Kenya Insights

Category: Business

  • Mogo Auto Trashes Customers Complaints On Alleged Predatory Lending Practices in Class Action Suit

    Mogo Auto Trashes Customers Complaints On Alleged Predatory Lending Practices in Class Action Suit

    # Mogo Auto Dismisses Class Action as Frivolous Publicity Stunt in High-Stakes Lending Battle

    Micro lender Mogo Auto Ltd has come out swinging against borrowers attempting to drag the company into what could become one of Kenya’s largest consumer finance class action lawsuits, branding the case a sensationalist attack designed to destroy its reputation.

    In a blistering response filed at the High Court, the firm has urged judges to throw out the petition brought by three borrowers who claim the company engaged in predatory lending practices that trapped vulnerable Kenyans in a web of hidden charges and deceptive loan terms.

    Mogo has dismissed the suit as frivolous, vexatious, and fundamentally flawed, arguing that the borrowers have failed to meet even the most basic legal requirements for launching a representative action against the vehicle and motorbike financing company.

    The company insists the three complainants have not demonstrated any common interest, common grievance, or common relief that would justify them speaking for potentially thousands of other borrowers. According to Mogo’s legal team, the alleged victims the trio claims to represent have not been identified with reasonable certainty, making the proposed class action uncertain, vague, and impossible to implement.

    But it is Mogo’s allegations about the motives behind the lawsuit that reveal just how seriously the company is taking this legal challenge. The lender claims the application amounts to an abuse of court process specifically designed to sensationalize the matter, attract undue publicity, and unfairly damage the company’s reputation and commercial standing in Kenya’s competitive lending market.

    In particularly strong language, Mogo argues that the borrowers are attempting to circumvent critical procedural safeguards, multiply claims against the company, and open the floodgates to unverified and unconnected complaints that could overwhelm the judicial system.

    The company maintains that each borrower’s situation involves individualized contractual and factual issues that cannot be determined through a single proceeding or resolved with common relief, making a class action fundamentally inappropriate for this type of dispute.

    The legal battle erupted after three borrowers filed a petition claiming Mogo’s loan documentation and disclosure methods were deliberately misleading and deceptive. The complainants allege the company systematically fails to properly inform borrowers about the true cost of credit, the effect of foreign currency indexing, and the real financial obligations they are undertaking when they sign on the dotted line.

    According to the borrowers, these critical details are uniformly concealed from consumers in violation of basic commercial fairness standards, leaving ordinary Kenyans trapped in loan agreements they never fully understood.

    The three borrowers are now seeking court orders to institute a class action on their own behalf and on behalf of potentially thousands of other Mogo customers who they claim have been subjected to the same treatment. They argue the company’s conduct constitutes a clear pattern of predatory lending that deliberately targets vulnerable consumers with misleading promises of affordable financing for vehicles and motorbikes.

    Once borrowers sign up, the petition alleges, they are subjected to hidden charges, inflated insurance premiums, and aggressive repossession threats that amount to an exploitative business model affecting all customers equally. The borrowers claim that consumers who obtained motor vehicle or asset financing from Mogo under its standard form loan agreements have all been subjected to similar loan terms, interest calculations, recovery methods, and insurance arrangements.

    Through their lawyer Simon Mburu, the trio is seeking court permission to invite other Mogo borrowers to join the case through newspaper advertisements and digital platforms. If successful, this could potentially bind thousands of borrowers to the outcome of the proceedings, making it one of the most significant consumer protection cases in Kenya’s financial services sector.

    The borrowers are seeking declaratory orders, injunctions, and restitution that they argue will apply uniformly to all customers who were subjected to the same contract structure and business practices. They want the court to formally recognize that Mogo’s lending model violates consumer protection standards and to order the company to compensate affected borrowers.

    The case highlights growing concerns about lending practices in Kenya’s micro finance sector, where companies have proliferated in recent years offering quick access to credit for vehicle purchases. Consumer advocacy groups have long warned that some lenders use complex contract terms and hidden charges to trap borrowers in debt cycles they cannot escape.

    For Mogo Auto, the stakes could not be higher. A successful class action could result in massive financial penalties and irreparable damage to the company’s reputation in a market where consumer trust is essential. The company’s aggressive response suggests it views this case as an existential threat that must be defeated at the earliest possible stage.

    The High Court will now have to decide whether the borrowers have met the legal threshold for launching a class action or whether Mogo’s objections are sufficient to have the case dismissed before it can gain momentum. The decision could set important precedents for how consumer lending disputes are handled in Kenya and whether aggrieved borrowers can band together to challenge powerful financial institutions.

    As the legal battle intensifies, thousands of Mogo customers across Kenya will be watching closely to see whether the courts will allow them their day in court or whether the company’s motion to dismiss will shut down the case before it truly begins.​​​​​​​​​​​​​​​​

  • Gor Semelang’o Released From Jail But Not Allowed To Leave Dubai Over Multimillion Investment Scam

    Gor Semelang’o Released From Jail But Not Allowed To Leave Dubai Over Multimillion Investment Scam

    The high-flying former Youth Fund chairman who once gifted his son a Sh4.5 million Mustang is now stuck in the desert city, living like a caged bird with his passport under lock and key

    They say what goes up must come down, and for flashy businessman Gor Semelang’o, the descent has been nothing short of spectacular. The man who once strutted around Nairobi wearing two Sh500,000 watches set to different time zones is now counting the days in a gilded Dubai prison of his own making.

    After nearly four months languishing behind bars in the United Arab Emirates, the former Youth Enterprise Development Fund chairman finally tasted freedom this week when he secured bail. But here’s the kicker: freedom in Dubai means something very different from freedom back home. Semelang’o can walk the glittering streets of the desert city, dine in its finest restaurants, and even sip champagne at its exclusive clubs, but the one thing he cannot do is board a plane back to Kenya. His passport remains firmly in the hands of Dubai authorities, a constant reminder that he is still very much their guest, whether he likes it or not.

    The saga that landed the oil tycoon in this mess reads like a script from a Hollywood thriller. It all started with a nightclub venture in Dubai that went spectacularly wrong. Semelang’o had partnered with a Kenyan businesswoman known only as Mary in what was supposed to be a lucrative club business in the glitzy Emirates. But somewhere along the line, champagne toasts turned to bitter accusations, and handshakes morphed into handcuffs.

    According to sources close to the matter, Mary accused Semelang’o of defrauding her of millions of shillings in what investigators are treating as a classic case of investor swindle. The businessman, who made his name during President Mwai Kibaki’s era when he chaired the Youth Fund, suddenly found himself on the wrong side of Dubai’s notoriously strict commercial laws. And in Dubai, unlike Kenya where such matters would be handled in civil court over cups of tea and lawyer fees, business disputes are treated as criminal offenses. One day you’re a shareholder, the next you’re an inmate.

    Enter Donald Kipkorir, the flamboyant city lawyer who never met a high-profile case he didn’t like. Describing Semelang’o as his “BFF,” Kipkorir has been working overtime to get his friend out of this mess. It was Kipkorir’s legal maneuvering that finally secured the bail that allowed Semelang’o to walk out of detention earlier this week, bringing an end to what must have been the longest four months of the businessman’s life.

    But the veteran lawyer knows that getting his client out of the remand cell was just the first battle. The war is far from over. Kipkorir has been burning the midnight oil, reaching out to Kenya’s Foreign Affairs Principal Secretary Korir Sing’oei, pleading for diplomatic intervention. His argument is simple but powerful: why should two Kenyans settle a business dispute in a foreign court when Kenya has a perfectly good legal system? It’s like going to your neighbor’s house to resolve a family quarrel, he argues, it just doesn’t make sense.

    The whole situation has exposed the dark underbelly of doing business in Dubai. What seems like paradise from the outside, with its towering skyscrapers and tax-free shopping, can quickly become a legal nightmare for foreigners who run afoul of its Byzantine business regulations. Semelang’o learned this the hard way when he was arrested back in October, yanked off the streets and thrown into remand over what he and his lawyers insist was nothing more than a shareholder disagreement.

    The rumor mill has been working overtime since news of his arrest broke. Social media was awash with whispers of money laundering investigations, with some claiming that Dubai’s Financial Crimes Unit had been tracking the businessman for weeks. The speculation reached fever pitch when Semelang’o’s usually active Instagram account, typically flooded with photos of luxury yachts, private jets, and celebrity hangouts, suddenly went silent. His last post was on October 2, showing him living it up on a luxury yacht in Dubai, surrounded by friends and champagne. Then, radio silence. It was the kind of ominous quiet that makes people start asking questions.

    But Kipkorir and Semelang’o’s inner circle have vigorously dismissed these money laundering claims as malicious gossip. Nelson Amenya, another close friend, came out guns blazing to set the record straight. “My friend Gor Semelang’o is not in prison and certainly not for money laundering,” Amenya declared, making it clear that the issue was purely a shareholder dispute over the nightclub business. He emphasized that Semelang’o was in remand, not prison, a distinction that matters in legal circles but probably felt the same to the man behind bars.

    Back home in Kenya, Semelang’o has his own legal troubles to worry about. Court proceedings related to another multi-million shilling fraud case involving two business partners are scheduled to resume in January 2026. That case, also linked to a club business deal gone sour, has been hanging over his head like the sword of Damocles. The two partners allege that Semelang’o defrauded them of millions, accusations he has consistently denied while maintaining his innocence.

    For those who remember Semelang’o’s glory days, this double whammy of legal troubles is a shocking fall from grace. This is a man who once sold a 45 percent stake in his Petrokenya Oil Company to a UAE-based firm for a cool Sh4.5 billion back in 2020. He was the king of Nairobi’s social scene, the guy who would casually gift his son a brand-new Mustang sports car and think nothing of it. He wore expensive watches like other people wear wedding rings and had business interests stretching from petroleum to media to real estate.

    His appointment by President Kibaki to chair the Youth Fund in 2013 seemed to cement his status as one of Kenya’s business elite. But that stint ended abruptly when President Uhuru Kenyatta dismissed him in 2014, and some say that was when the cracks in his empire first started to show. By 2019, he was being jailed in Kenya for 30 days after defaulting on a Sh3.6 million debt to his own lawyer. For a man who once claimed to have businesses in New York and needed two watches to track different time zones, failing to pay a legal bill was a humiliating comedown.

    The irony is rich. Semelang’o, who joined Kalonzo Musyoka’s Wiper Democratic Movement in August 2025 and was appointed to the National Executive Council, now finds himself unable to attend party meetings or participate in the political machinations he so clearly enjoyed. The party leader had praised his entry as timely in shaping the party’s national outlook, particularly in youth development and media engagement. But how can you develop youth from a Dubai hotel room when you can’t even board a flight home?

    The case has also highlighted the dangers facing Kenyan businesspeople with investments in the Gulf states. Dubai markets itself as a business paradise, but its legal system operates on a completely different wavelength from what East Africans are used to. What seems like a simple shareholder dispute here can land you in criminal court there, with your passport confiscated and your freedom hanging by a thread.

    For now, Semelang’o waits. He can taste freedom, but it comes with an asterisk. He can walk around Dubai, maybe even visit the club that landed him in this mess, but every day he wakes up in the Emirates is another day away from home, another day his legal bills pile up, another day his reputation takes another beating in the court of public opinion.

    Kipkorir remains optimistic that his diplomatic efforts will bear fruit. He’s banking on his friendship with PS Sing’oei to cut through the red tape and bring his client home. “Gor is one of the few Kenyans who has no tribalism in his bones,” Kipkorir has said repeatedly, as if to remind everyone that whatever his business failings, Semelang’o is a good man who deserves a break.

    But in Dubai, where image is everything and the law is unforgiving, being a good man with a big heart counts for nothing if you’re accused of defrauding a business partner. The wheels of justice grind slowly in the Emirates, and for Semelang’o, every rotation brings him closer to either vindication or further disgrace.

    The businessman’s legal team is expected to mount a vigorous defense when court proceedings resume in January, both in Dubai and back in Kenya. They will challenge the allegations, present their side of the story, and fight to clear his name. But until then, Gor Semelang’o remains Dubai’s most reluctant resident, free but not free, out of jail but still in prison, able to see the planes taking off from Dubai International Airport but unable to board one heading home.

