Category: Business

Safaricom Officer Admits Releasing Private Data Without Court Order, Exposing State Surveillance Links

September 9, 2025 — Nairobi, Kenya

A Safaricom officer’s courtroom admission that the telecom giant released sensitive personal data to police without a court order has reignited concerns over the company’s role in Kenya’s surveillance apparatus and alleged connection to enforced disappearances.

The revelation came during the trial of David Oaga Mokaya, a 24-year-old university student charged with publishing false information after posting an AI-generated image of President William Ruto’s coffin on social media platform X.

During cross-examination at Milimani Law Courts on September 8, Safaricom employee Daniel Ndeti confirmed under oath that his company provided call data records, triangulation data, and location tracking information for Mokaya’s phone based solely on a police request letter—without obtaining a court warrant.

“The order was not there,” Ndeti testified when pressed by defense lawyer Danstan Omari about whether proper legal authorization had been secured. The admission directly contradicts a 2018 High Court ruling in *Okiya Omtatah vs. Communications Authority*, which requires court orders for such data releases to protect constitutional privacy rights.

The November 14, 2024 police letter requested comprehensive data including IMEI history, subscriber details, call records from September 15 to November 13, 2024, and geographical locations—information that led to Mokaya’s arrest on November 13.

When Omari challenged Ndeti on the legality of the action, asking “Are you aware that without an existing court order, you’ve violated the accused person’s rights and broken the law?” the Safaricom officer responded defensively: “I’ve not broken any laws because there was a formal request.” Viral video footage captures Ndeti appearing visibly uncomfortable during the exchange, at one point holding his head in his hands.

Mokaya’s prosecution stems from a social media post that allegedly caused public panic, though a DCI data analyst later testified there was no direct evidence linking him to the image, relying instead on IP addresses and device data.

Defense lawyers challenged the prosecution to prove any actual public distress, with a DCI officer admitting he could not confirm that panic had occurred. The case highlights how digital evidence—often obtained through legally questionable means—is being weaponized against critics of the Ruto administration.

This admission is not an isolated incident but part of a documented pattern of allegations against Safaricom, Kenya’s dominant telecom provider with over 40 million subscribers and a 35% government stake.

A months-long investigation by Nation Media Group revealed that Safaricom’s systems, modified in 2012 by British firm Neural Technologies, include backdoor access allowing security agencies “virtually unfettered access” to real-time call data and location tracking without warrants.

Police reportedly use triangulation technology to pinpoint locations via mobile phone towers and employ predictive tools to map movements and associations, enabling what sources described as “kill or capture” operations. The surveillance capabilities have allegedly been used in several high-profile disappearances that raise serious questions about state accountability.

Trevor Ndwiga Nyaga’s 2021 disappearance illustrates these concerns. Call data records submitted by Safaricom showed geographical inconsistencies, with one set placing the terrorism suspect near the Somali border and another in Nairobi—suggesting potential data manipulation to obscure foul play. Nyaga was later found dead. Similarly troubling is the case of South Sudanese activists Samuel Dong Luk and Idri Aggrey, who were abducted in Nairobi in 2017. Their call records contained what a UN Panel of Experts deemed fabricated entries, with the panel concluding their subsequent executions were “highly probable.”

The surveillance system’s role became particularly controversial during the 2024 Gen Z protests against government economic policies, which resulted in over 60 deaths and dozens of abductions. Opposition leaders accused Safaricom of aiding police operations by sharing data, prompting public calls for boycotts. One Recce squad officer described how Safaricom’s system can signal when operatives are within 10 meters of targets, facilitating nighttime raids.

Human rights organizations have documented over 80 abductions since mid-2024, many targeting vocal government critics including cartoonist Gideon Kibet and activist Billy Mwangi, both of whom had shared satirical images of President Ruto. The Kenya Human Rights Commission accused Safaricom in an open letter of systematically failing to provide vital data in state crime investigations while readily complying with police requests.

International human rights groups have taken notice. Access Now has urged Vodacom—Safaricom’s parent company—to investigate, citing risks of torture and enforced disappearances. “This erodes trust in digital infrastructure and enables authoritarian control,” said Natalia Krapiva of Access Now.

The courtroom testimony sparked fierce backlash on social media platform X, with users calling for Safaricom boycotts and legal action. Many expressed plans to abandon their Safaricom services, while others suggested the case could lead to successful lawsuits against the company.

Safaricom has consistently denied wrongdoing. CEO Peter Ndegwa stated in May 2025: “Safaricom was not behind GenZ abductions,” insisting that data is shared only with proper court orders. Following the Nation Media Group exposé, the company reiterated that it takes “data protection seriously,” though it faced additional criticism from Reporters Without Borders after allegedly attempting to intimidate the news outlet.

Government officials have largely dismissed the abduction allegations, with Majority Leader Kimani Ichungwah claiming some incidents were “staged” while denying state involvement. This official response has done little to quell growing public concern about the intersection of corporate cooperation and state surveillance.

With Safaricom maintaining a virtual monopoly on Kenya’s telecommunications market and significant government ownership, calls are growing for regulatory reforms, including stricter oversight under the Data Protection Act.

As Mokaya’s trial continues, this admission could catalyze class-action lawsuits and increased international scrutiny, potentially forcing a broader reckoning over privacy rights and state surveillance in Kenya.

Diplomatic tensions escalate as Tehran demands international intervention in multi-billion-dollar fraud case involving Kenyan tea exporter

Nearly eight months after Iran suspended imports of Kenyan tea following a massive quality fraud scandal, diplomatic efforts to restore the lucrative trade relationship face new complications as Tehran pushes for Interpol involvement in investigating the case that has already resulted in prison sentences for Iranian officials and the collapse of a $3.7 billion corruption scheme.

