasive issue in Kenya, as identified in the National Risk Assessment (NRA), which also flagged fraud, forgery, and drug-related offences as major threats.

    Strengthening Oversight and Accountability

    One of the Bill’s cornerstone reforms is the empowerment of regulatory bodies to enforce compliance more effectively.

    The Financial Reporting Centre (FRC), established under POCAMLA in 2009, gains greater operational independence, a move that echoes reforms introduced in the 2023 version of the Bill, which was signed into law by President William Ruto.

    The FRC’s enhanced autonomy, achieved by excluding it from the definition of a State Corporation, aims to insulate it from political interference and improve its ability to monitor suspicious transactions.

    Additionally, the Capital Markets Authority (CMA) has been granted expanded powers to ensure that its licensees adhere to AML/CTF regulations, a critical step given the increasing sophistication of financial crimes in Kenya’s capital markets.

    The Bill also mandates the Central Bank of Kenya (CBK) to supervise financial institutions and their agents, further tightening the regulatory net.

    This legislation reflects the the government’s broader agenda to restore Kenya’s credibility as a reliable regional and global financial partner—a reputation tarnished by the FATF grey-listing.

    In 2023, Ruto signed a similar AML/CTF amendment into law, which introduced provisions for the extradition of fugitive criminals who consent to be transferred to requesting states. The 2025 Bill builds on this foundation, addressing gaps that persisted despite earlier reforms.

    Economic and International Implications

    Kenya’s grey-listing by the FATF has had tangible economic consequences, as noted in prior analyses. The decline in FDI and investment inflows threatens to exacerbate the country’s economic challenges, particularly its trade deficit and debt burden.

    By addressing the technical deficiencies highlighted by the FATF, the Bill could pave the way for Kenya’s removal from the grey list, restoring investor confidence and stabilising the economy.

    Moreover, the Bill’s focus on combating terrorism financing is particularly relevant given Kenya’s geopolitical context. As a key player in the East African region, Kenya has long been a target for terrorist groups, with financing networks often exploiting weaknesses in the financial system.

    Strengthening the legal framework to disrupt these networks not only enhances national security but also positions Kenya as a leader in regional counter-terrorism efforts.

    Despite the optimism surrounding the Bill’s passage, challenges remain. The effectiveness of the new legislation will depend on its implementation—a perennial issue in Kenya, where robust laws have often been undermined by weak enforcement and corruption.

    The National Risk Assessment’s findings that recoveries from crimes like fraud and drug trafficking remain low compared to corruption-related recoveries underscore the need for a more aggressive prosecution strategy, an area where Kenya has historically lagged.

    Additionally, while the empowerment of agencies like the FRC and CMA is a positive step, these institutions will require adequate resources and training to fulfil their expanded mandates. Without sufficient funding and capacity building, the reforms risk becoming symbolic rather than substantive.

    The passage of the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, represents a critical step in Kenya’s journey toward financial integrity and global compliance.

    By addressing deficiencies in its AML/CTF framework, Kenya is signaling to the international community its commitment to combating financial crimes and terrorism financing. However, the true test lies in the implementation of these reforms and the government’s ability to translate legislative intent into tangible outcomes.

    As Kenya navigates the economic fallout of its FATF grey-listing, the stakes could not be higher. With the right political will, institutional support, and international cooperation, this Bill could mark a turning point in Kenya’s fight against financial crime, paving the way for a more secure and prosperous future.

  • Private Firms Could Shutdown eCitizen At Will, House Told

    Private Firms Could Shutdown eCitizen At Will, House Told

    The eCitizen platform risks abrupt shutdown if the developers’ contract is terminated, sparking fresh concerns over acess control over the system and its security implications.

    Contractual documents tabled before the National Assembly’s Departmental Committee on Administration and Internal Security reveal that, despite repeated assurances from senior government officials, the platform is not fully owned by the state.

    The contract, signed on May 25, 2023, stipulates that the private developers retain proprietary rights and reserve the legal authority to withdraw the platform’s infrastructure in the event of termination.