    For a man who once flew so high, being grounded is perhaps the cruelest punishment of all.

  • Hass Petroleum Empire Faces Collapse as Court Greenlights KSh 1.2 Billion Property Auction

    Hass Petroleum Empire Faces Collapse as Court Greenlights KSh 1.2 Billion Property Auction

    The sprawling business empire of prominent Kenyan businessman Abdinasir Ali Hassan, chairman of Hass Petroleum Group Limited, is teetering on the brink of financial ruin after the Court of Appeal delivered a crushing blow to his desperate attempts to save a prime Nairobi property from the auctioneer’s hammer.

    In a devastating ruling that has sent shockwaves through Kenya’s business community, a three-judge appellate bench comprising Justices Wanjiru Karanja, Mumbi Ngugi, and Aggrey Muchelule dismissed Hassan’s eleventh-hour petition with costs, paving the way for Credit Bank Limited to proceed with the auction of a prized Upper Hill property valued at a staggering KSh 1.2 billion.

    The court’s decision marks a spectacular fall for the petroleum magnate, whose business interests now hang in the balance as creditors close in on valuable assets that once symbolized his commercial success.

    Court documents reveal a complex web of corporate debt that began unraveling in September 2020 when One Upperhill Towers Limited pledged the suit property as collateral to Credit Bank Limited. The security was intended to guarantee enormous financial facilities totaling KSh 1.2 billion that had been advanced to two associated companies, Jabavu Village Limited and Hasson Pharmaceuticals Limited.

    The deal appeared straightforward until cracks began to emerge. By January 30, 2025, One Upperhill Towers Limited was racing to the High Court in a frantic bid to stop Credit Bank Limited from auctioning the property through Purple Royal Auctioneers and Garam Investments Auctioneers.

    In court papers filed with evident urgency, Hassan’s camp painted a picture of corporate persecution, claiming the loan had been serviced regularly and that the bank’s auction plans were nothing short of malicious, unprocedural and unlawful. They accused Credit Bank of brazenly flouting mandatory provisions enshrined in Sections 89, 90, and 96 of the Land Act, insisting their legal right to redeem the property had been trampled upon.

    But the Court of Appeal was having none of it. In a ruling that legal experts describe as unambiguous and final, the three judges tore through the arguments presented by Hassan’s legal team, finding them fundamentally lacking in merit.

    The court held that evidence of default was crystal clear and indisputable. In language that left no room for misinterpretation, the judges explained that once a charged property is used to secure a loan and the borrower fails to meet their obligations, the property automatically transforms into a commodity available for sale. The default, they determined, triggered the bank’s legitimate right to recover its funds through auction.

    The decision represents more than just a legal defeat for Hassan. It exposes the precarious financial position of businesses operating under the Hass Petroleum umbrella and raises uncomfortable questions about the group’s ability to service massive debts accumulated during what now appears to have been an aggressive expansion phase.

    Upper Hill, where the doomed property sits, ranks among Nairobi’s most sought-after commercial districts. The area has transformed dramatically over the past decade into a gleaming corridor of glass towers, international hotels, and corporate headquarters. A KSh 1.2 billion property in this prime location represents not just significant value but a strategic asset that any business would fight tooth and nail to retain.

    The fact that Hassan has lost this legal battle suggests the financial pressures facing his group may be far more severe than previously understood. Business analysts watching the case have begun speculating about what other assets might be at risk and whether this auction represents an isolated incident or the beginning of a broader unraveling.

    Credit Bank Limited, for its part, has maintained a studied silence throughout the legal proceedings, allowing its lawyers to do the talking in court. The bank’s position has been consistent and unyielding. The money was lent, the property was pledged, payments were not made as required, and therefore the auction must proceed. The Court of Appeal has now validated that position entirely.

    For Purple Royal Auctioneers and Garam Investments Auctioneers, the firms tasked with conducting the sale, the court’s green light means they can now move forward with what promises to be one of the most significant property auctions in recent Kenyan commercial history. Industry insiders expect intense bidding from deep-pocketed investors eager to snap up prime real estate at what they hope will be below-market prices.

    The wider implications of this case extend beyond Hassan’s personal business interests. The Hass Petroleum Group has been a visible player in Kenya’s energy sector for years, operating fuel stations across the country and positioning itself as a homegrown competitor to multinational oil companies. The group’s potential financial distress raises questions about stability in the sector and the sustainability of aggressive business models built on substantial leverage.

    Legal experts note that the Court of Appeal’s dismissal with costs adds insult to injury for Hassan. Not only has he lost the substantive case, but he must now pay the legal expenses incurred by Credit Bank Limited in defending against his appeal. These costs, while likely modest compared to the KSh 1.2 billion at stake, underscore the totality of his defeat.

    As the dust settles on this bruising court battle, attention now turns to whether Hassan and his associated companies will attempt any further legal maneuvers to delay the inevitable or whether they will finally accept defeat and allow the auction to proceed. Legal observers suggest that further appeals at this stage would be futile given the comprehensive nature of the Court of Appeal’s dismissal.

    The case serves as a stark reminder of the risks inherent in using valuable property as collateral for business loans. While such arrangements can fuel expansion and growth during good times, they can quickly become existential threats when cash flows tighten and loan obligations cannot be met.

    For Credit Bank Limited, the ruling represents vindication of its rights as a lender and sends a clear message to other borrowers about the consequences of default. The bank can now proceed to recover its funds through the auction process, although whether the property will fetch its full KSh 1.2 billion valuation in a competitive sale remains to be seen.

    As the gavel prepares to fall on this prime Upper Hill property, Abdinasir Ali Hassan must confront an uncomfortable new reality. The business empire he built is facing its gravest challenge, and the courts have made clear they will not intervene to save him from the consequences of financial decisions made years ago.

  • Temporary Reprieve As Mohamed Jaffer Wins Mombasa Land Compensation Despite Losing LPG Monopoly and Bitter Fallout With Johos

    Temporary Reprieve As Mohamed Jaffer Wins Mombasa Land Compensation Despite Losing LPG Monopoly and Bitter Fallout With Johos

    MOMBASA—In what appears to be a rare victory amid mounting business pressures, controversial Mombasa tycoon Mohamed Jaffer has secured a major legal win after the Environment and Land Court ordered the Kenya National Highways Authority and the National Land Commission to compensate him for land seized during the expansion of the Mombasa-Nairobi highway.

    The court’s November 26 ruling represents a temporary reprieve for the businessman whose once-unassailable dominance in Kenya’s port logistics sector has come under sustained assault from powerful rivals and political heavyweights, setting the stage for what insiders describe as the most vicious business war ever witnessed in the coastal region.

    Justice presiding over the Malindi court directed KeNHA and NLC to pay Jaffer and his business associate, industrialist Ashok Doshi, full compensation for parcels of land in Mariakani, Kilifi County, within 60 days.

    The two businessmen had sued after government authorities demolished their perimeter wall and began construction work without following proper land acquisition procedures.

    The court found that there had been no notice of intent to acquire, no inquiry, no participation by the petitioners, no valuation, no award, and critically, no compensation before the authorities bulldozed onto the private property and tore down the boundary wall in January this year.

    However, this legal victory comes at a time when Jaffer’s business fortunes appear increasingly besieged on multiple fronts.

    The tycoon, who has enjoyed what competitors describe as a three-decade monopoly in the lucrative cooking gas and grain handling sectors at Mombasa port, now finds himself fighting battles in courtrooms, boardrooms and the unforgiving arena of public opinion.

    Just weeks before his land compensation victory, Jaffer suffered a crushing defeat when the High Court cleared Tanzanian billionaire Rostam Aziz to proceed with the construction of a massive Sh16 billion LPG terminal at Dongo Kundu Special Economic Zone in Likoni.

    The 30,000-metric-ton facility, which Aziz claims will be the largest in Africa, will operate right at Jaffer’s doorstep, directly challenging his Africa Gas and Oil Ltd plant in the same area.

    The court ruled that a petition seeking to stop the Taifa Gas project was improperly filed and that environmental concerns should have been addressed through the National Environmental Tribunal rather than the courts.

    For Aziz, who was ranked Tanzania’s first dollar billionaire by Forbes in 2013, the ruling represents a significant breakthrough after years of what he described as bureaucratic stonewalling by Kenyan authorities.

    Industry analysts predict the entry of Taifa Gas will trigger fierce competition that could finally break Jaffer’s iron grip on Kenya’s cooking gas market, potentially leading to lower prices for the 2.87 million Kenyan households that rely on LPG for cooking.

    Mr. Rostam Aziz
    Mr. Rostam Aziz

    Aziz has already begun supplying the Kenyan retail market via road from Tanzania, but the new terminal will give him the capacity to compete directly with established players like Vivo, Rubis and Total.

    The stakes are enormous.

    Jaffer’s AGOL plant, which has a storage capacity of 25,000 tonnes following upgrades to the facility originally built in 2013, has operated with minimal competition, allowing the tycoon to charge fees that industry insiders suggest have remained artificially high due to lack of market pressure.

    His ownership of Proto Energy, the maker of Pro Gas, along with AGOL, has given him what competitors describe as a stranglehold on the sector.

    But the threat from Aziz pales in comparison to the scorched-earth confrontation between Jaffer and the politically connected Joho family, a feud that has spilled from business competition into character assassination and criminal courts.

    At the center of the storm is Abubakar Ali Joho, brother to Cabinet Secretary for Mining and Blue Economy Hassan Joho, whose entry into the port logistics business through Autoport Freight Terminus and Portside Freight Terminal has allegedly triggered what he describes as a sustained smear campaign orchestrated by Jaffer.

    The bad blood between the two business titans exploded into public view when Matilda Maodo Kinzani, an employee of Jaffer’s Bulkstream Ltd, was charged in court with publishing false and defamatory information linking Abu Joho to a Sh40 billion fraud scheme.

    The document, which allegedly circulated on WhatsApp and social media, made grave accusations against the Joho family including involvement in drug trafficking and illegal acquisition of Kenya Railways land.

    During explosive court testimony, Abu Joho directly blamed Jaffer for the attacks. “He has had a monopoly for 30 years. Now that I have entered the port business, that’s where our troubles began. He is the monopoly; I am not,” Abu Joho told the court, his voice heavy with frustration. “This is not business competition. It’s character assassination. It has affected me, my business, and my family.”

    The case took a dramatic turn when it emerged that Philip Mainga, Managing Director of Kenya Railways Corporation, allegedly alerted Abu Joho to the existence of the defamatory document.

    Police Constable Fredrick Muchiri of the Anti-Terror Police Unit testified that Mainga informed Abu Joho about the circulating document, though he admitted he had not examined Mainga’s phone to verify the communication.

    The involvement of seven Anti-Terror Police Unit officers in raiding Kinzani’s home and workplace to seize electronic devices raised eyebrows, with defense lawyers questioning why an anti-terrorism unit was investigating what appeared to be a straightforward cybercrime case.

    Muchiri defended the unit’s involvement, insisting they were not investigating terrorism.

    Forensic analysis traced the defamatory document to Kinzani’s electronic devices, leading to her being charged with four counts under the Computer Misuse and Cybercrimes Act.

    She has denied all accusations and is currently out on Sh300,000 cash bail.

    For Jaffer, who also controls Grain Bulk Handlers with its near-monopoly on discharge and handling of bulk grain cargo at Mombasa port, the convergence of these battles represents the greatest threat to his business empire in decades.

    His dominance has been built not just on infrastructure and capital, but on carefully cultivated political networks that have helped him navigate the treacherous waters of Kenyan business.

    The same could be said of his adversaries.

    Aziz served as an MP and treasurer of Tanzania’s ruling party Chama Cha Mapinduzi, while the Joho family’s political connections need no introduction, with Hassan Joho serving in President William Ruto’s Cabinet after years as Mombasa Governor.

    The land compensation ruling, while a victory, does little to address the fundamental challenge facing Jaffer.

    His business model, predicated on monopolistic control of critical port infrastructure, is being systematically dismantled by competitors with deep pockets, political backing, and the determination to break his grip on the coastal economy.

    The National Land Commission’s claim that it had conducted a review of grants and dispositions in Kilifi, Mombasa and Kwale counties, arriving at recommendations published in a Gazette Notice that potentially affected Jaffer and Doshi’s land titles, suggests that even this week’s court victory may face further legal challenges.