The crisis stems from the activities of Cup of Joe Limited, a Mombasa-based tea export company owned by businessman Joseph Njuguna Wainaina, a close associate of impeached former Deputy President Rigathi Gachagua.

The company served as the crucial intermediary in a sophisticated fraud operation that saw Iranian firm Debsh Tea Co import low-grade Kenyan tea at $2 per kilogram, only to fraudulently relabel and sell it as premium Indian Darjeeling tea for up to $14 per kilogram.

The Billion-Dollar Scandal Unfolds

Iranian court documents reveal the staggering scope of the corruption. Between 2019 and 2022, Debsh Tea received $3.37 billion in subsidized foreign currency ostensibly to import tea and machinery.

However, the company diverted $1.4 billion to the free market for profit while engaging in elaborate fraud schemes that eventually ensnared government officials and triggered a diplomatic crisis.

The scheme worked through Cup of Joe’s strategic positioning as a premium tea exporter, complete with ISO 22000, HACCP, and GMP certifications while marketing halal and organic certified products.

The company operated through Dubai warehouses via Chai Trading, a subsidiary of the Kenya Tea Development Agency (KTDA), creating a complex web that masked the fraudulent activities.

What made the operation particularly audacious was Cup of Joe’s ability to facilitate payments not only in U.S. dollars but also in UAE dirhams—a capability that surprised other exporters and should have raised red flags among regulators.

This multi-currency operation gave the company significant advantages over competitors while enabling the massive price manipulation that characterized the fraud.

Swift Iranian Justice, Slow Kenyan Response

Iranian authorities moved decisively once the scandal emerged. Debsh Tea CEO Akbar Rahimi-Darabad received a 66-year prison sentence, effectively 25 years under concurrent sentencing rules, for disrupting Iran’s economy, smuggling foreign currency, and bribery.

Two former Iranian ministers, Javad Sadatinejad and Reza Fatemi Amin, were sentenced to one and two years respectively for their roles in the scheme that unfolded under the late President Ebrahim Raisi.

However, Iranian officials have expressed mounting frustration with Kenya’s relatively sluggish response to demands for action against local intermediaries allegedly complicit in the fraud.

This dissatisfaction has now evolved into calls for Interpol involvement, raising the stakes considerably and potentially complicating Kenya’s efforts to restore trade relations.

In August, Agriculture Cabinet Secretary Mutahi Kagwe announced that a bilateral commission had agreed that Kenyan tea exports to Iran would resume within 60 days.

However, this timeline appears increasingly unrealistic as Tehran escalates its demands for international oversight of the investigation.

Continuing Concerns

Agriculture Principal Secretary Kipronoh Ronoh issued a directive to the Tea Board of Kenya canceling all trading licenses held by Cup of Joe Limited, emphasizing that “we have taken this serious direction to bring order to the tea sector” as part of broader industry reforms aimed at ensuring accountability and stability.

Yet industry sources reveal troubling gaps in enforcement.

Despite the Tea Board of Kenya announcing the suspension of Cup of Joe’s license following the scandal, the company was deregistered and set to face prosecution.

However, concerns persist that the firm may continue operating through intermediaries and alternative sourcing arrangements, potentially undermining efforts to demonstrate Kenya’s commitment to trade integrity.

The regulatory response has exposed deeper issues within Kenya’s tea export oversight system.

Critics have accused the Kenya Tea Development Agency and government officials of colluding to manipulate the Mombasa tea auction by setting artificially high reserve prices, eliminating competition in ways that aligned with Gachagua’s political promises of higher revenues for tea farmers.

Economic Stakes and Diplomatic Fallout

The scandal threatens Kenya’s position as the world’s leading black tea exporter at a particularly vulnerable time.

Kenya’s exports to Iran were estimated at Sh5.98 billion in 2023, making Iran a crucial market when other traditional buyers face constraints.

The loss of Sudan as a major buyer, combined with reduced imports from Egypt and Pakistan due to foreign currency shortages, has left Kenya’s tea sector exposed to the Iranian market suspension.

Kenya’s tea industry contributes nearly a quarter of the country’s foreign exchange earnings, making the Iranian market suspension particularly damaging to the broader economy.

With diplomatic tensions escalating beyond commercial considerations, the scandal has created ripple effects that extend far beyond the tea sector.

The timing could not be worse for Kenya’s agricultural export strategy.

President William Ruto’s administration established a task force in late 2023 to address broader issues of unsold tea stocks, but the Debsh Tea scandal has overshadowed these efforts and created new challenges for market diversification.

Political Connections Under Scrutiny

Cup of Joe’s central role in the scandal has thrust Wainaina’s extensive business connections under intense scrutiny.

Beyond tea exports, Wainaina operates in multiple sectors, including supplying bitumen from Iran to the South African market—dealings that established his Iranian connections years before the tea fraud emerged.

Industry insiders reveal that the relationship between the Kenyan government and Debsh Tea Co crystallized in late 2022 when the Kenya Kwanza administration took power, with Gachagua championing higher tea prices as part of his political strategy to expand his base in tea-growing regions of central Kenya.

The connection between political promises and the fraudulent scheme highlights the risks of allowing export intermediaries to operate without adequate oversight, particularly when political considerations influence market dynamics.

Way Forward

As Kenya seeks to rebuild trust with Iranian buyers and restore market access, the Cup of Joe scandal serves as a stark reminder of the vulnerabilities in the country’s export oversight systems.