    “In the event of termination, howsoever occurring, the suppliers shall be entitled to rescind, withdraw or otherwise uninstall all their proprietary infrastructure and resources, including all technical infrastructure whether software or otherwise,” the contract reads in part.

    The firms behind the platform—Webmasters Kenya Ltd, Pesa Flow Ltd, and Olive Tree Media Ltd—are also shielded from liability.

    The agreement indemnifies the developers against any claims arising from data loss, system downtime, or service disruption.

    “The purchaser shall… fully indemnify the suppliers against any claims against, loss of data, system downtime or unavailability,” the document states.

    Parallel probe

    These revelations have sparked alarm among lawmakers, with two parliamentary committees now launching parallel investigations.

    Legislators fear that Kenya’s digital infrastructure and financial systems could be compromised or held hostage by private interests.

    Homa Bay Town MP Peter Kaluma described the situation as a serious national security and financial risk, especially considering the billions invested in the system.

    “This is very scary. The government has put itself in a vulnerable position. If this contract stands, the suppliers can switch off the entire system and walk away,” Kaluma said.

    Lari MP Mburu Kahangara questioned the government’s past assurances regarding E-Citizen’s ownership in light of the newly disclosed contract.

    “We’ve repeatedly sought clarity from the ministry, and we were told the platform is state-owned. But the contract tells a different story,” Kahangara noted.

    The committee also raised governance concerns after discovering that the contract was not signed by the ICT Principal Secretary, who is the official accounting officer for the ministry.

    Instead, the document bears the signature of ICT Authority CEO Stanley Kamanguya.

    “Where is the PS’s signature? This is a contract of significant magnitude. Why are the signatories limited to a CEO? It raises serious questions about governance and accountability,” said Vice Chair Dido Raso (Saku).

    Committee Chair Gabriel Tongoyo criticized the ICT department for allegedly withholding the contract for more than two months.

    “This document should have been availed much earlier. The delay appears intentional, as though someone was trying to avoid scrutiny. We will not tolerate such evasiveness,” he stated.

  • MPs Rejects Scandalous List Of 25,000 Promoted Teachers Citing Bias

    MPs Rejects Scandalous List Of 25,000 Promoted Teachers Citing Bias

    Members of the National Assembly’s Education Committee have unanimously rejected the Teachers Service Commission (TSC) list of 25,252 teachers promoted earlier this year, accusing the commission of unfair practices and disregarding principles of equity.

    The rejection came after the committee held a tense meeting with TSC officials, including Chief Executive Officer Nancy Macharia and Chairperson Jamleck Muturi.

    The MPs argued that the promotions, which had been celebrated by some, were skewed and unfair, with certain counties benefiting disproportionately from the advancements.

    At the heart of the legislators’ grievances was the perceived imbalance in the number of teachers promoted across counties, with some regions, despite having fewer teachers, receiving higher numbers of promotions.

    “Equity is lacking in this entire document, and we can’t proceed like this. You had a duty, we gave you money, and what you have done is a disservice to this country and the teachers,” said Tinderet MP Julius Melly, who chairs the committee.

    The MPs are now demanding that TSC provide additional documentation to substantiate the promotion process.

    The committee has requested a list of all teachers who applied for promotion in each sub-county, the marks scored by each teacher during interviews, and a breakdown of how many teachers in each sub-county have served for over three years.

    “We cannot allow this commission to promote a person every year, promote teachers of an entire county leaving out the rest of the country,” Melly said, stressing that the promotions should reflect fairness and transparency.

    The issue has caused significant concern across the country, especially as the committee found that teachers with less experience, some having served for only one year, were promoted over those with decades of service.

    Luanda MP Dick Maungu expressed his dissatisfaction, calling the situation “an injustice to teachers and the teaching profession.”

    He pointed out that teachers who had been promoted last year were once again promoted this year, raising questions about the validity and fairness of the process.

    Several MPs, including Baringo North’s Joseph Makilap, voiced their frustrations with the lack of equity and fairness in the promotion criteria.