    As the billionaire’s brawl intensifies, ordinary Kenyans can only watch and hope that the competition ultimately translates into lower costs for essential services like cooking gas and port logistics.

    Whether Jaffer can weather this perfect storm of legal battles, business competition and political vendettas remains to be seen.

    What is certain is that the era of unchallenged dominance in Mombasa’s port economy is over.

    The question now is not whether Jaffer’s monopoly will be broken, but how much of his business empire will remain standing when the dust finally settles.

  • Court Told How EABL Has Exploited Artists, Influencers in Campaigns

    Court Told How EABL Has Exploited Artists, Influencers in Campaigns

    A bitter legal battle has erupted at the Milimani Law Courts where lawyers representing media personality Willis Raburu have accused East African Breweries Limited of systematically exploiting artists and influencers in its marketing campaigns.

    The allegations emerged during proceedings in which Steizon Limited, a digital communication company owned by Raburu, is suing EABL and its marketing agent Game Changer Marketing Limited for allegedly withholding KSh10 million owed for work delivered during the Furaha City Festival held on December 7, 2024.

    Lawyer Martina Swiga, part of the legal team acting for Steizon alongside Danstan Omari, told the court that the non-payment represents a gross violation of artists’ rights and contractual obligations.

    She described the case as emblematic of a broader pattern where corporate entities engage creative professionals for major campaigns but fail to honour payment agreements.

    According to court documents, Steizon entered into a binding agreement with Game Changer Marketing Limited, which was acting as EABL’s agent, to provide comprehensive promotional and event coordination services for what was marketed as the Wabebe Experience during the festival.

    The scope of work was extensive.

    Steizon claims it delivered influencer engagement, digital promotion, brand visibility enhancement, logistical execution, security collaboration, media coordination and full event management.

    The company says it produced over 60 video reels, more than 100 static posts, and achieved a social media reach exceeding one million users.

    In a sworn statement filed before the High Court in Nairobi, Willis Wayne Raburu, director of Steizon Limited, detailed his personal involvement in the project.

    He said he supervised teams, coordinated artists and influencers, oversaw media production and ensured smooth execution of the event.

    Despite fulfilling all contractual obligations, Raburu told the court, the agreed payment of KSh10 million has never been remitted.

    He said after the event concluded, Steizon was instructed to prepare a detailed report to facilitate payment processing.

    The company complied and submitted the report, only for Game Changer Marketing to allegedly redirect them to another entity rather than settling the outstanding dues.

    The legal team argues that such practices have become disturbingly common in Kenya’s creative industry, where artists and content creators invest significant resources, time and talent into corporate campaigns only to face payment delays or outright refusal to honour agreements.

    Raburu’s lawyers told the court that the failure to pay has caused severe financial strain on Steizon Limited.

    Beyond the immediate monetary loss, they argue the company’s reputation has been tarnished, affecting its ability to secure future contracts and maintain operational stability.

    Steizon is now asking the court to declare the contract binding and enforceable.

    The company wants both Game Changer Marketing Limited and EABL compelled to jointly and severally pay the outstanding KSh10 million. Additionally, Steizon is seeking damages for financial losses suffered and compensation for reputational harm.

    The case has drawn attention to the power imbalance between major corporations and creative professionals in Kenya’s advertising and events industry.

    Legal experts say many artists and influencers work without proper written contracts or legal representation, making them vulnerable to exploitation.

    Industry observers note that while brands readily leverage the reach and influence of content creators to drive sales and brand visibility, payment disputes remain a persistent challenge.

    In many instances, creative professionals lack the resources to pursue legal action against well-funded corporations, leading to a cycle where such practices continue unchecked.

    The lawsuit against EABL, one of Kenya’s most prominent corporate entities, signals a potential shift where artists are increasingly willing to seek legal redress for unpaid work.

    The outcome of this case could set an important precedent for how contractual obligations between brands and creative professionals are enforced in future.

    EABL and Game Changer Marketing Limited had not filed their responses to the suit at the time of going to press.

    The matter is pending before the High Court, with parties expected to appear for directions in the coming weeks.

  • KTDA Struggles To Function Without CEO As Farmers Cry Foul Over Corruption and Mismanagement

    KTDA Struggles To Function Without CEO As Farmers Cry Foul Over Corruption and Mismanagement

    Kenya’s tea sector teeters on the brink of collapse as leadership vacuum compounds allegations of director greed, nepotism and systemic looting

    The Kenya Tea Development Agency, the backbone of Kenya’s Sh215 billion tea industry, is hemorrhaging credibility as it limps through a devastating leadership crisis that has left 680,000 smallholder farmers staring at financial ruin while directors feast on millions in sitting allowances.

    At the heart of the chaos lies an uncomfortable truth: Wilson Muthaura, who has occupied the corner office at KTDA headquarters since October 2021, has been operating in a legal twilight zone since his four-year term expired in October this year.

    The KTDA board has failed to either renew his contract or appoint an acting CEO, leaving Muthaura without the legal mandate to execute critical decisions that could make or break the livelihoods of more than half a million farming families.

    The paralysis comes despite explicit instructions issued in February 2023 by Head of Public Service Felix Koskei requiring state corporation boards to appoint acting CEOs within seven days of any vacancy.

    KTDA may be a private entity, but government involvement remains deep given the tea sector’s critical role in supporting millions of livelihoods and anchoring Kenya’s export economy.

    Board members speaking on condition of anonymity now openly accuse Muthaura of illegally discharging duties.

    His continued presence at the helm, they argue, amounts to a flagrant violation of corporate governance principles that could expose the agency to legal jeopardy.

    The leadership vacuum has revealed the deep fissures that have torn KTDA’s 12-member board into two warring camps.

    One faction insists Muthaura’s contract must be renewed for continuity and to allow ongoing reforms to bear fruit.

    The rival camp demands the CEO position be advertised, pointing to what they call an untenable concentration of power in Mount Kenya hands.

    Both Muthaura and current chairman Chege Kirundi, who assumed the chairmanship in January after a boardroom coup that ousted Enos Njeru, hail from the same side of the Rift Valley.

    This has ignited fierce regional politics.

    Directors and farmers from Kericho, Bomet, Nandi and Western Kenya insist the next CEO must come from west of the Rift Valley, where frustrations over bonus disparities have reached boiling point.

    Tea farmers in these regions consistently receive lower bonuses than their counterparts in Mount Kenya, a disparity that has triggered parliamentary investigations and threats of nationwide protests.

    While the board fiddles, farmers burn.

    Government audits have exposed a sickening pattern of self-enrichment by KTDA directors who are holding between 110 and 165 meetings annually at an average of Sh50,000 per sitting.

    The mathematics is damning: directors pocket between Sh5.5 million and Sh8.25 million every year from factory coffers that should be fattening farmer bonuses instead.

    Agriculture Principal Secretary Paul Ronoh has finally pulled back the curtain on what he describes as grand theatre of greed.

    In a blistering confrontation with directors in Kericho, Ronoh revealed that nepotism has become institutionalized, with directors employing relatives and friends in schemes that have bloated factory payrolls beyond recognition.

    Every election cycle brings fresh waves of creative employment strategies as newly elected directors rush to secure positions for their kinfolk.

    The consequences for farmers have been catastrophic. While directors grow fat on allowances, tea bonuses have shrunk to insulting levels.

    Factories in Bomet recorded some of the lowest payouts in the country this year, with Mogogosiek paying Sh12 per kilogram and Kapkoros and Kapset offering Sh13 per kilogram.

    Compare this to a director attending 165 meetings who pockets Sh8.25 million annually, and you begin to understand the rage coursing through tea-growing regions.

    Ronoh has drawn a line in the sand, threatening to send the current crop of directors packing unless they immediately raise tea prices by Sh30 per kilogram.

    He has demanded an end to what he calls a system hijacked by crooks who have mastered the art of enriching themselves while farmers languish in poverty.

    Directors have fought back, accusing government officials of playing politics and making them scapegoats for policy failures.

    They point to the removal of reserve market prices at the Mombasa Tea Auction in August 2024, which saw prices plummet from $2.40 per kilogram to $1.40 per kilogram.

    KTDA chairman Kirundi has also blamed currency fluctuations, noting that the Kenyan shilling’s strengthening from Sh144 to Sh129 against the dollar meant lower returns even when international prices remained stable.

    But farmers are not buying these excuses.

    They see directors living large, holding endless meetings that serve no purpose other than generating allowances, while they receive pittances for backbreaking labor.

    The National Assembly’s Agriculture Committee has launched an inquiry into the stark bonus disparities between eastern and western tea regions, grilling industry stakeholders amid accusations of mismanagement, unfair pricing and inequitable investment across regions.

    Farmers have condemned what they describe as tribal politics and accused some government officials, particularly Ronoh, of using KTDA disputes to build momentum for personal political ambitions.

    They have threatened nationwide protests if Parliament or the Ministry continues what they term political meddling in KTDA governance.

    The governance crisis has been compounded by fresh legal troubles.

    The High Court has barred KTDA and its subsidiary Chai Trading from executing a multi-million shilling security tender pending determination of a case challenging the award process.

    Petitioners Anthony Manyara and Youth Advocacy Africa accuse KTDA of irregularly awarding the tender in violation of fairness and transparency principles.

    Meanwhile, corruption runs deeper still.

    At Chai Trading, 18 officers were recently sacked for engaging in fraudulent activities that further disadvantaged struggling farmers.

    Ronoh has vowed that similar purges will sweep through other KTDA-owned companies, suggesting the cancer of corruption has metastasized throughout the organization.

    Industry experts warn that the leadership vacuum could worsen an already volatile situation. With Muthaura legally unable to execute board decisions, critical reforms have stalled.

    The government has ordered sweeping audits of KTDA-run factories, but farmers insist such exercises must be carried out strictly within KTDA’s established systems to avoid scaring away international buyers and damaging the reputation of Kenyan tea.

    Farmers are also demanding reinstatement of Rainforest Alliance certification, seen as vital in protecting Kenya’s position in premium global markets.

    Some have called for establishment of a second tea auction in South Rift to complement Mombasa, arguing this would address price discrepancies and expand market access.

    While political tempers flare and directors trade accusations, the mathematical reality remains stark and unforgiving.

    A typical small-scale tea farmer struggles to earn even a fraction of what a single director pockets from meeting allowances.

    The small-scale grower who wakes before dawn to pluck tea leaves, who depends on bonus payments to educate children and put food on the table, has watched helplessly as the value of their labor continues to diminish while those supposed to represent their interests grow increasingly prosperous.

    Stakeholders now say only President William Ruto can restore order and prevent the crisis from inflicting long-term damage on a sector that supports millions of livelihoods.

    As KTDA struggles to function without a legally mandated chief executive, as regional and political tensions compound, and as farmers threaten industrial action, the future stability of Kenya’s most iconic cash crop hangs in the balance.

    The battle lines have been drawn. The government has issued its ultimatum.

    The directors are circling their wagons. And in the middle, as always, stand the farmers, hoping that this time someone will actually fight for them rather than fight over them.

  • Software Developer Who Accused Safaricom of Stealing His Work Loses Sh930 Million Claim After Court Says Missing Signature and Speculation Sank the Case

    Software Developer Who Accused Safaricom of Stealing His Work Loses Sh930 Million Claim After Court Says Missing Signature and Speculation Sank the Case

    Safaricom has delivered a crushing legal blow to Popote Innovations and its founder Samuel Gathungu Wanjohi after the High Court in Nairobi set aside a multimillion-shilling arbitral award that had originally ordered the telco to pay roughly Sh930 million to the software firm.

    Justice Peter Mulwa found the award was founded on an unsigned, inoperative agreement and speculative calculations of loss that could not survive public policy scrutiny.

    The decision, which quashes the Final Arbitral Award dated November 29, 2024 issued by Mr Paul Ngothi, HSC, FCIArb, effectively extinguishes an earlier ruling that had granted Popote Sh39.2 million for development costs and roughly Sh902.7 million as projected shared revenue, plus costs.

    The High Court concluded that the tribunal had exceeded its jurisdiction by treating a draft or unsigned document as a binding contract.