The government’s cancellation of the company’s licenses, while potentially too late to prevent immediate market loss, represents an attempt to demonstrate commitment to trade integrity.

However, Iran’s push for Interpol involvement suggests that Tehran views Kenya’s response as insufficient.

This international dimension adds complexity to what began as a bilateral trade dispute and could establish precedents for how future export fraud cases are handled.

The scandal’s resolution will likely influence Kenya’s broader tea export strategy, potentially leading to enhanced monitoring of export intermediaries and stricter compliance requirements for companies dealing with high-value international markets.

For tea farmers and the broader industry, the Cup of Joe case underscores the vulnerability of Kenya’s export-dependent agricultural sector to corporate malfeasance enabled by inadequate regulatory oversight.

As both countries navigate the diplomatic and commercial fallout, the ultimate test will be whether Kenya can implement sufficient reforms to satisfy Iranian demands for accountability while preserving what remains of this crucial trade relationship.

The involvement of Interpol, if it materializes, would mark a significant escalation that could influence how both countries approach future trade partnerships and regulatory cooperation.

NAIROBI – A Safaricom security officer has told a Nairobi court that the telecommunications giant provided call data records and subscriber information for a university student without obtaining a court order, raising fresh questions about data privacy violations in Kenya’s most closely watched cybercrime case.

Daniel Khamisi, an investigator from Safaricom’s security department, testified at the Milimani Law Courts that his company received a request from the Directorate of Criminal Investigations on November 14, 2024, seeking call data records for four mobile numbers as part of the investigation into David Oaga Mokaya, the Moi University student accused of posting a fabricated social media message about President William Ruto’s death.

The testimony has opened a new front in the controversial case that has already seen prosecution witnesses struggle to establish concrete links between the accused and the viral X post that depicted what appeared to be a presidential funeral procession.

Khamisi revealed that Safaricom complied with the DCI’s request and submitted a comprehensive report on November 28, 2024, covering communications between October 15 and November 13, 2024.

The data included details of two specific transactions on November 13 – an incoming SMS at 4:24 p.m. and a phone call lasting 270 seconds.

Both activities were traced to the Eldoret Annex area, with the device identified by IMEI number 359995534449550.

However, what emerged as particularly concerning was the apparent absence of judicial oversight in the data request process.

Chief Inspector Bosco Kisau, the lead DCI officer in the case, had earlier admitted under cross-examination that a detention warrant for Mokaya’s electronic devices was only obtained after his arrest took place, suggesting a pattern of procedural irregularities in the investigation.

The revelation comes at a time when Safaricom faces mounting criticism from human rights groups, with the Kenya Human Rights Commission alleging that the company “allowed security agencies routine access to consumer data (including but not limited to CDRs and other location data) without a court order, assisting in the tracking and capturing suspects.”

Defense lawyers Danstan Omari and Shadrach Wambui have seized on these procedural lapses to challenge the prosecution’s case.

During Thursday’s hearing, Omari pressed Kisau on whether the contested post actually featured President Ruto’s image, to which the officer acknowledged it did not.

Instead, the post showed a casket covered in the Kenyan flag with an accompanying caption mentioning the President’s name.

The defense team’s strategy appears focused on dismantling the digital evidence chain, particularly challenging whether the social media account in question can be definitively linked to their client.

Ezra Koech, a police officer seconded to the Communications Authority of Kenya, admitted during cross-examination that his seven-page analysis report did not establish any connection between the X account @bosskabi landlord and Mokaya, nor did it authenticate the origin of the contested images.

Safaricom has previously maintained that it “respects customers’ privacy and strictly adheres to Kenya’s data protection laws” and only shares “customer data when required by a court order.”

However, the testimony suggests a more complex reality where requests from law enforcement agencies may be processed without the judicial scrutiny typically required for such invasive investigative measures.

The case has broader implications for digital rights in Kenya, where concerns about surveillance overreach have intensified.

Civil society groups have raised concerns about a “data management system embedded within Safaricom’s internal systems by a British software company, Neural Technologies” that allegedly “allows real-time access to call data, ostensibly for tracking suspects.”

For Mokaya, who has been free on bond since his November 2024 arrest, the case represents a significant disruption to his academic pursuits.

The fourth-year student has previously told the court that the ongoing proceedings are affecting his studies, leading to several adjournments to accommodate his academic commitments.

The prosecution alleges that Mokaya violated the Computer Misuse and Cybercrimes Act by publishing false information intended to cause public alarm.

However, Inspector Kisau’s admission that he could not confirm whether any member of the public was actually distressed by the post has further weakened the state’s case.

As the trial continues, the case is being closely watched as a test of Kenya’s cybercrime laws and their application to social media content.

The defense has indicated it may call President Ruto himself as a witness, arguing that as the alleged victim, his testimony is crucial to establishing whether the post caused the harm claimed by prosecutors.

The proceedings resume with the cross-examination of remaining prosecution witnesses, as the court grapples with questions about digital evidence authenticity, data privacy rights, and the boundaries of free expression in Kenya’s digital age.

Kenya has entered into a groundbreaking labor mobility agreement with Nebraska State that will open doors for Kenyan truck drivers to work legally in the United States, officials announced this week during a joint press conference in Nairobi.

The deal, signed on Tuesday between Principal Secretary for Diaspora Affairs Roseline Njogu and Nebraska Secretary of State Robert Evnen, specifically targets licensed commercial drivers amid a significant shortage of truck drivers across America. Evnen confirmed the high demand for skilled drivers in his state and emphasized that the agreement provides an organized, legal pathway for Kenyans seeking employment opportunities in the US.