    “How was the principle of affirmative action applied in this promotion? We need to see the raw data from sub-county and county levels so that we see why people who scored 100 per cent during interviews were not promoted,” he said.

    Scandalous

    Igembe North MP Julius Taitumu went as far as labelling the promotions as “the most scandalous ever in the teaching profession.”

    He argued that the promotion process failed to meet the standards of fairness and transparency.

    Moiben MP Phylis Bartoo also joined the chorus of discontent, calling the entire promotion process biased.

    The Kenya National Union of Teachers (KNUT) and the Kenya Union of Post-Primary Education Teachers (KUPPET) have both condemned the list, claiming it did not account for disparities in teacher populations across the country. The unions argue that teachers from densely populated regions were unfairly disadvantaged.

    In defence of the promotions, TSC CEO Nancy Macharia explained that the commission followed the guidelines set out in Article 56 of the Constitution.

    She insisted that the promotions adhered to the necessary procedures and criteria. However, despite her defence, the committee was unsatisfied and has demanded that the commission provide the requested documents for further scrutiny.

    The controversy surrounding the promotions stems from the TSC’s request for Sh2 billion to fund the same, but the National Treasury allocated only Sh1 billion. This funding shortfall further complicated the promotion process and likely contributed to the perceived inequalities.

    TSC had advertised the vacancies at the end of last year and conducted interviews earlier this year. The published list included 5,690 teachers who applied for promotions in response to advertisements in November and 19,943 others who applied for vacancies in December.

  • Mombasa Man Arrested in Daring Airbnb Scam at Jumeirah Palm Resort

    Mombasa Man Arrested in Daring Airbnb Scam at Jumeirah Palm Resort

    A suspected serial con artist, Samwel Malish, has been arrested for orchestrating a bold scam at the luxurious Jumeirah Palm Resort in Mombasa, leaving an Airbnb host with a Sh370,300 unpaid bill. Malish, along with two accomplices, allegedly booked a three-bedroom property for two weeks, only to vanish without paying, authorities from the Directorate of Criminal Investigations (DCI) confirmed.

    According to the DCI, Malish executed the scheme with calculated precision. He initiated the booking online and sent a fraudulent RTGS message claiming a payment of Sh105,800, which never appeared in the host’s account. When questioned, Malish assured the host that his company would settle the full amount before their departure. However, in a move likened to a magician’s trick, Malish and his accomplices disappeared, leaving the host with no payment and a trail of confusion.

    Investigations revealed Malish’s extensive criminal history as a con artist, with a string of similar scams across Africa and even ties to fraudulent activities in Australia. The DCI noted that Malish and his associates had previously defrauded a beach hotel in Mombasa using the same deceptive tactics.

    Malish is now in custody, awaiting arraignment, as detectives intensify their search for his two accomplices, who remain at large. The arrest marks a significant step in cracking down on fraudulent schemes targeting Kenya’s booming hospitality industry.

    Authorities urge property owners and booking platforms to remain vigilant and verify payments to prevent falling victim to such scams. The DCI continues to investigate Malish’s broader network and past crimes, with hopes of bringing his accomplices to justice.

  • ‪NCBA Bank Ordered to Pay Sh250,000 For Privacy Breach‬

    ‪NCBA Bank Ordered to Pay Sh250,000 For Privacy Breach‬

    The Office of the Data Protection Commissioner (ODPC) has directed NCBA Bank to pay KSh 250,000 to a customer, Brian Githaiga, over mishandling of his personal data.

    Githaiga lodged a complaint after the bank sent his business transaction details to the wrong email address, which he had asked to be corrected multiple times since 2019.

    While NCBA claimed it used the data provided, Data Commissioner Immaculate Kassait ruled the bank either “intentionally or negligently violated” Githaiga’s right to data erasure by failing to act on correction requests.

    The ODPC noted that both Githaiga and the unintended email recipient notified NCBA, yet the error persisted. Evidence showed sensitive emails were still being sent to the wrong address as late as February 2024.