    Popote had argued that the parties concluded a Partnership Agreement in April 2018, that Safaricom confirmed the deal by email on May 3, 2018 and that Popote delivered a customised Popote Pay Solution on May 8, 2018.

    The firm said Safaricom abandoned the launch, later rolled out the M-Pesa Super App and M-Pesa Business App incorporating the same features, and therefore owed revenue share under the partnership.

    Safaricom responded that the 2018 arrangement never took legal effect because it lacked the telco’s signature and that it had paid Popote for development costs under a 2020 settlement.

    Justice Mulwa was unsparing in his legal analysis.

    He held that Section 32A of the Arbitration Act, which declares arbitral awards final, does not permit an award to stand when it is vitiated by jurisdictional defects or when it offends express statutory grounds for setting aside under Section 35.

    In short, party autonomy cannot rescue an award rendered outside the scope of a lawful reference to arbitration.

    The judge concluded that the award was inconsistent with the public policy of Kenya.

    The High Court also rejected the tribunal’s central factual finding that Safaricom’s M-Pesa Super App and M-Pesa Business App were similar to the envisaged Popote Pay project.

    The judge found no expert or reliable factual evidence demonstrating the required similarity, and he described the revenue figures on which the tribunal relied as speculative and hypothetical, failing basic reasonableness and evidentiary tests.

    That speculative approach to damages proved fatal to Popote’s claim.

    The backstory contains dramatic twists. After talks faltered, Safaricom paid Popote what has been reported as a goodwill or settlement payment.

    Popote maintained that this payment did not extinguish broader contractual obligations, while Safaricom maintained the September 11, 2020 settlement settled development costs and foreclosed further claims.

    Reporting and contemporaneous documents indicate that the settlement and the absence of a signed partnership agreement were central to the telco’s defence at both arbitration and in the High Court.

    Lawyers and industry observers say the ruling is a cautionary tale for Kenya’s fintech startups.

    The decision underscores that informal agreements, unsigned drafts and email exchanges are a perilous foundation for claims of intellectual property theft or revenue sharing against large, sophisticated corporates.

    The judgment is likely to push innovators to insist on watertight, signed contracts and stronger evidentiary recordkeeping before exposing ideas to potential partners.

    Popote had sought recognition and enforcement of the arbitral award in the High Court, but the judge dismissed that application and ordered that each party bear its own costs.

    With the award set aside, Popote’s billion-shilling payday has evaporated and the spotlight returns to how early-stage tech firms protect their IP, document negotiations and prove the provenance of ideas when commercial deals go south.

    This judgment will resonate across Kenya’s tech ecosystem where M-Pesa remains the dominant payments platform and disputes between large platform owners and small innovators are highly sensitive.

    For now Safaricom can count a clear legal victory, while the ruling leaves unanswered questions for entrepreneurs about how best to convert technical ingenuity into enforceable commercial rights.​​​​​​​​​​​​​​​​

  • Court Gives Credit Bank Green Light to Sell Prime Nairobi Plot Over Sh1.2bn Debt

    Court Gives Credit Bank Green Light to Sell Prime Nairobi Plot Over Sh1.2bn Debt

    Credit Bank has secured approval to auction a prime parcel of land in Nairobi’s Upper Hill after the Court of Appeal rejected a bid by the property owner to halt the sale in a long-running dispute over a multibillion-shilling debt.

    The appellate judges dismissed an application by One Upper Hill Towers Ltd, clearing the lender to proceed with selling the land that once hosted the foundation for a proposed skyscraper touted as Africa’s tallest building.

    The court found that the company and its affiliates had fallen into deep loan default and offered no evidence that the outstanding amounts were being serviced. 

    The dispute centres on loans totalling Sh1.2 billion advanced to two sister firms, Jabavu Village Ltd and Hasson Pharmaceuticals Ltd, which were secured using the Upper Hill property.

    Court filings showed the debt had ballooned to more than Sh2 billion by the time the matter reached the High Court, with dollar-denominated facilities continuing to accrue interest. 

    One Upper Hill Towers Ltd insisted that it had been regularly servicing the facilities and accused the bank of acting maliciously by initiating the forced sale without following legal procedures under the Land Act.

    The firm argued its right to redeem the land was being violated and sought to suspend the auction.

    But Credit Bank told the court it had issued all mandatory notices after persistent default.

    It said a 90-day statutory notice was sent in September 2022, followed by a 40-day notice under Section 96 of the Land Act, valuation of the property and a notification of sale.

    When the arrears were not cleared, the bank moved to recover the debt through auction. 

    The Court of Appeal agreed with the lender, noting that an injunction is an equitable remedy granted only where circumstances justify it.

    The judges said the evidence clearly showed the borrower was in default and that once a charged property is used as security, it becomes a commodity for sale if repayment terms are breached.

    The bench also held that if it is later found that any notices were irregular, the property’s value can be compensated, adding that the bank’s right to realise its security was already established.

    It concluded that the application lacked merit and dismissed it with costs. 

    The ruling ends months of legal battles that had frozen Credit Bank’s efforts to recover the debt through the high-value plot located in one of Nairobi’s most sought-after commercial districts.

    The decision now paves the way for the lender to proceed with the auction, marking another high-profile property sale tied to rising loan defaults across Kenya’s real estate sector.

  • Business Unusual: M-Pesa App Blocked in Ethiopia As Safaricom Struggles To Penetrate Its New Market Amid War With Ethio Telecom

    Business Unusual: M-Pesa App Blocked in Ethiopia As Safaricom Struggles To Penetrate Its New Market Amid War With Ethio Telecom

    ADDIS ABABA – In a move that has sent shockwaves through Ethiopia’s nascent digital economy, customers of M-PESA Ethiopia awoke on December 3 to a nightmare straight out of a corporate thriller: locked out of their own money.

    Just two days after the triumphant launch of the telco-agnostic M-PESA Lehulum app, billed as a game-changer for financial inclusion, state-owned giant Ethio Telecom slammed the digital door shut, blocking access via its mobile data networks.

    Users clutching Ethio SIM cards from Ethiopia’s dominant provider, which controls over 90 percent of the market, found themselves staring at error screens, unable to log in, transfer funds or even retrieve deposits they’d made in good faith.

    The betrayal stung deep.

    “People were suddenly locked out of their accounts. These are people who have already signed up and deposited money. They are calling us saying they are unable to access their money,” M-PESA Ethiopia lamented in a stark public statement issued on December 5, framing the disruption as a brazen assault on consumer choice and net neutrality.

    While Wi-Fi users could still navigate the app’s sleek interface for peer-to-peer transfers, bill payments and QR-code merchant scans, the mobile blockade left millions in limbo, underscoring the fragile fault lines in Africa’s second-most populous nation’s telecom turf war.

    This isn’t a mere technical glitch.

    It’s the latest salvo in a high-stakes battle royale between Kenya’s telecom titan Safaricom and Ethiopia’s entrenched incumbent, a war that has already cost the Kenyan giant hundreds of millions of dollars and threatens to turn its billion-dollar Ethiopian gamble into one of the most expensive mistakes in African telecommunications history.

    The Billion Dollar Bet Gone Wrong

    Safaricom Ethiopia, the audacious offspring of East Africa’s mobile money pioneer, shelled out a staggering 850 million dollars for its entry license in 2021, part of a one billion dollar plus investment blitz that promised to catapult the company toward 70 million group-wide subscribers by 2030.

    Visions of M-PESA revolutionizing Ethiopia’s cash-heavy economy, where over 95 percent of transactions still rely on notes and coins, danced in executives’ heads.

    Yet three years in, the dream is buckling under the weight of predatory pricing, infrastructure chokeholds and now, outright digital sabotage.

    The numbers tell a brutal story.

    Safaricom’s 2024 fiscal year epitomized the pain: 325 million dollars in losses on just 53.6 million dollars in revenue, barely covering the 66.7 million dollar annual license amortization.

    Even as recent half-year figures show a glimmer of hope, with losses halved to 103 million dollars through forex reforms and stabilizing security in Oromia and Tigray, the path to breakeven by 2027 feels like scaling Everest in flip-flops.

    The company has managed to attract only about 10 million subscribers compared to Ethio Telecom’s 83 million.

    The state enterprise registered close to 700 million dollars in revenues in fiscal year 2024, more than 12 times what Safaricom earned.

    Total capital expenditure has now exceeded 2.2 billion dollars, according to the World Bank, with little to show for it beyond mounting losses and regulatory frustration.

    A Taste Of Their Own Medicine

    Enter the irony, as sharp as a double-edged blade. Back in Kenya, Safaricom built its near-monolithic empire, commanding 90.8 percent of the mobile money market as of the first quarter of 2025, through tactics now haunting its Ethiopian foray: exclusive agent networks, on-net pricing favoritism that penalized rivals’ calls, deliberate delays in USSD access for competitors, and relentless lobbying to sidestep stringent oversight.

    Interoperability mandates arrived too late, entrenching M-PESA’s dominance before Airtel Money or Telkom Kenya could mount a credible challenge.

    By the time regulators enforced true competition, M-PESA was already too entrenched for competitors like Airtel Money or Telkom T-Kash to catch up.

    Today, the tables have flipped with ruthless efficiency.

    Ethio Telecom, bolstered by government favoritism and vertical integration into everything from digital payments to person-to-government transactions, mirrors those very plays: cheaper intra-network calls that bleed Safaricom 1.58 million dollars monthly on off-net traffic, bundled Telebirr discounts that lock in users, sky-high infrastructure leasing fees where Safaricom forks over three million dollars annually just for tower access, and crucially, this app blockade that reeks of calculated retaliation.

    Whispers on Ethiopia’s vibrant social media ecosystem amplify the outrage and schadenfreude. “Safaricom should get a taste of their own medicine,” one user quipped, nodding to Kenya’s interoperability scars, while others decry Ethio’s move as necessary protection for domestic interests.

    The World Bank Exposes The Rot

    The World Bank’s scathing October 2025 Ethiopia Telecom Market Assessment lays bare the rot, painting a picture of a liberalization facade crumbling under monopoly muscle.

    Ethio Telecom, deemed to hold significant market power in six key segments, prices voice calls below the regulator’s 0.22 birr per minute termination rate, forcing Safaricom to swallow losses on every cross-network dial.

    Data tariffs, slashed to an unsustainable 16 US cents per gigabyte post-devaluation, come with club effect perks via Telebirr, luring customers away from rivals while most African operators hover above 25 cents.

    The report accuses Ethio of predatory practices that violate fair competition principles, warning that without robust regulatory enforcement, Ethiopia’s Digital 2030 ambitions risk evaporating.

    “Practices such as predatory pricing, bundling of services, and charging elevated rates for access to essential facilities act as deterrents for new players,” the study reads, warning that these behaviors risk violating fair competition principles, especially in the absence of a robust regulatory regime.

    The assessment highlighted additional barriers to telecom investment, including limited infrastructure sharing with no independent tower companies, asymmetric licensing conditions where Safaricom paid 850 million dollars while Ethio Telecom paid nothing for comparable access, low average revenue per user, and constrained spectrum allocations.

    Perhaps most damning, the World Bank revealed that Ethio Telecom has recently blocked access to Safaricom apps, including its flagship mobile money platform M-Pesa, and alleged possible preferential arrangements for state-owned enterprises in handling government mobile money transactions.

    “These asymmetries jeopardize the long-term viability of the sector, which could unwind all the progress made to date,” the report warns ominously.

    Fighting Back

    Safaricom’s brass hasn’t minced words. CEO Wim Vanhelleputte, in a November 2024 plea that now rings prophetic, decried monopoly as a contradiction to liberalization, urging policymakers to level the field for Ethiopia’s 32 banks and fintech swarm to unleash true digital acceleration.

    “Monopoly is a contradiction to liberalization. We have 32 banks, we have multiple fintech financial institutions, all of them should be able to offer digital payments. So, we ask policymakers, if we really want to accelerate Digital Ethiopia, we should try to get all the financial institutions equal access to offer digital payments,” Vanhelleputte said.

    In its statement about the M-PESA Lehulum blockage, the company was equally forceful.

    “The restrictions limit consumer choice, undermine net neutrality, and interfere with legally approved onboarding processes under the financial institution’s license framework,” M-PESA Ethiopia stated, positioning the fight as one about fundamental rights rather than corporate rivalry.