“We began with labor mobility with commercial driver’s license; these are skilled truck driving positions. We have a need for that in the United States, we have the need for that in Nebraska, and we have training available in Nebraska,” Evnen explained during the announcement at the Kenya-Nebraska Beef Trade and Investment Conference.

The timing of this agreement is particularly significant given President Donald Trump’s administration’s heightened restrictions on illegal immigration to the US. The Nebraska deal ensures that Kenyan drivers will follow proper visa procedures and legal channels to enter and work in America, with participants required to meet all visa conditions and return to Kenya upon contract completion.

Beyond trucking, both officials hinted at expanding opportunities in other sectors. Kenya is considering extending its Mkulima Majuu agricultural program to Nebraska, which could create jobs for Kenyan youth with farming expertise, including agronomists, agricultural engineers, and farm managers. Evnen also suggested potential partnerships in healthcare and other professional fields.

This Nebraska partnership represents Kenya’s broader strategy to address youth unemployment through international labor mobility agreements. Principal Secretary Njogu recently led a delegation to Germany exploring over 200,000 job vacancies, demonstrating the government’s commitment to creating overseas employment opportunities for its citizens.

The agreement establishes a structured framework with regular committee meetings to identify needs and streamline processes, ensuring sustainable and organized labor migration that benefits both countries while providing Kenyans with legitimate pathways to pursue the American dream.​​​​​​​​​​​​​​​​

VLADIVOSTOK – Kenya is laying the groundwork for potential direct flights to Russia, a move that could deepen ties between the two nations, but only if tourism demand surges, according to Kenya’s Ambassador to Russia, Peter Mutuku Mathuki.

Speaking to Russia’s TASS on the sidelines of the Eastern Economic Forum (EEF) in Vladivostok, Mathuki revealed that discussions with Kenya’s aviation sector are already underway, signaling a strategic push to capitalize on Russia’s growing interest in exotic travel destinations.

The ambassador emphasized that the viability of direct flights hinges on a robust increase in tourist traffic.

“To develop such an active transport connection, we need to constantly increase the flow of tourists who will sustain these new routes,” Matuki said.

He highlighted Kenya’s safari tourism as a key draw, noting its appeal to Russian travelers eager for unique experiences.

“Tourists from Russia are intrigued by exotic vacations. In Kenya, you can witness the ‘Big Five’—elephant, buffalo, leopard, lion, and rhinoceros—and be captivated by the stunning beauty of our nature,” he added.

The proposed flights could mark a significant step in strengthening Kenya-Russia relations, which have historically been limited by geographical and logistical barriers.

Kenya’s tourism sector, a cornerstone of its economy, stands to benefit from tapping into Russia’s vast market.

In 2024, Kenya welcomed over 2 million tourists globally, contributing roughly 10% to its GDP, but Russian visitors remain a small fraction of this figure.

Direct flights could change that, making Kenya’s savannas and wildlife more accessible to Russian adventurers.

However, challenges remain.

Establishing direct routes requires substantial investment in aviation infrastructure and bilateral agreements, not to mention navigating Russia’s complex geopolitical landscape.

Mathuki’s comments suggest Kenya is approaching the idea cautiously, prioritizing a sustainable increase in tourist numbers before committing to new routes.

The ambassador’s focus on safari tourism also underscores Kenya’s intent to market its natural heritage as a unique selling point, potentially setting it apart from other African destinations vying for Russian travelers.

The EEF, where Matuki spoke, is a platform for fostering economic ties, with over 4,500 participants from 70 countries this year.

Held from September 3-6 under the theme “Far East: Cooperation for Peace and Prosperity,” the forum provided a fitting backdrop for Kenya to pitch its tourism potential and explore new partnerships.

As discussions progress, the prospect of direct flights could redefine Kenya-Russia ties, bringing Nairobi’s vibrant wilderness closer to Moscow’s doorstep—but only if the demand is there.

Nairobi, September 7, 2025 — A recent ruling by the Tax Appeals Tribunal has sent a stark warning to Kenyan taxpayers: without clear documentation, all deposits into your bank account could be deemed taxable income by the Kenya Revenue Authority (KRA).

The decision, stemming from the case of Kirin Pipes Limited vs. KRA Commissioner (E1116/2024), raises questions about whether mobile money platforms like M-Pesa could face similar scrutiny.

In the case, KRA slapped Kirin Pipes Limited with a tax bill of Kes 34.3 million for income tax and Kes 22.7 million for VAT, covering 2019 to 2022, after classifying all deposits into the company’s bank accounts as taxable income.

Kirin Pipes argued that Kes 29.4 million were shareholder capital injections, Kes 31.7 million was an interest-free loan from Nanchang Municipal Engineering Development, and Kes 24.6 million were shareholder funds for operations, none of which should be taxable.

However, the Tribunal upheld KRA’s assessment, citing the company’s failure to provide certified bank statements, shareholder resolutions, or verifiable loan agreements.

The Tribunal emphasized that taxpayers bear the burden of proving deposits are non-taxable. Kirin Pipes’ CR12 form showed only an initial Kes 10 million capital, with no evidence of updated shareholding.

The alleged loan lacked clear terms or repayment proof, rendering it unverifiable. “Without sufficient, corroborative evidence, KRA is justified in treating all deposits as income,” the Tribunal ruled.

This precedent underscores the importance of meticulous record-keeping for businesses and individuals alike.

Tax experts warn that KRA’s aggressive stance could extend beyond traditional bank accounts.