    The bank has 14 days to delete the incorrect email from its system. The ODPC stressed the customer’s right to data rectification and erasure under the Data Protection Act, 2019.

  • KeRRA Director General Philemon Kandie Faces Scrutiny Over Alleged Misuse of Government Vehicles

    KeRRA Director General Philemon Kandie Faces Scrutiny Over Alleged Misuse of Government Vehicles

    Philemon Kandie, Director General of the Kenya Rural Roads Authority (KeRRA), is under fire following allegations that he has amassed a fleet of government vehicles for personal use, raising questions about accountability and transparency in the management of public resources.

    According to a post on X by user @FGaitho237, Kandie has five Toyota Prados parked at his compound, allegedly assigned to various KeRRA and Kenya National Highways Authority (KeNHA) projects. The vehicles include registration numbers KDB (KeNHA project), KDD 171X (KeRRA project, used by Kandie’s bodyguard, Sang), KCG (KeRRA project), KDH 728H (KeRRA project), and KCQ 178 (KeNHA project). Additionally, three double-cab pickup trucks—one for a KeNHA project and two for KeRRA projects—are reportedly in his possession, along with a Subaru Outback and a Toyota Fortuner tied to a KeRRA project.

    The allegations further claim that Kandie is driven by a KeRRA driver, identified as Chesire, in a government-issued Prado (KCP 534K), while his stepbrother, Solomon Kandie, drives him in another KeRRA Prado (KCP 536K). These claims, if verified, suggest a potential misuse of public assets, as government vehicles are typically designated for official duties related to specific projects.

    The Kenya Rural Roads Authority, tasked with developing, maintaining, and managing rural road networks across Kenya, has been at the center of controversy before. Kandie, who has served as KeRRA’s Director General, faced accusations in 2021 of abuse of office, unprocedural staff transfers, and favoritism in tender awards (https://kenyainsights.com/kerra-exposing-procurement-wars-of-corrupt-kandie/)[](https://cnyakundi.com/dg-kandie-benefits-in-kerra-procurement-wrangles/)

    In 2023, the Court of Appeal declined to suspend Kandie’s removal from his position after a labor court ruled his appointment process was marred by illegalities. Despite this, Kandie has remained in his role, overseeing significant projects such as the Sh537 million Mwachande Bridge in Kwale County, which aims to enhance connectivity and economic activity in the region.

    The Kenya National Highways Authority, responsible for managing Class S, A, and B roads, has also been linked to Kandie through the alleged use of its project vehicles. KeNHA, under Director General Kung’u Ndung’u, is grappling with its own challenges, including a Sh35 billion debt to landowners for compulsory land acquisitions.

    The claims have reignited debates about the accountability of public officials and the need for stricter oversight of government resources.

    The Ethics and Anti-Corruption Commission (EACC) and the Asset Recovery Agency have previously investigated KeRRA officials, including a 2021 case involving deputy procurement manager Margaret Wanja Muthui, who was accused of acquiring properties worth Sh374 million through alleged kickbacks. Whether these latest claims will prompt a formal investigation into Kandie’s conduct remains to be seen.

    As Kenya continues to invest heavily in infrastructure, with KeRRA and KeNHA overseeing billions of shillings in road projects, the allegations against Kandie underscore the importance of transparency in public office. The government has yet to comment on the matter, and further developments are expected as the public demands answers.

    For now, the spotlight remains on Philemon Kandie, whose leadership at KeRRA is once again under scrutiny. The public awaits official confirmation of the claims and any subsequent action to address the alleged misuse of government vehicles.

  • Investor Alert: CMA Warns of Rising Investment Scams in Kenya

    Investor Alert: CMA Warns of Rising Investment Scams in Kenya

    The Capital Markets Authority (CMA) has issued a stern warning to the public about a surge in investment scams targeting Kenyan investors. The regulatory body is urging individuals to exercise caution and verify the legitimacy of investment opportunities to avoid significant financial losses.