    The World Bank echoes these concerns, calling for seismic shifts: cost-oriented infrastructure access, renegotiated interconnections, greater operational independence for Ethio Telecom, enforcement against discriminatory pricing and anti-competitive behavior, and even class licenses for low-earth orbit satellites like Starlink to pierce rural connectivity black holes. Bridging infrastructure gaps would require deploying 10,000 to 15,000 additional telecom towers, at least 15,000 4G or 5G capable radio sites, and expanding the national fiber optic backbone.

    Absent these reforms, the assessment grimly forecasts a sector unwinding all progress made, with Safaricom’s 2.2 billion dollar capital expenditure war chest yielding diminishing returns amid asymmetric spectrum squeezes and infrastructure monopolies.

    The Regulatory Roulette

    The Ethiopian government has made some positive gestures. In May 2025, the Ministry of Finance issued a directive requiring all federal public institutions to accept payments from any licensed payment service provider, a regulation aimed at promoting fair competition and strengthening consumer protection.

    However, the blocking of apps goes beyond the legal scope of that directive. It is a matter that requires intervention from both the National Bank of Ethiopia and the Ethiopian Communications Authority, neither of which has publicly commented on the M-PESA Lehulum blockage.

    Ethio Telecom, predictably stone-silent when approached for comment, has long defended its low tariffs as a public good for low-income masses. CEO Frehiwot Tamru raised the issue during the company’s annual performance report in late July, saying the operator has deliberately kept tariffs low, even at the cost of profitability.

    She underlined the contradictory pressures facing the company: once criticized for high tariffs, Ethio Telecom is now accused of keeping prices too low for rivals to compete.

    “Our pricing is designed to remain affordable for low-income customers, even if this means the company does not maximize profit,” she said, characterizing the operator as an institution of impact rather than a profit-driven business.

    Only 202 of Ethio Telecom’s 354 products and services had seen price changes since reforms began in 2018, while fixed broadband tariffs had been cut by up to 94 percent, she noted.

    Kenya’s Lesson Unlearned

    In Kenya, mobile network operators such as Telkom, Safaricom and Airtel eventually achieved interoperability across their platforms after years of regulatory pressure, enabling seamless mobile money payments to any merchant till number, regardless of operator.

    This boosted the adoption and convenience of cashless payments and is widely credited with driving Kenya’s status as a global mobile money leader, even though Safaricom’s dominance was already cemented by the time these reforms arrived.

    But in Ethiopia, such cooperation remains a distant dream.

    The contrast is stark and painful for Safaricom, which benefited enormously from being first to market in Kenya but now finds itself on the wrong side of that same dynamic in Ethiopia.

    The company’s chief technology officer James Maitai had spoken optimistically in August about targeting major growth in Ethiopia over the next five years, driven by the move to digital payments.

    “In the next five years we should be able to talk of over 70 million subscribers, because it’s a big country. Cash is over 95 percent cash usage which means there is a huge opportunity to offer M-Pesa for payment and other financial services,” he said, though the company later clarified those subscriber targets were group-wide projections, not Ethiopia-specific.

    Now, with the M-PESA Lehulum app blocked and customers unable to access their funds, those projections seem increasingly optimistic, if not outright fanciful.

    The Stakes Couldn’t Be Higher

    As regulators convene and keyboards blaze with accusations, this M-PESA melee exposes the brutal underbelly of Africa’s telecom gold rush: innovation thrives on open fields, but incumbents with state sinews fight dirty to till them alone.

    Safaricom Ethiopia, ever the diplomat, insists it’s rallying the Ethiopian Communications Authority and National Bank for swift resolution, emphasizing collaboration’s role in financial inclusion.

    The company says it is engaging regulators to restore access and framing the disruption as a matter affecting consumer choice and service continuity.

    For Safaricom, the one billion dollar Ethiopian gamble, once hailed as the last frontier in African telecommunications, now teeters on the razor’s edge of regulatory roulette.

    The Global Partnership for Ethiopia consortium, which includes Safaricom, Vodafone and Japan’s Sumitomo Corporation, bet big on Prime Minister Abiy Ahmed’s liberalization promises when they entered in 2021.

    That bet is looking increasingly precarious.

    Will Addis Ababa summon the will to enforce fair play, or will Ethio Telecom’s shadow eclipse the dawn of a truly connected Horn of Africa? For investors who have poured billions into Safaricom’s Ethiopian dream, for innovators betting on digital payments to transform the economy, and for everyday customers now locked out of their own money, the answer to that question couldn’t matter more.

    As one thing becomes crystal clear in this unfolding saga: in the brutal arena of African telecommunications, what goes around truly does come around.

    Safaricom built an empire in Kenya using tactics that crushed competition.

    Now, facing those same tactics in Ethiopia, the telecom giant is learning the hard way that being on the receiving end of monopolistic practices is a very different, and far more painful, experience.

    The stakes, for everyone involved, couldn’t be higher.

  • Panic As Payless Africa Freezes With Billions of Customers Cash After Costly Jambopay Blunder

    Panic As Payless Africa Freezes With Billions of Customers Cash After Costly Jambopay Blunder

    Nairobi, December 7, 2025 – A crisis is unfolding in Kenya’s digital payments sector as Payless Africa users find themselves locked out of an estimated Sh2.1 billion in savings following the spectacular collapse of payment processor JamboPay, leaving hundreds of thousands of Kenyans unable to access their money for nearly three months.

    The catastrophe began in September when JamboPay, the payment gateway handling Payless’s backend operations, abruptly ceased processing withdrawals.

    What started as sporadic delays has spiraled into a full-blown freeze, with the JamboPay portal now completely offline and displaying expired security certificates that bizarrely redirect to an obscure ePayments site registered under Kajiado County Government.

    Payless Africa, the savings and payments app that had attracted over 680,000 active users through aggressive influencer marketing, continues accepting deposits even as withdrawals remain paralyzed.

    The platform’s customers, ranging from small business owners to ordinary Kenyans saving for school fees, now stare helplessly at account balances they cannot touch.

    Mary Wambui, who runs an online clothing store in Eastlands, has Sh680,000 from September sales trapped in her Payless account.

    The money was meant for supplier payments and staff salaries.

    “Every week they promise disbursement next Monday, then silence. Now I can’t even access the website properly,” she said, her voice breaking with frustration.

    The situation is equally dire for Joseph Kamau, a Westlands electronics dealer owed Sh1.2 million since early September.

    “Three months without that money means we can’t pay suppliers or staff. This is not just inconvenience, it’s business collapse,” Kamau told reporters.

    In Mombasa, a single mother shared screenshots showing Sh20,000 earmarked for her child’s school fees now stuck in the system, with error messages blaming “M-Pesa intermittency” even as the platform continues processing new deposits without issue.

    JamboPay, launched in 2012 as one of Kenya’s pioneering online payment aggregators, once processed billions annually for county governments, schools, parking systems and thousands of small businesses.

    At its peak, it boasted integration with over 40 banks and was a trusted name in digital payments.

    However, industry insiders say the company has been struggling since the Central Bank of Kenya tightened Payment Service Provider licensing rules in 2023, introducing stringent capital and reporting requirements that left several smaller players unable to comply.

    Independent cybersecurity analysts who examined the [jambopay.com](http://jambopay.com) domain discovered the SSL certificate expired weeks ago and now points to an entirely different entity tied to Kajiado County Government, sparking speculation that customer funds may have been rerouted through unauthorized channels without disclosure.

    “When your payment gateway’s security certificate points to a county government server, that’s not maintenance, that’s a red flag,” said Victor Omondi, a Nairobi-based fintech expert.

    Attempts to reach JamboPay have proven futile. Listed phone lines return busy tones or automated messages stating “the subscriber cannot be reached.”

    The company’s official Twitter account last posted in July 2025, and its Facebook page has been deleted entirely.

    The only public statement came via a cached version of their website claiming “system upgrades and migration to a more secure platform” without providing any timeline.

    Payless Africa issued a statement on social media earlier this week insisting that all customer funds are “100 percent safe” and blaming JamboPay for refusing to release escrowed money during a handover to a new payment service provider.

    “You will access every coin as soon as our previous PSP releases the funds,” the company promised, though no specific timeline was provided and previous assurances of “imminent restoration” have repeatedly failed to materialize.

    The statement has done little to calm nerves.

    Users attempting to reach Payless customer care encounter automated chatbots that loop endlessly before disconnecting, or WhatsApp lines that go unanswered.

    The app itself continues displaying account balances and accepting deposits, a detail that has fueled allegations that the platform may be operating a scam.

    Consumer protection groups have demanded immediate regulatory intervention.

    “When a PSP goes dark and customer money is unaccounted for, CBK must freeze all related accounts and appoint an administrator,” said Stephen Mutoro, secretary-general of the Consumers Federation of Kenya.

    “Kenyans cannot keep losing millions every time a payment company decides to play hide-and-seek.”

    One disturbing revelation has emerged from merchant investigations: several recent bank transfers intended for JamboPay accounts were allegedly landing in personal accounts linked to former company directors, though these claims remain unverified.

    The crisis has exposed vulnerabilities in Kenya’s rapidly growing fintech sector, where aggressive marketing and promises of high returns have often outpaced robust consumer protections.

    Payless had positioned itself as a modern alternative to traditional savings methods, with viral campaigns featuring popular influencers promising seamless transactions and attractive interest rates.

    By hitching its operations to JamboPay, a company already struggling with regulatory compliance, Payless gambled with customer funds on unstable infrastructure.

    Industry analysts warn this may not be an isolated incident, with other fintech startups potentially facing similar risks if they rely on undercapitalized or non-compliant payment processors.

    Merchants who depended on JamboPay are now scrambling for alternatives, switching to competitors like Pesapal, iPay, or direct M-Pesa Paybill numbers.

    But recovering trapped funds remains the urgent priority for thousands who run payroll, pay suppliers and manage operating expenses from these collections.

    As the crisis enters its eighth week with no official communication from either JamboPay or clear intervention from the Central Bank of Kenya, frustration is boiling over into anger.

    Merchant WhatsApp groups are organizing protests, and hashtags demanding account access are trending across social media platforms.

    The Central Bank of Kenya, which oversees payment service providers, has yet to issue a public statement on the matter.

    The regulator’s silence has only deepened concerns that customers may face lengthy legal battles to recover their money, if they can recover it at all.

    For now, thousands of Kenyan entrepreneurs and savers remain locked out of their own money, staring at healthy account balances they cannot touch while a once-trusted payment brand appears to have vanished, leaving only expired certificates and unanswered questions about where billions in customer funds have gone.

  • Questions As Kenya Strangely Increases Gold Exports To Dubai Worth Over Sh43 Billion in Just 9 Months

    Questions As Kenya Strangely Increases Gold Exports To Dubai Worth Over Sh43 Billion in Just 9 Months

    Unregulated mining and cross-border trails put Kenya at centre of gold trade concerns

    Kenya has found itself at the heart of a booming but controversial gold trade that has seen exports to the United Arab Emirates surge to unprecedented levels, raising serious questions about the true origins of the precious metal passing through the country’s borders.

    In the first nine months of 2025, Kenya shipped a staggering 42.1 tonnes of gold to Dubai, more than triple the 13.8 tonnes recorded during the same period in 2024.

    The exports, valued at Sh43 billion, have catapulted the UAE past traditional markets like Uganda and India to become Kenya’s third-largest export destination, trailing only the Netherlands and Pakistan.

    The 26 percent growth in trade with the Emirates has been driven almost entirely by gold, which now accounts for nearly 68 percent of all Kenyan exports to the Gulf state.

    This represents a dramatic shift from previous years when tea, flowers and agricultural products dominated the export basket.

    But behind the glittering statistics lies a murky reality that has attracted the attention of international watchdogs, civil society groups and opposition lawmakers.

    The explosive growth in Kenya’s gold exports does not match the country’s known mining capacity, raising uncomfortable questions about whether Kenya has become a massive laundering operation for conflict gold from across East and Central Africa.

    The numbers tell a troubling story.

    While Kenya officially reported exporting just 672 kilogrammes of gold in 2023, import records from the United Arab Emirates showed 9.65 tonnes of gold declared as having originated from Kenya the same year.