“M-Pesa transactions, especially for businesses, are increasingly visible to KRA through integration with banking systems and digital tax platforms,” said Jane Mwangi, a Nairobi-based tax consultant.

“If you can’t prove your M-Pesa deposits are loans, gifts, or capital, they could be taxed as income.”

KRA’s access to mobile money data is growing, with Safaricom and other providers required to share transaction details under Kenya’s tax laws.

While individuals may not yet face the same level of scrutiny as businesses, the Kirin Pipes ruling signals KRA’s readiness to challenge undocumented deposits across platforms.

“M-Pesa is not immune,” Mwangi added.

“Businesses using mobile money for transactions should maintain clear records to avoid surprises.”

Taxpayers are urged to keep certified bank statements, loan agreements, and shareholder records to substantiate the source of funds. As KRA leverages technology to tighten compliance, the question looms: will your M-Pesa wallet be next?

NAIROBI, Kenya, Sept 7 – The government has revoked the licenses of four tour operators in a sweeping crackdown targeting non-compliant players in Kenya’s multibillion-shilling tourism industry.

The Tourism Regulatory Authority (TRA) said the enforcement drive, spearheaded by a multi-agency team, began in the Maasai Mara and has since extended to Amboseli, Tsavo, and the Coast.

TRA Director General Norbert Tallam identified the affected firms as Kenmara Tour Operators, Thinkscenes Services Ltd, Twinkle Star Tours and Safaris, and Dosasha Tour and Safaris. He said the companies will remain barred from business until they meet compliance requirements.

“This is a big stride forward. We are here to ensure that Kenya’s tourism sector is properly regulated,” Tallam said during the crackdown in Amboseli National Park. “Rogue operators and unlicensed drivers must come forward and regularize their businesses, or they will not be allowed to operate.”

He urged tourists to book trips only through licensed firms, stressing that the campaign is meant to create a fair, competitive environment while protecting Kenya’s image as a global destination.

TRA Board Chairman Benjamin Washiali warned other operators flouting regulations that the authority would take swift action. “We mean business,” he said. “Tourism is one of Kenya’s top foreign exchange earners, yet for too long it has suffered because of poor regulation. That is why we are leaving our boardrooms and going to the ground to act decisively.”

Washiali noted that several companies targeted during the operation had already complied, calling it proof that the campaign is working.

Tourism employs hundreds of thousands of Kenyans and generates billions annually, but unlicensed operators, poor service standards, and safety concerns have long undermined competitiveness.

Officials said the ongoing crackdown is not meant to stifle businesses but to enforce professionalism, safety, and sustainability. “This is about fairness, compliance and sustainability,” Tallam said.

The operation is expected to intensify in coming weeks as inspectors move into more tourist circuits to weed out rogue operators.

NAIROBI, Kenya, Sept 6 – Mt. Kenya Tea Factory Limited has been placed under administration, with insolvency practitioners PVR Rao and Swaroop Rao Ponangipalli appointed as joint administrators.

The appointment, effective September 3, 2025, gives the administrators full authority to manage the company’s affairs, assets, and undertakings.

Consequently, the powers of the company’s directors to deal with its assets have ceased.

Parties with claims against the company have until September 30, 2025 to submit them in writing, accompanied by supporting documents, to the joint administrators.

The administrators, acting as agents of the company without personal liability, will oversee the restructuring process.

The Kenya Revenue Authority (KRA) has announced thwarting of a scheme to defraud the government of Sh123 million in taxes through the irregular clearance of imported rice containers in Mombasa.

In a statement released on Friday, the authority confirmed that the scheme involved the clearance of 161 containers of rice at one of the Container Freight Stations (CFS) between August 1 and August 23, 2025.

The tax evasion attempt was uncovered through routine audit checks, which flagged anomalies in the clearance process.

KRA described the discovery as timely, adding that the swift response enabled the Authority to recover the full amount of revenue that was at risk.

“Through routine audit checks, we uncovered and stopped the irregular clearance of 161 rice containers at a Mombasa Container Freight Station. This fraudulent scheme would have cost Kenyans Sh123 million in lost revenue, but we successfully recovered the full amount at risk,” the statement noted.

Following the discovery, KRA launched a comprehensive investigation into the matter and confirmed it is working closely with the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and other law enforcement agencies.

“The Authority is collaborating closely with enforcement agencies to identify and hold accountable all individuals involved in the fraudulent scheme, including staff,” KRA said.

The tax agency reassured the public of its commitment to integrity and accountability, emphasising that anyone found culpable will face the full weight of the law.

The Commissioner of Customs and Border Control reaffirmed that KRA will remain vigilant in protecting the taxman’s revenue.

“The Authority assures the public that anyone found culpable, whether staff members or external parties, will face the full rigour of the law,” the statement concluded.

The Kenya Revenue Authority (KRA), established under the Kenya Revenue Authority Act, Chapter 469, effective July 1, 1995, is mandated to collect revenue on behalf of the Government of Kenya.

Its core functions include assessing, collecting, and accounting for revenue as provided by law, advising on revenue administration and collection matters, and carrying out other revenue-related duties as may be directed by the Minister.

Co-operative Bank of Kenya is urging its over 10 million customers to beware of fake banking apps as cyber fraud surges across the region.

In a vibrant social media post dated September 5, the bank warned, “Wadau, fraudsters are getting clever but so must you!! Usidownload bank apps anywhere – Zii!! Always use trusted stores like Google Play and App Store. Stay safe online! Kaa Chonjo!”

The alert comes amid alarming statistics.

The Central Bank of Kenya reported 353 fraud cases in 2024, up from 173 in 2023, with losses hitting Sh1.59 billion ($11 million)  a 264% jump  largely due to mobile banking scams.