    In a recent statement released by the CMA, the authority highlighted key red flags to help investors identify fraudulent schemes. The advisory comes amid growing concerns over the increasing sophistication of scammers who prey on unsuspecting individuals seeking high returns.

    Key Indicators of Investment Scams

    The CMA outlined four major warning signs that investors should watch out for:

    1. Unrealistically High Returns: Scammers often lure victims with promises of exorbitant monthly returns, typically ranging from 5% to 30%, which far exceed market norms. Such guarantees are a telltale sign of fraud.

    2. Guaranteed, Risk-Free Returns: Fraudsters frequently claim their investments carry no risk or fail to disclose the true risks involved, misleading investors into a false sense of security.

    3. Unknown Locations and Contacts: Legitimate entities provide verifiable physical addresses and responsive contact details. Scammers, however, often lack a traceable presence, making it difficult for investors and regulators to track them.

    4. Heavy Use of Social Media: Scammers exploit platforms like Telegram, WhatsApp, Facebook, Instagram, and X (formerly Twitter) to recruit investors. These platforms are often used to create a false sense of credibility and urgency.

    CMA’s Call to Action

    The CMA emphasized the importance of due diligence, urging investors to verify the legitimacy of any entity before committing funds. The authority provided a direct link for investors to check approvals: https://www.cma.or.ke/index.php/list-of-licensees. “We urge investors to exercise caution and verify the legitimacy of investment opportunities to avoid financial losses,” the CMA stated.

    A Growing Threat

    Investment scams have become a global concern, with Kenya being no exception. The use of digital platforms has made it easier for fraudsters to reach a wider audience, often using persuasive tactics to exploit financial inexperience. The CMA’s alert underscores the need for increased financial literacy and regulatory oversight to protect investors.

    As the capital markets continue to grow in Kenya, the CMA remains committed to promoting integrity and safeguarding the public from fraudulent schemes. Investors are encouraged to report suspicious activities to the CMA and rely only on licensed entities for their investment needs.

  • Victoria Bank Sued For Sh2B For Wrongful Prosecution

    Victoria Bank Sued For Sh2B For Wrongful Prosecution

    In today’s court news, the directors of Nyama mama have moved to court seeking for damages of over Kes 2 B from Victoria bank for wrongful termination.

    Ninaa Shanghavi and her husband Jayesh Shanghavi, have filed an application at the Milimani High Court seeking compensation of Sh2 billion for what they term as wrongful prosecution.

    The couple further want the court requesting the court to issue orders barring any further criminal charges related to their financial dealings with Victoria Commercial Bank Limited.

    “An order that the respondents jointly and severally do pay the petitioners general aggravated and exemplary damages for the infringement of the constitutional rights and for emotional distress , financial losses and the disruption of their business and livelihoods in the sum of 2 billion shillings.,” reads the papers

    They argue that the escalation of what was essentially a civil matter into criminal proceedings was unwarranted, claiming there was no credible evidence to support allegations of criminal wrongdoing.

    “The respondents’ actions amounted to malicious prosecution and constituted a gross violation of fundamental rights and freedoms,” the court documents state.

    In mid-2024, a Nairobi court withdrew a Sh520 million fraud case against the two directors. Jayesh Shanghavi had initially been charged with obtaining a Sh520 million loan using allegedly fraudulent security.
    However, the Director of Public Prosecutions (DPP) later applied to withdraw the charges, arguing the matter would be better addressed through civil proceedings.

    Lawyers Danstan Omari and Martina Swiga say that their clients ordeal caused them immense frustration and negatively impacted their personal and business affairs.

    They are now seeking a court order directing the respondents to cease and desist from any further interference in their business operations, private lives, or legal entitlements.

    “The company faced significant financial strain and challenges as a result of the COVID-19 pandemic, economic hardships, and other constraints that severely disrupted business operations. Despite these challenges, the directors remained committed to fulfilling its financial obligations with Victoria Commercial Bank,” they argue.