    That discrepancy alone represents over 8,000 kilogrammes of gold worth approximately Sh112 billion moving through Kenya illicitly in a single year.

    International investigators have documented Kenya’s role as a critical transit hub for blood gold flowing from conflict zones in South Sudan, the Democratic Republic of Congo, Sudan and parts of Ethiopia.

    The Swiss development charity SwissAid estimates that illicit gold outflows from Kenya likely exceed two tonnes annually, yet only a fraction appears in official export records.

    The routing is well established and operates with stunning efficiency.

    Gold from mining sites scattered across Western Kenya in Migori, Kakamega, Siaya, Narok and Vihiga counties makes its way to Eastleigh in Nairobi, where a web of middlemen and shadow refineries operate beyond government oversight.

    From there, the gold is smuggled out through Jomo Kenyatta International Airport, sometimes disguised as legitimate cargo, before landing in Dubai’s sprawling refinery system where its origins are scrubbed clean.

    Harry Kimtai, Principal Secretary for the State Department for Mining, has attempted to explain the surge with references to sector reforms and soaring global gold prices, which jumped more than 50 percent in the review period.

    He points to the formalization of artisanal mining cooperatives and investor liquidation of gold holdings as drivers of the export boom.

    But even Kimtai cannot entirely sidestep the elephant in the room.

    In a carefully worded acknowledgment, he admits that Kenya is a transit country for gold from neighbouring countries and there may be instances where gold originating from neighbours is declared as originating from Kenya.

    The Global Initiative Against Transnational Organized Crime estimated in a 2023 report that between 100 and 200 kilogrammes of Congolese gold enters Kenya every month, translating to about 2.4 tonnes a year valued at 140 million US dollars.

    Traders use Nairobi and Mombasa as re-export points to Dubai, creating a pipeline that has operated for years with minimal interference.

    The involvement of high-ranking officials is an open secret within the industry.

    Experts consulted by SwissAid stressed that smuggling networks shipping gold out of the country enjoy the backing of politicians.

    In one particularly audacious incident, a consignment of over 3,000 kilogrammes of gold from the DRC worth about Sh43 billion mysteriously vanished at Jomo Kenyatta International Airport.

    Such large volumes of precious metal rarely disappear without the complicity of powerful figures with access to airport security and customs operations.

    Kenya’s artisanal mining sector provides the perfect camouflage for these smuggling operations.

    The sector employs over 250,000 miners and supports the livelihoods of approximately 800,000 to one million people.

    A 2019 baseline survey estimated annual artisanal and small-scale mining production at 6.9 tonnes, dwarfing the roughly 410 kilogrammes produced by Kenya’s two licensed industrial mines.

    Gold bars.
    Gold bars.

    Yet even that substantial artisanal output cannot account for the volumes showing up in UAE import statistics.

    Private gold refineries have proliferated in recent years, further muddying the waters between legitimate and illicit trade.

    Companies such as Afrik Gold Testers, Gulf Refinery and Emirates Refinery Ltd have sprung up in Nairobi and Western Kenya, reportedly backed by Dubai-based investors.

    These operations process gold with minimal oversight, asking few questions about provenance.

    The timing of Kenya’s gold export boom coincides suspiciously with other developments.

    In February 2025, Cabinet Secretary for Mining Hassan Joho presided over the opening of the largest gold souk in East and Central Africa at BBS Mall in Eastleigh.

    Touted as a game changer for legitimate trade, critics worry the facility could instead become another node in the smuggling network, providing additional cover for illicit gold flows.

    The controversy has not gone unnoticed by Kenya’s civic and political leaders.

    Senator Okiya Omtatah filed a petition in the High Court last month demanding full disclosure of beneficiation records, arguing that Kenya risks becoming a laundering conduit for conflict gold.

    The Law Society of Kenya has echoed these concerns, pointing to weak chain of custody mechanisms in neighbouring countries.

    The human cost of this trade extends far beyond Kenya’s borders.

    Reports have surfaced of secret gold transactions involving Sudan’s Rapid Support Forces, with Sudanese gold reportedly transported through Nairobi’s Jomo Kenyatta International Airport en route to Dubai.

    Revenue from gold smuggling fuels armed groups, finances terrorism and undermines regional stability, creating a direct link between luxury gold markets in Dubai and violence in Africa’s conflict zones.

    Government reform efforts have produced more rhetoric than results.

    Legislation was introduced in 2023 to formalize small-scale mining and reduce the illegal gold trade, but has not yet become law.

    Kenya has announced plans to establish a specialized Mining Police Unit and push for regional certification of gems and minerals.

    The Mining Ministry has also promised to roll out blockchain-based traceability software by March 2026 in partnership with Dubai Multi Commodities Centre.

    But without addressing the systemic corruption that enables smuggling at the highest levels, such measures risk becoming window dressing rather than meaningful reform.

    The discrepancies between Kenya’s official export data and trading partner import records have persisted for over a decade.

    The mismatch between 2014 and 2023 added up to over 33.5 tonnes worth about 1.68 billion US dollars, according to SwissAid’s analysis.

    As Kenya celebrates record gold export earnings and the Kenya Revenue Authority reports collections of Sh4.7 billion from gold export levies, the uncomfortable truth lurks beneath the surface.

    The country has become a crucial cog in a transnational smuggling machine that siphons mineral wealth from Africa’s poorest and most conflict-ridden regions, enriching criminal networks, corrupt officials and Dubai refineries while leaving local communities mired in poverty and violence.

    The Sh43 billion in official exports for the first nine months of 2025 may represent only a small fraction of the gold actually moving through Kenya.

    Until authorities confront the full scope of the smuggling operations and the powerful interests that protect them, Kenya’s gold boom will remain built on questionable foundations, casting a long shadow over what government officials are celebrating as an economic windfall.

    The United Arab Emirates’ President Sheikh Mohamed bin Zayed Al Nahyan arrives in Kazan, Russia, on October 23, 2024, amid concerns that a UAE conflict gold hub relies heavily on African supply chains linked to smuggling and weak oversight. REUTERS/Maxim Shemetov/Pool.
    The United Arab Emirates’ President Sheikh Mohamed bin Zayed Al Nahyan arrives in Kazan, Russia, on October 23, 2024, amid concerns that a UAE conflict gold hub relies heavily on African supply chains linked to smuggling and weak oversight. REUTERS/Maxim Shemetov/Pool.
  • Rogue Digital Lender Fined Sh250,000 for Listing Businessman as Loan Guarantor Without Consent

    Rogue Digital Lender Fined Sh250,000 for Listing Businessman as Loan Guarantor Without Consent

    Nairobi businessman Dennis Caleb Owuor has been awarded Sh250,000 in compensation after a digital lending company listed him as a loan guarantor without his knowledge, marking a major victory in the fight against predatory lending practices in Kenya.

    The Office of the Data Protection Commissioner has found Whitepath Company Limited guilty of unlawfully processing personal data and ordered the firm to pay the hefty fine to Owuor, who was subjected to harassment through multiple phone calls demanding payment for a loan he knew nothing about.

    In a determination dated February 21, 2025, Data Commissioner Immaculate Kassait ruled that the digital lender violated the Data Protection Act 2019 by processing Owuor’s personal information without a lawful basis and listing him as a guarantor without his consent.

    The case, which began when Owuor lodged a complaint on November 24, 2024, has sent shockwaves through Kenya’s digital lending sector, with consumer rights activists hailing it as a watershed moment in protecting borrowers from unscrupulous lenders.

    According to the determination, Owuor received multiple calls from agents of Whitepath Company demanding payment for a loan for which he had allegedly been listed as a guarantor.

    The bewildered businessman had no knowledge of the loan, had never agreed to guarantee it, and had not provided consent for his personal information to be used in this manner.

    The Commissioner found that the respondent’s unauthorized disclosure of the complainant’s personal data constituted a serious offense under the Act. An enforcement notice has been issued compelling Whitepath Company to erase all data relating to Owuor and furnish proof of compliance.

    The ruling invoked Article 31 of the Constitution of Kenya, which guarantees the right to privacy, and cited multiple provisions of the Data Protection Act that require explicit consent before processing personal data. The Commissioner emphasized that data controllers must operate with transparency and accountability, principles that Whitepath Company flagrantly violated.

    Legal experts say this case sets an important precedent for thousands of Kenyans who have fallen victim to similar practices by digital lenders. The ruling makes it clear that lending apps cannot simply harvest personal data from phone contacts or other sources and use it to harass individuals who never agreed to be part of a loan transaction.

    Consumer protection advocates have long complained about the aggressive tactics employed by some digital lenders, including accessing phone contacts without permission, making threatening calls to borrowers’ relatives and friends, and publicly shaming defaulters through social media.

    The Central Bank of Kenya has been under pressure to regulate the digital lending sector more strictly following numerous complaints about exorbitant interest rates, hidden charges, and invasive data collection practices. Several digital lenders have faced sanctions in recent years, but enforcement has been inconsistent.

    The ODPC determination makes it clear that victims of such practices have legal recourse. The Commissioner noted that the office was established specifically to regulate the processing of personal data, ensure compliance with data protection principles, protect individual privacy, and provide remedies when personal data is processed unlawfully.

    For those who find themselves in similar situations, the process is straightforward. Complaints can be lodged directly with the Office of the Data Protection Commissioner, providing details of the unauthorized use of personal information. The office is mandated to investigate such complaints and has the power to issue enforcement notices and award compensation.

    Industry insiders say the Sh250,000 fine, while significant for an individual case, should be high enough to serve as a deterrent. They argue that digital lenders must invest in proper data protection systems and ensure they have explicit consent before processing anyone’s personal information.

    Whitepath Company has 30 days to appeal the determination to the High Court of Kenya. The company did not respond to requests for comment by the time of publication.

    The case highlights the growing importance of data protection in Kenya’s digital economy. As more financial services move online, the risk of personal information being misused increases exponentially. The Data Protection Act provides robust safeguards, but enforcement depends on individuals being aware of their rights and willing to pursue complaints.

    Consumer rights groups are urging anyone who has been similarly harassed by loan apps to come forward and file complaints with the ODPC. They point out that many Kenyans suffer in silence, unaware that they have legal protections against such practices.

    The ruling also serves as a warning to other digital lenders operating in Kenya. The era of cavalier treatment of customer data is over. Companies that fail to comply with data protection laws face not only financial penalties but also reputational damage that could prove fatal in a competitive market.

    For Dennis Caleb Owuor, the ruling represents vindication after months of harassment. More importantly, his courage in pursuing the complaint has potentially helped thousands of other Kenyans who may find themselves in similar circumstances.

    The Data Protection Commissioner’s office has indicated it will continue to vigorously pursue cases of data misuse, sending a clear message that Kenya’s digital economy must be built on a foundation of trust and respect for individual privacy rights.

  • US Moves to Calm Kenyans’ Fears, Says Sh208 Billion Health Deal Is Not a Loan

    US Moves to Calm Kenyans’ Fears, Says Sh208 Billion Health Deal Is Not a Loan

    The United States Embassy in Nairobi has clarified that the Sh208 billion health partnership signed with Kenya is not a loan and will not burden the country with any repayment obligations.

    The reassurance comes amid heightened public debate over the scale of the funding and how it will be managed in Kenya’s expanding health sector.

    The agreement, which will run for five years, is designed to channel significant direct investment into Kenya’s public health institutions, shifting away from donor-driven models and strengthening long-term national capacity.

    US officials described the funding as a support framework intended to boost Kenya’s health infrastructure and accelerate the country’s progress toward universal health coverage.

    With questions emerging over the protections surrounding Kenyans’ medical information, the U.S. moved to assure the public that the pact does not grant access to personal health records.

    Officials emphasized that only aggregated, non-identifiable data will ever be shared, and only for purposes such as planning, monitoring, and improving health outcomes.

    “We are just putting on paper the many policies we have had for years, so any data sharing will be aggregated data, in other words, not personally identifiable data,” said Susan Burns, Head of the Diplomatic Mission at the U.S. Embassy in Kenya.

    PEPFAR Country Coordinator Brian Rettmann added that while certain laboratory samples may still require processing abroad, the partnership also aims to help Kenya build stronger local lab systems.

    “Over time, the goal is to expand Kenya’s own capacity so there is less reliance on outside facilities,” he noted.