The Communications Authority noted 7.9 billion cyber threat incidents in the first eight months of 2025, double the previous year’s figure.

Across Africa, INTERPOL’s 2025 Cyberthreat Assessment highlights a sharp rise in financial fraud, exacerbated by AI-driven deepfakes.

Experts like Dr. Elena Mwangi warn that scammers use convincing fake apps to steal login credentials and OTPs. Co-op Bank’s recent campaigns also address phone scams and phishing links, aligning with industry efforts like KCB Bank’s OTP fraud alerts.

Customers are advised to download apps only from official stores, verify developer details, and report suspicious activity to the CBK hotline. “Your security is our priority. Kaa Chonjo!” a bank spokesperson told Grok Journal, as Kenya’s digital economy faces growing threats.

A consortium of established flour milling magnates has acquired bankrupt Savannah Cement for Sh3.8 billion, marking the end of a two-year search for buyers and potentially reshaping Kenya’s competitive cement landscape.

The wealthy investors, with deep roots in Kenya’s flour milling industry, successfully concluded the acquisition of the troubled cement manufacturer through a newly registered entity called Savannah Cement 2025 Limited. The deal represents a significant consolidation move that could intensify competition in Kenya’s lucrative cement market, which has attracted increasing interest from billionaire investors seeking to capitalize on the country’s construction boom.

The acquisition was structured through three investment vehicles that hold equal stakes in the new company. Montgate Holdings, fully owned by Hafeez Amin Manji, brings expertise from Mini Bakeries, the company behind the popular Supa Loaf bread brand that has maintained a significant presence in Kenya’s competitive bread market for decades.

SMA Investments represents the interests of Muhammed Salim Taib, Said Salim, and Abubakar Salim Ahmed, who collectively control a substantial milling empire spanning Kitui Flour Millers, Rafiki Millers, and Eldoret Grains Limited. This influential group has demonstrated their diversification strategy through their ownership of Busia Sugar Industries, which recently acquired South Nyanza Sugar Company, expanding their footprint beyond grain processing into sugar manufacturing.

The third partner, Mo Ali Kenya, is controlled by Ali Yishma and Mohammed Islam, who have built their fortune through Mombasa Maize Millers. Established in 1978, this company has become one of Kenya’s leading grain processors, known for producing popular brands such as Ndovu maize meal, Bahari maize meal, and Taifa maize meal that have become household names across the country.

Competition Authority of Kenya Director-General David Kemei confirmed the transaction received unconditional approval on August 25, 2025, emphasizing its potential to preserve employment and ensure continued productivity of the cement manufacturer’s substantial assets. The approval came after authorities determined the acquisition would not substantially prevent or lessen competition in the market.

The successful bid concludes a lengthy receivership process that began when KCB Bank Kenya and Absa Bank placed Savannah Cement under administration in May 2023 due to overwhelming debt obligations totaling over Sh14 billion. The two financial institutions had become increasingly concerned about the company’s ability to service its obligations, with KCB holding the largest exposure at Sh8.89 billion while Absa faced potential losses of Sh5.23 billion.

Peter Kahi, a partner at audit firm PKF Kenya, was appointed as administrator to oversee the complex sale process. The cement manufacturer had attracted over a dozen local and international suitors during the extended bidding period, reflecting the strategic value of its assets and the growing appeal of Kenya’s cement market among serious investors.

Savannah Cement’s financial troubles had been mounting for several years before the administration. The company reported a devastating net loss of Sh2.5 billion in 2022, while its total debt burden had ballooned to approximately Sh18 billion by the time administrators took control. These difficulties were attributed to a combination of mismanagement and fraudulent practices that severely impacted operations and led to production stoppages.

Despite these challenges, the acquisition includes substantial industrial assets that make the investment attractive to the new owners. The main industrial property alone is valued at Sh10.1 billion, representing the largest component of the transaction. Additional assets include a strategically located 2.5-acre parcel in Kitengela valued at Sh750 million, providing the consortium with significant real estate holdings alongside the core manufacturing capabilities.

The timing of this acquisition coincides with a broader consolidation trend sweeping through Kenya’s cement industry. Wealthy investors are increasingly recognizing the sector’s potential, driven by sustained demand from the country’s construction boom and infrastructure development projects. This move follows closely behind Tanzanian tycoon Edha Abdallah Munif’s acquisition of Bamburi Cement and his ongoing efforts to secure an additional 29.2 percent stake in East Africa Portland Cement Company.

Should Munif succeed in his Portland Cement bid, his combined holdings would give him direct and indirect control over approximately 31 percent of Kenya’s total cement production capacity. This level of market concentration sets up an intriguing competitive dynamic with other major industry players, including the Rai family’s Rai Cement operations located at the border of Kisumu and Kericho counties, and Narendra Raval’s diversified cement empire encompassing National Cement, ARM, and Cemtech.

Current market dynamics show Mombasa Cement leading the sector with a commanding 33 percent market share, followed by National Cement at 26 percent and Bamburi holding 22 percent of the market. East Africa Portland Cement maintains a 10 percent share, while Rai Cement controls 5 percent. Before its financial troubles, Savannah Cement held a 1.5 percent market share, tied with Ndovu Cement for sixth position among local producers.

Industry analysts expect Kenya’s cement market to undergo significant changes in 2025 as several companies pursue planned expansions of their clinker production capacity. These developments, including initiatives by Simba Cement and Portland Cement, are expected to lower production costs across the industry and potentially reshape competitive dynamics as companies compete for market share in an increasingly crowded field.