  • Hormuud Telecom Clashes with Somali Government Over Starlink License in Bitter Dispute

    Hormuud Telecom Clashes with Somali Government Over Starlink License in Bitter Dispute

    A brewing conflict between Somalia’s telecom giant Hormuud and the Somali federal government has erupted into a public feud, with Hormuud accusing the administration of President Hassan Sheikh Mohamud of undermining a homegrown business by granting an operational license to Elon Musk’s Starlink without adequate consultation. Industry insiders reveal that the dispute could have far-reaching implications for Somalia’s telecom sector, its economy, and the political landscape.

    Hormuud, Somalia’s largest telecom provider and a near-monopoly in the industry, operates critical infrastructure, including a submarine cable system in the Horn of Africa. The company, which employs thousands and is the country’s biggest private employer, is reportedly incensed by the government’s decision to greenlight Starlink’s satellite internet service. Sources close to the matter claim Hormuud views the move as a betrayal, with one insider stating, “The HSM government is stabbing an indigenous Somali-owned business in the back.”

    The controversy centers on the National Communications Authority’s (NCA) announcement on April 13, 2025, granting Starlink a license to operate in Somalia, a move hailed by government officials as a step toward bridging the digital divide. At a ceremony in Mogadishu, NCA Director General Mustafa Yasin Sheik emphasized the potential for Starlink’s low-Earth orbit satellite network to deliver high-speed internet to remote and underserved regions. “Starlink’s entry into Somalia represents a significant milestone in our efforts to bridge the digital divide in our country,” Yasin said. Minister of Communications and Technology Mohamed Mo’allim echoed this sentiment, affirming the government’s commitment to “affordable and accessible internet services for all Somalis.”

    However, Hormuud, led by influential tycoon Sheikh Ali Ahmed Nur Jim’ale, who now resides in Djibouti, alleges that the government bypassed proper consultation with the telecom sector. The company, which operates in both government- and Al-Shabaab-controlled territories and contributes significant regulatory fees to state coffers, sees Starlink’s entry as a direct threat to its dominance. “Somalia’s President Hassan Sheikh has signed the demise of his political career. You cannot break Somalia’s most powerful telecom monopoly and not pay a hefty price,” a source close to Hormuud warned.

    Hormuud’s near-monopoly has long been a point of contention. Critics argue that its dominance stifles competition, resulting in high data costs and limited coverage, particularly in rural areas where only 27.6% of Somalis have internet access as of 2024. Detractors, including industry analysts, have called for liberalization of the telecom sector, asserting that increased competition could lead to lower prices, better speeds, and wider coverage. “Hormuud’s monopoly has many detractors who say it is time for Somalia to liberalize the telecom sector, and in the end, the ordinary consumer would benefit,” noted a prominent Somali analyst on X.

    Starlink’s arrival is seen as a potential game-changer for Somalia, where poor terrestrial infrastructure has left many communities disconnected despite the presence of undersea cables like EASSy and DARE1. With its satellite-based service, Starlink promises to deliver low-latency, high-speed internet to even the most remote regions, potentially reshaping access to education, healthcare, and commerce. However, concerns remain about affordability, as Starlink’s pricing may be prohibitive for many Somalis without government subsidies, a model the company has employed in other regions but has yet to confirm for Somalia.

    The dispute has also taken on a darker tone, with some voices on X alleging Hormuud’s ties to Al-Shabaab, claiming the company’s operations in militant-controlled areas and its control over internet, remittance, and media sectors make it a security risk. One post suggested that Starlink’s entry could serve as a “security strategy” to counter Hormuud’s influence and track terrorist activities, though these claims remain unverified. Hormuud has faced similar accusations in the past, with UN reports linking it to Al-Shabaab extortion schemes, but the company has consistently denied such allegations.

    As the standoff unfolds, the Somali government faces a delicate balancing act: fostering competition and digital inclusion while navigating the economic and political clout of Hormuud, a company deeply embedded in the nation’s fabric. For now, the entry of Starlink signals a new chapter in Somalia’s telecom landscape, but whether it will deliver on its promise of connectivity or ignite further conflict remains to be seen.