    Kenya’s government has insisted that all data processes under the agreement must comply with the Digital Health Act, 2023 and the Data Protection Act, 2019.

    Health Cabinet Secretary Aden Duale has described health data as a “national strategic asset,” saying its use must be approved by the Digital Health Agency and the Office of the Data Protection Commissioner.

    The partnership also commits Kenya to steadily increase its own spending on the health sector, including an additional Sh850 million over five years, and to progressively take over procurement of health commodities and financing for frontline health workers.

    This shift toward domestic responsibility is part of a broader plan to reduce dependency on external programs.

    US officials underscored that the framework is designed not only to strengthen health services but also to reinforce Kenya’s institutional resilience.

    “For us, it’s not about dependency—it’s about sovereignty and self-reliance,” Burns said.

    Rettmann explained that stringent oversight mechanisms will guide the use of both countries’ funds, ensuring accountability and sustained improvements in health delivery. “There will be oversight mechanisms to ensure proper use of resources,” he said.

    Kenya is the first African country to sign a comprehensive government-to-government health financing framework with the United States.

    As implementation begins, the agreement is expected to reinforce everything from supply chains and disease surveillance to digital health systems and healthcare staffing—laying the foundation for a more robust and self-sustaining national health system.

  • Promotion of George Obell to KRA Commissioner Sparks Fear and Fury Among Staff

    Promotion of George Obell to KRA Commissioner Sparks Fear and Fury Among Staff

    A cloud of fear and resentment is sweeping through the Kenya Revenue Authority after the appointment of George Obell as Commissioner for the Micro and Small Taxpayers Department.

    Staff describe the promotion as a stunning reward for a man they accuse of running the docket like a personal fiefdom for years.

    Insiders paint a picture of a department struggling under a regime of intimidation, informal cash targets and a culture of silence.

    Several officers say they are demoralized and frightened, unable to understand how a figure dogged by internal complaints has not only survived but risen to the top.

    At the centre of the storm are what staff refer to as “quotas” which they claim have nothing to do with actual tax collection.

    Officers say they are pressured to extract money from small traders outside the official system and then judged on how well they meet these clandestine targets.

    Those who fail reportedly face punishment, from abrupt transfers to remote stations to back-to-back disciplinary charges.

    One officer who spoke in confidence to Kenya Insights described the atmosphere as suffocating.

    They said colleagues were being threatened, shuffled around and coerced into meeting expectations that had no legal or professional basis.

    According to the officer, the pressure has intensified over the years and complaints have repeatedly been buried.

    The promotion of Obell has therefore landed like a hammer blow.

    Staff say it confirms their worst fears that the system not only tolerates the alleged coercion but is willing to legitimise it by elevating the man they believe engineered it.

    They worry that with even greater power, the internal environment will become harsher and the burden on vulnerable taxpayers heavier.

    KRA has not publicly addressed the concerns or the allegations surrounding Obell’s management style.

    The authority has in the past insisted that its restructuring and promotions are based on merit, performance and alignment with its long-term revenue strategy.

    No formal communication has been issued on whether the complaints raised over the years were ever investigated.

    For staff in the Micro and Small Taxpayers Department, the silence is devastating.

    They say morale has collapsed and anxiety is rising as they brace for what the new era under Commissioner Obell may bring.

    Many are appealing for an independent probe, insisting that the public deserves to know what is happening inside the country’s tax authority.

    As the controversy grows, the promotion has triggered a rare show of unity across different ranks within KRA.

    Officers who rarely speak out are now quietly reaching out to journalists, hoping the public spotlight will force accountability.

    Whether that hope survives Obell’s ascent remains to be seen.

  • Jeune Afrique Media Group Crosses €30m Revenue Mark on Strength of Digital Push

    Jeune Afrique Media Group Crosses €30m Revenue Mark on Strength of Digital Push

    Jeune Afrique Media Group has posted its strongest financial performance in years, with annual consolidated revenue surpassing €30 million for the 2024 fiscal year, signalling that its post-pandemic overhaul is paying off.

    The Paris-based pan-African publisher said revenue rose six per cent to €30.03 million, buoyed by growth in digital products, subscriptions and its expanding events portfolio.

    The media group, founded in Tunis in 1960 and long considered a continental reference point for political and economic journalism, has been implementing a four-year transformation plan aimed at modernising its newsrooms and diversifying revenue.

    The strategy has centred on elevating editorial quality, reducing volume, strengthening fact-checking and integrating sector analysts and data journalists across its flagship titles Jeune Afrique, The Africa Report and Africa Business+. 

    The company attributes much of the momentum to surging professional demand for specialised coverage. Its B2B subscription portfolio has grown by more than 25 per cent over the past year, driven by clients in finance, law and industry.

    Africa Business+, the Group’s niche corporate intelligence publication, has recorded double-digit growth in corporate subscriptions in the first half of 2025, helped by its deep coverage of African dealmaking and sector-specific rankings that have become an industry staple. 

    Jeune Afrique Media Group now counts 32,000 digital subscribers and draws more than 3.2 million monthly online readers, nearly two-thirds of whom are senior executives in African and global corporations.

    Digital products account for 40 per cent of the Group’s total revenue, underscoring how decisively the company has shifted away from its traditional print-led model. 

    Alongside its publishing division, the Group’s events arm has become one of its strongest engines of growth.

    The Africa CEO Forum and Africa Financial Summit (AFIS) have entrenched themselves as major meeting points for business and policy leaders on the continent.

    The 2025 Africa CEO Forum held in Abidjan drew almost 3,000 executives, while AFIS convened financial sector leaders in Casablanca in November for high-level discussions on African financial sovereignty.

    The company has also rolled out a new initiative, LEAD, designed to convene emerging senior public servants around global standards in public policy. 

    Chief executive Amir Ben Yahmed said the results validate the Group’s decision to double down on its historic strengths rather than pursue aggressive expansion.

    He argued that the combination of stronger corporate subscriptions, digital revenue growth and record event attendance demonstrates that the brand remains essential reading for continental decision-makers and global actors with interests in Africa. 

    Founded more than six decades ago, Jeune Afrique Media Group describes its mission as connecting African audiences and diaspora communities with high-quality journalism and acting as a bridge between African newsrooms and the international arena.

    The company publishes in both English and French and has positioned itself as one of the continent’s most influential media and events organisations. 

  • Lobby Group Wants Sale of EAPC To Controversial Tanzanian Tycoon Stopped Says Its Threatening Kenya’s Strategic Economic Interests

    Lobby Group Wants Sale of EAPC To Controversial Tanzanian Tycoon Stopped Says Its Threatening Kenya’s Strategic Economic Interests

    A consumer rights lobby has moved to the High Court seeking to block the sale of the National Social Security Fund’s stake in East African Portland Cement to a Tanzania-linked firm, arguing that the transaction threatens Kenya’s economic sovereignty and could lead to monopolistic control of the cement sector.

    The Consumer Federation of Kenya, through secretary general Stephen Mutoro, has filed a constitutional petition challenging the lawfulness of NSSF’s planned disposal of its 27 percent shareholding in the Athi River-based manufacturer to Kalahari Cement Limited for 1.6 billion shillings.

    The lobby warns that the deal could cede control of a strategic state-linked asset to foreign interests without proper regulatory scrutiny.

    Kalahari Cement, which is controlled by Tanzanian tycoon Edhah Abdallah Munif through Mauritius-based investment vehicles, already holds a 29.2 percent stake in EAPC acquired from Swiss multinational Holcim earlier this year for 718.7 million shillings.

    With Bamburi Cement, which is fully owned by Mr Munif’s Amsons Group, holding an additional 12.5 percent of EAPC, the proposed transaction would give the Tanzanian conglomerate effective control with a combined 68.7 percent stake.

    The petition, filed at the Milimani Constitutional and Human Rights Division, names the Capital Markets Authority, Competition Authority of Kenya, NSSF, Kalahari Cement, EAPC and the Attorney General as respondents.

    Cofek accuses regulators of facilitating what it terms a secretive transaction involving pension assets without public participation or compliance with constitutional safeguards on transparency and prudent financial management.

    Mr Mutoro argues in court papers that the NSSF stake, held in trust for Kenyan workers, cannot be transferred without full transparency, due process and regulatory scrutiny.

    The group contends that regulators failed to verify whether the transaction underwent mandatory valuation reviews, capital markets disclosures or competition assessments despite repeated requests for information.

    Cofek claims that CMA and CAK allegedly withheld critical information, violating constitutional rights related to access to information and fair administrative action.

    The lobby argues that the transaction excluded public input, transparent valuations and competitive bidding, while sidelining minority shareholders’ pre-emptive rights.

    The petition raises concerns about potential market concentration in Kenya’s cement industry.

    Mr Munif’s Amsons Group completed the full acquisition of Bamburi Cement in December last year for 23.6 billion shillings , giving it significant influence in the sector.

    Cofek warns that Kalahari Cement, though locally incorporated, acts as a proxy for its Tanzanian parent, enabling what it calls regulatory circumvention and anti-competitive consolidation.

    The lobby cites Amsons Group’s aggressive regional expansion as evidence of credible monopolistic risks that could inflate cement prices and harm consumers.

    At the close of the NSSF deal, Mr Munif would directly and indirectly control the equivalent of 31 percent of the Kenyan cement sector’s production capacity , setting up intensified competition with other billionaires in the industry including Narendra Raval and the Rai family.

    Cofek is seeking conservatory orders freezing any further steps in the transaction, including sale, transfer or registration of the NSSF shares in favor of Kalahari Cement.

    The group also wants the court to compel CMA to conduct a full compliance inquiry and direct CAK to carry out merger and competition assessments to determine whether the acquisition could create dominance or monopoly risks.

    The lobby argues that once shares are transferred, the harm will be irreversible, making it impossible to recover public leverage or forestall potential anti-competitive behavior.

    The group contends that damages would not be an adequate remedy since share transfers are irreversible and once control changes hands, judicial review would be rendered meaningless.

    EAPC’s strategic value extends beyond cement production.

    The company’s Athi River plant sits on 3,000 acres of prime land, and critics have questioned whether the real value lies in real estate rather than cement manufacturing.

    The firm traces its origins to 1933 as a colonial-era venture originally owned by Blue Triangle Limited and the Kenyan government before being privatized in the 1990s.

    NSSF acquired its 27 percent stake during a 2009 recapitalization meant to safeguard workers’ interests, a mandate Cofek argues is now compromised by the proposed sale.

    The pension fund has described the disposal as part of efforts to liquidate underperforming assets, but the timing and choice of beneficiary have drawn scrutiny.

    The case highlights broader questions about cross-border investment reciprocity.

    Tanzania mandates 51 percent local ownership in mining and energy sectors, while Kenya’s foreign investment rules remain less stringent.

    Critics argue that such asymmetries disadvantage Kenyan enterprises seeking opportunities abroad while exposing critical domestic sectors to foreign control.

    The High Court has scheduled a mention for January 27, 2026, to assess respondents’ filings in response to the petition.

    Regulators are expected to demonstrate that rigorous oversight was applied to the contested deal and explain their approval processes for the transaction.

    Kalahari Cement has stated that it does not intend to make a takeover offer for EAPC or delist the company from the Nairobi Securities Exchange after completion of the proposed transaction.

    The firm has described the investment as part of a strategic long-term plan aimed at advancing national industrialization and providing capital and technical resources to transform EAPC into one of Kenya’s leading cement manufacturers.

    However, Cofek maintains that the public interest demands full disclosure and competitive processes for disposal of state-linked assets, particularly those held by pension funds on behalf of workers.

    The petition frames the sale as a test of Kenya’s governance frameworks and the effectiveness of regulatory oversight in protecting strategic economic interests.

  • Ruling Opens Floodgates for Kenyans to Sue Platinum Credit Over Unsolicited Loan Messages

    Ruling Opens Floodgates for Kenyans to Sue Platinum Credit Over Unsolicited Loan Messages

    In a landmark ruling that could trigger a tsunami of similar lawsuits, the Office of the Data Protection Commissioner has slapped Platinum Credit Limited with a Ksh400,000 penalty for bombarding a Kenyan with unwanted loan advertisements, setting a precedent that could cost the lender millions.