The entry of experienced flour milling entrepreneurs into cement manufacturing brings valuable operational expertise from related industrial sectors. Their deep understanding of large-scale production processes, sophisticated supply chain management, and extensive distribution networks could prove instrumental in Savannah Cement’s revival and future growth prospects.

From an employment perspective, the deal is expected to preserve existing jobs at Savannah Cement’s facilities while potentially creating additional opportunities as the new ownership team works to restore full production capacity. The transaction ensures that a significant manufacturing asset remains operational rather than being liquidated, maintaining crucial industrial capacity within Kenya’s construction materials sector.

The Savannah Cement acquisition represents more than just a corporate rescue mission. It demonstrates the ongoing confidence of established Kenyan business families in the country’s construction and infrastructure sectors, even amid economic uncertainties. As the new ownership team applies their proven manufacturing expertise to cement production, the industry may witness renewed innovation and competition that could ultimately benefit consumers and support the broader construction sector’s continued growth.

This transaction also provides a notable example of successful debt recovery through strategic acquisition, potentially offering a template for resolving similar corporate distress situations in Kenya’s manufacturing landscape. The deal’s completion shows how patient capital and experienced management can breathe new life into troubled but fundamentally viable industrial assets.

Looking ahead, the revitalized Savannah Cement under its new ownership is positioned to compete more effectively in a market that continues to benefit from Kenya’s urbanization trends and infrastructure development needs. The combination of the investors’ financial resources, operational experience, and strategic vision could transform the company from a distressed asset into a meaningful competitor in the country’s dynamic cement industry.

Co-operative Bank of Kenya has reported a robust after-tax profit of Sh14.1 billion for the first half of 2025, marking an impressive 8.4 percent rise from Sh13 billion in the same period last year.

The growth is attributed to a strong surge in both interest and non-interest income, with operating income climbing 10.8 percent to Sh43.5 billion, bolstered by a 23.1 percent jump in net interest income to Sh44.8 billion.

Chief Executive Officer Gideon Muriuki highlighted the bank’s strategic focus on sustainable growth, resilience, and agility as key drivers of this success, elevating the return on equity to 19.9 percent.

The bank, majority-owned by the 15-million-member co-operative movement through Co-op Holdings Co-operative Society Limited with a 64.56 percent stake, has also expanded its footprint by opening 15 new branches in Kenya, bringing the total to 212.

Despite a challenging economic environment, the bank increased loan-loss provisions by 50 percent to Sh4.5 billion and saw operating expenses rise 13 percent to Sh24 billion, driven by higher staff costs and the addition of 450 employees, bringing the workforce to 5,850.

Subsidiaries also contributed significantly, with Co-op Trust Investment Services reporting a 152.8 percent profit surge to Sh360.8 million and funds under management growing to Sh461.7 billion.

The supportive monetary policy from the Central Bank of Kenya, which lowered the benchmark lending rate to 9.50 percent in August, further aided the bank’s performance by reducing borrowing costs and boosting loan demand.

With assets growing 13.2 percent to Sh811.9 billion and customer deposits up 9.4 percent to Sh547.7 billion, Co-op Bank continues to solidify its position as a leading financial institution in the region.

Pax Manor Muthaiga stands as a rare jewel in the heart of Nairobi, a sanctuary of elegance and sophistication that redefines what it means to experience luxury hospitality in Kenya.

More than simply a place to stay, this 5-star boutique hotel offers a fully immersive journey into comfort, style, and personalized service.

From the moment guests arrive, they are welcomed into a world where every detail has been thoughtfully curated to inspire tranquility, refinement, and unforgettable memories.

Nestled at 58 Muthaiga Road, the hotel enjoys a location that strikes the perfect balance between accessibility and exclusivity.

The prestigious Muthaiga neighborhood is one of Nairobi’s most sought-after addresses, celebrated for its serene charm, lush greenery, and elite status.

This prime setting allows guests to enjoy the peace of a discreet retreat while remaining within easy reach of the city’s vibrant business hubs, cultural landmarks, and leisure attractions.

Whether visiting Nairobi for business, leisure, or a special occasion, Pax Manor Muthaiga offers an unmatched combination of privacy and convenience.

Stepping inside, guests are immediately embraced by an atmosphere of timeless elegance. The hotel’s architecture seamlessly blends contemporary sophistication with a subtle infusion of Kenyan charm.

Suites are designed to maximize both space and comfort, with some offering sweeping views of the nearby Karura Forest.

The interiors are marked by custom-crafted furnishings, warm lighting, and a meticulous attention to detail that reflects the property’s commitment to excellence.

Whether savoring a quiet moment by the fireplace, enjoying the fresh air in the manicured gardens, or relaxing in the serene infinity pool after a day in the city, guests are surrounded by an environment that encourages both rest and indulgence.

Wellness is a central part of the Pax Manor experience. The fully equipped Hermes gym caters to fitness-conscious travelers who prefer to maintain their routines in an elegant and inspiring setting.

Those seeking a more leisurely pace can unwind in the cigar lounge, a refined space designed for quiet conversation and intimate relaxation. Every corner of the hotel has been created to offer not just comfort, but a sense of belonging and ease.

Culinary excellence is another hallmark of Pax Manor Muthaiga. The hotel’s signature restaurant, @Royal58, is a celebration of both flavor and finesse, offering a carefully curated menu that fuses Pan-Asian creativity with African vibrancy.

Each dish is prepared with artistry, using the finest locally sourced and seasonal ingredients to create meals that satisfy the palate as much as they inspire the senses.