  • How Kahawa West Man Hacked And Stole Sh49M From Jambopay

    How Kahawa West Man Hacked And Stole Sh49M From Jambopay

    The Directorate of Criminal Investigations (DCI), working with the Office of the Director of Public Prosecutions (ODPP), has secured a court order allowing them to detain an IT expert for seven days as investigations continue into a cyber fraud case involving the theft of Sh49 million.

    Joseph Momanyi, the suspect at the center of the probe, is being held at Muthaiga Police Station by the DCI’s Financial Investigations Unit.

    He is under investigation for Computer Fraud under Section 26 of the Computer Misuse and Cybercrime Act (2018), as well as Money Laundering under Section 3 of the Proceeds of Crime and Anti-Money Laundering Act.

    The inquiry—registered as ECCU 65/2024—was launched after Web Tribe Limited, a Kenya-based digital transactions platform, reported the unauthorized transfer of funds from its system.

    The breach allegedly occurred between July 19 and July 23, 2024, targeting the company’s JamboPay client portal. During that period, cyber attackers illegally accessed the system and siphoned off approximately Sh49,095,968.

    According to investigators, the stolen funds were funneled into multiple channels, including mobile wallets, bank accounts, and till numbers.

    Momanyi was apprehended on the night of April 12 at his home in Kahawa West. A search of the premises uncovered numerous SIM cards registered under different names, multiple mobile phones, and a laptop—items believed to have been used in the operation.

    The DCI believes Momanyi is part of a broader criminal network involved in high-level cyber fraud.

    Encouragingly, the suspect has reportedly expressed a willingness to cooperate with authorities in identifying other members of the syndicate

  • Turkish Firm Summa Wins Sh31.6B Bomas Renovation Tender

    Turkish Firm Summa Wins Sh31.6B Bomas Renovation Tender

    Turkish construction firm Summa Turizm Yatirimciligi Anonim Sirketi has finally received the green light to proceed with the construction of the Bomas International Convention Complex in Nairobi, after months of legal wrangling and uncertainty.

    This follows the Court of Appeal’s dismissal on Friday of the Ministry of Defence’s last-ditch attempt to cancel the Sh31.6 billion tender, ruling that the appeal was filed too late to be legally admissible.

    “The learned Judge was right that the appellants—the Ministry of Defence—acted too late, and the decision to strike it out is sound in law and cannot be faulted,” stated the three-judge bench comprising Justices Gatembu Kairu, Fred Ochieng, and Aggrey Muchelule.

    The Bomas International Convention Complex, approved by Cabinet on August 8, 2023, is envisioned as a world-class facility.

    The proposed design includes a high-capacity conference centre, a presidential pavilion, and at least five luxury hotels to support large-scale international events, summits, and state functions. The goal is to elevate Nairobi’s position as a premier destination for international conferences.

    Summa Turizm was awarded the tender through Direct Tender No. DHQINFRAS/004/23-24 in November 2023. Months later, despite notifying the Ministry that it had secured up to 80 percent of the required project financing, the State moved to terminate the tender on October 16, 2024—329 days after the award and without ever signing a formal contract.

    The Public Procurement Administrative Review Board (PPARB) stepped in on December 23, 2024, ordering the Ministry to conclude the tender within 90 days.

    The Board said the Ministry had failed to prove lack of funds or legitimate justification for the cancellation, noting instead that “the general conduct of the ministry spoke of a deliberate attempt to frustrate the conclusion of the tender.”

    The Ministry’s attempt to reverse the Board’s decision through the High Court was dismissed by Justice John Chigiti, who ruled the application was filed eight days late, beyond the 14-day legal window.

    In its final argument, the Ministry claimed the delay was caused by the Christmas court recess. However, the Court of Appeal rejected this, stressing that timelines under procurement law are “cast in stone” to ensure integrity and efficiency in public projects.

    “Order 50 Rule 4 is subordinate legislation and cannot override express statutory provisions,” the court held.

    The court’s decision ends the protracted dispute, allowing construction to begin and strengthening Kenya’s ambitions to become a leading destination for international conferences and summits.