    Samuel Kamau Waweru’s victory against the credit firm has opened the door for potentially thousands of Kenyans who have been on the receiving end of relentless marketing calls and text messages from lending institutions that somehow acquired their phone numbers without permission.

    The determination, delivered on February 24, 2025, by Data Commissioner Immaculate Kassait, found Platinum Credit guilty of unlawfully processing Waweru’s personal data and misleading investigators during the probe, a move that has now earned the company’s directors a prosecution recommendation.

    Waweru lodged his complaint on November 27, 2024, telling the commissioner that Platinum Credit and its sales agents had been persistently sending him promotional messages and making unsolicited calls about their loan products without his knowledge or authorization.

    What he didn’t know was that his complaint would expose a web of data privacy violations that regulators say warrants criminal charges.

    During the investigation, Platinum Credit attempted to distance itself from the harassment, claiming that the person making the calls was not their agent or representative.

    But the Data Commissioner’s office dug deeper and uncovered evidence proving the caller was indeed working for the lender, a discovery that turned the case from a simple privacy violation into a potential criminal matter.

    The Commissioner found that Platinum Credit had violated fundamental principles of data protection by processing Waweru’s personal information without lawful basis, a breach of the Constitution’s guarantee of privacy and the Data Protection Act of 2019.

    Beyond ordering the hefty compensation payment, Kassait issued an enforcement notice against Platinum Credit and took the extraordinary step of recommending prosecution of the company’s directors under Section 57(3) read with Section 73 of the Act.

    The provision targets those who furnish false or misleading information to the Data Commissioner, an offense that carries a fine of up to Ksh3 million, imprisonment for up to ten years, or both.

    Legal experts say the ruling could unleash a flood of lawsuits against mobile lenders and financial institutions that have long operated in a regulatory grey area, purchasing customer databases and marketing aggressively without explicit consent.

    With millions of Kenyans receiving similar unsolicited loan offers daily, the potential liability for the industry could run into billions of shillings.

    The determination explicitly states that parties have the right to appeal to the High Court within 30 days, leaving room for Platinum Credit to challenge the decision.

    However, the Commissioner’s recommendation for criminal prosecution of the company’s directors sends a chilling message to the industry that data privacy violations will no longer be treated as mere administrative infractions.

    For Waweru, the Ksh400,000 compensation represents vindication for what many Kenyans endure silently every day.

    For Platinum Credit, it may be just the beginning of a costly reckoning with data protection laws that the industry has largely ignored since their enactment.

    The case marks one of the most significant enforcement actions by the Data Commissioner’s office since its establishment, signaling that Kenya’s data protection regime has teeth and is prepared to bite those who flout the rules.

  • Mwananchi Credit Faces Massive Lawsuits After Court Flags Predatory Lending That Left Customers’ Loans Ballooning

    Mwananchi Credit Faces Massive Lawsuits After Court Flags Predatory Lending That Left Customers’ Loans Ballooning

    Courts Open Floodgates Against Mwananchi Credit As Emboldened Borrowers Mount Massive Challenge To Predatory Lending Practices

    Mwananchi Credit Limited is staring at a litigation avalanche that could cripple its operations after the landmark Jelangant ruling opened the floodgates for hundreds of aggrieved borrowers to challenge astronomical debt inflation that has become the microfinance giant’s trademark business model.

    The July 2023 High Court judgment that slashed a Sh22 million claim back to the original Sh7 million principal has become legal dynamite in the hands of borrowers nationwide, with court filings revealing a disturbing pattern of debt manipulation that transforms manageable loans into financial nightmares through creative accounting that even judges cannot comprehend.

    Justice Kizito Magare captured the absurdity perfectly when he stated he was unable to fathom the mathematical permutations that caused a Sh2.5 million loan to balloon to Sh9.25 million despite borrowers repaying Sh3 million, declaring that if microfinance companies are allowed to operate like shylocks, the court would be missing its duty .

    That sentiment is now reverberating across Kenya’s judiciary as borrowers file case after case armed with the Jelangant precedent establishing that the in duplum rule, which caps interest at the principal amount, applies universally to all lenders regardless of licensing status.

    Justice George Khaniri demolished Mwananchi Credit’s defense that it operated outside banking regulations, holding that being a lender who earns interest subjects any entity to the rule regardless of regulatory classification .

    Court records examined by Kenya Insights reveal at least fifteen active cases against Mwananchi Credit filed in 2024 and 2025, with legal practitioners reporting consultation requests have surged over 400 percent since the Jelangant ruling became public knowledge.

    The financial implications are staggering. Conservative estimates based on documented cases suggest potential claims exceeding Sh2 billion if even a fraction of aggrieved borrowers successfully challenge their loan terms.

    The company’s vulnerability stems from a systematic business model critics characterize as designed to capture collateral rather than facilitate genuine economic activity.

    Court documents show Harrogate Limited borrowed a Sh50 million facility that ballooned to Sh177.5 million in less than two years, with borrowers claiming they only received Sh30 million in disbursements despite being charged for the full amount, and rules changing midway through repayment .

    What makes the current legal onslaught particularly threatening is the shift in judicial attitude.

    Courts increasingly view the in duplum rule as addressing a social and public interest issue where lenders target defaulters as profit-making machines, with the rule meant to protect borrowers from exorbitant interest accumulation and ensure lenders cannot use borrowers as cash cows .

    The regulatory environment is simultaneously tightening.

    Recent reforms including the Business Laws Amendment Bill of 2025 banned harassment by microfinance lenders while strengthening Central Bank oversight, responding to surging consumer complaints.

    Competition Authority data shows microfinance complaints jumped 28 percent in 2025 compared to 2024, validating borrower grievances about predatory practices.

    Multiple cases reveal Mwananchi Credit’s aggressive tactics, including one instance where lorry repossession was described by courts as gangster-like, with traders who borrowed Sh2.5 million and repaid Sh3 million still being pursued for an additional Sh6.25 million through unregistered chattel mortgages the court deemed void .

    The company has consistently denied wrongdoing, with management claiming to offer some of the lowest interest rates in the market and insisting complaints are fabrications by competitors.

    Company executives argue they became market leaders by putting clients first, with most loans repaid on time and clients returning for additional facilities . Yet the mounting adverse court findings undermine such defenses.

    Legal experts predict the litigation wave will force fundamental changes in microfinance business models. Lenders can no longer hide behind complex fee structures and creative accounting that obscure true borrowing costs.

    Courts are demanding transparency and fairness, increasingly willing to invoke equitable jurisdiction to refuse enforcement of exploitative contracts.

    For borrowers, the Jelangant precedent represents a watershed moment.

    What was once accepted as inevitable financial ruin is now being challenged successfully in courts that recognize unconscionable terms deserve no legal protection.

    The message is clear: predatory lending practices that served Mwananchi Credit’s spectacular growth are now facing legal reckoning that threatens the company’s very survival.

    The litigation floodgates have opened, and the deluge is only beginning.

    Mwananchi Credit must now defend its entire business model against borrowers armed with judicial precedent that views their exploitation as fundamentally unjust.

    Justice has arrived for Kenya’s aggrieved borrowers, delivered through courts finally willing to protect the vulnerable from financial predators masquerading as legitimate lenders.

  • Platinum Credit Ordered to Pay Sh400,000 for Sending Unsolicited Loan Texts

    Platinum Credit Ordered to Pay Sh400,000 for Sending Unsolicited Loan Texts

    Platinum Credit Kenya has been ordered to compensate a Kenyan man Sh400,000 after the data regulator found the lender unlawfully used his personal information to push loan promotions without his consent.

    The Office of the Data Protection Commissioner ruled that the firm repeatedly sent Samuel Kamau Waweru intrusive marketing texts and calls using data he never provided and without any legal basis to process.

    Kamau lodged the complaint in November 2024, accusing Platinum Credit and its agents of relentlessly pestering him with adverts for loan products.

    He insisted he had never shared his phone number with the lender and had not agreed to be contacted for promotional purposes.

    Investigations confirmed his claims and established that the lender was processing his data unlawfully in breach of the Data Protection Act.

    Platinum Credit attempted to deny responsibility by claiming that the woman who contacted Kamau was not one of its agents.

    ODPC investigators found this to be untrue and established that she was indeed working for the lender.

    The Data Commissioner found the company liable for false claims and for misleading the regulator during the investigation.

    In a determination signed on February 24, 2025, Data Commissioner Immaculate Kassait ordered Platinum Credit to pay Kamau Sh400,000 as compensation.

    The regulator also issued an enforcement notice requiring the company to comply with data protection laws and recommended prosecution of its directors for knowingly providing false information during the inquiry.

    The ruling adds to growing pressure on financial institutions and marketers that unlawfully harvest and exploit personal data to target consumers with aggressive advertising.

    The ODPC said parties have 30 days to appeal the decision at the High Court.

  • Court: Safaricom Accused of Neglecting Fraud Prevention, Leaving Millions of M-Pesa Users Exposed

    Court: Safaricom Accused of Neglecting Fraud Prevention, Leaving Millions of M-Pesa Users Exposed

    Safaricom PLC and its subsidiary, M-Pesa Holding Company Ltd, are facing a new legal challenge after a Kenyan woman sued the two firms for allegedly failing to protect customers from rising mobile money fraud and leaving victims without proper support.

    In a petition filed at the High Court, journalist Paula Rogo accuses Safaricom of negligence, weak data protection systems and failing to invest in effective fraud-prevention measures despite M-Pesa being central to Kenya’s economy.

    She is suing on her own behalf and on behalf of other M-Pesa users who have suffered similar losses.

    Rogo wants the court to declare that Safaricom violated her constitutional right to access information under Article 35 and the consumer and administrative rights of fraud victims under Articles 46 and 47.

    She argues that the company has consistently failed to safeguard customer data, respond to fraud cases in a timely manner or compensate victims, even though it markets M-Pesa as a secure service.

    Her case is based on an incident that occurred on January 3, 2024.

    Rogo received a call from an unknown number and when she called back she spoke to a man who introduced himself as Michael Kiptoo, claiming to be a Safaricom employee.

    To earn her trust, he allegedly sent her messages that appeared to come from Safaricom’s official SMS system and disclosed her M-Pesa balance, recent transactions and most contacted numbers. She believed this information could only be accessed by Safaricom staff.

    Convinced that she was speaking to a genuine employee, she followed his instructions as he claimed he was securing her account.

    He guided her through several steps using the Pochi la Biashara feature and Sh119,658 was withdrawn from her M-Pesa wallet.

    He then took an additional Sh6,000 M-Shwari loan which brought her total loss to Sh125,658.

    Throughout the call the fraudster repeatedly advised her not to share her PIN, something that reassured her he was legitimate.

    She only realised something was wrong when he became aggressive and she ended the call.

    After discovering the theft she attempted to reverse the transactions through Safaricom’s 456 reversal line but the system only supports person to person transfers.

    She then tried using Safaricom’s WhatsApp support but got no response. She called customer care nine times before finally getting through about 40 minutes after the money disappeared. By that time the funds had already been withdrawn.

    Rogo says the Safaricom representative she spoke to could not tell her whether she would be compensated, how the company intended to pursue the perpetrators or what steps it would take to prevent similar incidents.

    Nearly a year later she says Safaricom has not taken any action despite her police report and repeated follow-ups.

    She argues that this goes against Safaricom’s brand promises and ignores the increasing sophistication of mobile money fraud schemes.

    Court documents state that Safaricom is fully aware that many M-Pesa users, especially the unbanked, semi-literate and digitally inexperienced, remain extremely vulnerable.

    Even well educated customers, the petition notes, are increasingly falling victim to fraudsters who exploit system loopholes or receive help from insiders.

    Rogo accuses Safaricom of failing to invest enough resources in fraud prevention which she says leaves millions of customers exposed despite M-Pesa’s crucial role in the country’s economy.

    She is asking the High Court to order Safaricom to publish annual reports on fraud cases, losses and investigations, set up responsive and dedicated fraud reporting systems and establish a clear compensation framework for victims.

    She wants these reforms implemented within 180 days.

    She is also seeking a refund of her stolen Sh125,658 together with general damages for violation of her rights.

    The case adds to public concern over mobile money scams and could set an important precedent on corporate responsibility in Kenya’s digital financial sector.