Guests can enjoy a lavish gourmet breakfast to start their day, followed by an exquisite dinner in a candlelit setting that transforms every meal into a special occasion.

Business travelers will find that Pax Manor is more than prepared to meet their professional needs. The hotel offers state-of-the-art conference facilities and personalized services for meetings, retreats, and events.

Its close proximity to Gigiri and the United Nations headquarters makes it a strategic choice for international delegates, diplomats, and executives who value both discretion and convenience.

Every corporate gathering hosted at Pax Manor is executed with a level of precision, elegance, and professionalism that ensures a lasting impression.

At the helm of this exceptional hospitality experience is General Manager Thomas Joseph, a distinguished leader with a career that spans some of the most respected luxury brands across the globe. His leadership combines strategic vision with heartfelt dedication to guest satisfaction.

Thomas is renowned for his commitment to personalized engagement, ensuring that every visitor feels uniquely valued and cared for.

His focus on staff development, operational excellence, and cultural sensitivity has transformed Pax Manor Muthaiga into a globally respected name in luxury boutique accommodation.

Under his guidance, the hotel harmoniously blends Kenyan warmth with the sophistication of international hospitality.

Pax Manor Muthaiga is more than a luxury hotel in Nairobi; it is an experience that stays with guests long after they check out. From its exclusive location in Muthaiga and its impeccably designed interiors to its exceptional dining and dedicated service, every element works together to create a sense of timeless elegance.

Guests return not only for the comfort and amenities, but for the sense of home and belonging that the hotel cultivates.

For travelers seeking the finest luxury accommodation in Kenya, Pax Manor Muthaiga offers a compelling invitation to indulge in the art of refined hospitality.

Here, every stay is personalized, every detail is perfected, and every moment is crafted to be memorable.

Whether it is a corporate visit, a romantic escape, or a well-deserved retreat, Pax Manor promises an experience where sophistication meets serenity.

From the first welcome to the final farewell, Pax Manor Muthaiga delivers not just service, but a legacy of unforgettable hospitality.

Book your stay today and discover why Pax Manor Muthaiga is celebrated as Nairobi’s premier 5-star boutique hotel.

East Africa’s largest bank delivers strong H1 2025 results despite challenging operating environment

KCB Group Plc announced robust financial performance for the first half of 2025, with net profit climbing 8% to KSh 32.3 billion from KSh 29.9 billion in the previous period. The strong results have prompted the board to approve a historic dividend payout totaling KSh 13 billion to shareholders.

The Nairobi-based banking giant, which operates across seven East African countries, declared an interim dividend of KSh 2.00 per share alongside a special dividend of KSh 2.00 per share related to the sale of National Bank of Kenya. This marks both the largest interim payment and the first special dividend in the bank’s 129-year history.

“The business across markets remains resilient despite the tough operating environment in key markets like Kenya,” said Group Chief Executive Officer Paul Russo during Wednesday’s results announcement. “We have placed our customers at the fore, to ensure we meet their needs in a timely manner.”

## Strong Regional Performance

The group’s regional diversification strategy continued to pay dividends, with subsidiaries outside KCB Bank Kenya contributing 33.4% of overall group earnings and 31.4% of the balance sheet. Non-banking entities including KCB Investment Bank, KCB Asset Management, and KCB Bancassurance Intermediary Limited increased their profit before tax contribution to 2.1% from 1.8% year-on-year.

Total assets remained stable at KSh 1.97 trillion despite the sale of NBK in the second quarter, demonstrating the group’s capacity to support customers across its operating territories. The loan portfolio grew 2.8% to KSh 1.18 trillion, representing a 12% increase when excluding the NBK impact.

## Revenue Growth and Digital Innovation

Total revenue increased 4.3%, driven by higher net interest income that rose to KSh 69.1 billion from KSh 61.3 billion. The group’s digital transformation continued to gain traction, with 99% of transactions conducted through non-branch channels, helping maintain non-funded income at KSh 29.5 billion.

In a significant digital milestone, KCB launched a new unified mobile app on August 11, featuring breakthrough self-onboarding capabilities and artificial intelligence-powered services. The platform allows customers to register and begin banking instantly through a mini-app ecosystem designed for scale and inclusivity.

## Credit Quality and Capital Strength

The group maintained prudent risk management practices, with non-performing loans improving to 18.7% from 19.2% in December 2024. Capital buffers remained well above regulatory requirements, with core capital at 17.0% of risk-weighted assets against the statutory minimum of 10.5%.

Return on equity stood strong at 22.2%, while return on assets reached 3.3%. Total equity attributable to shareholders surged 27.3% to KSh 306.8 billion from KSh 241.0 billion.

## Strategic Developments and Recognition

The period saw several key corporate developments, including the completion of NBK’s sale to Access Bank on May 30, 2025, and the opening of six new branches across Kenya, Tanzania, and Rwanda. The group also issued KSh 26.9 billion in green loans, reinforcing its commitment to sustainable finance.

KCB’s performance earned international recognition, with the Financial Times naming it among Africa’s fastest-growing companies. The bank secured five major awards from Euromoney, including Africa’s Best Bank for Corporate Responsibility and Kenya’s Best Bank for Environmental, Social and Governance.

“The strong half year performance and the projected trajectory of the business has allowed us great bandwidth to propose a historic special and interim dividend to shareholders,” said Group Chairman Dr. Joseph Kinyua, highlighting the bank’s confidence in its future prospects despite regional uncertainties.

With its extensive network of 455 branches and 1,224 ATMs serving over 1.3 million merchants and agents across East Africa, KCB continues to leverage its regional scale to drive economic transformation while delivering value to stakeholders.