Hello, Jason here. Welcome to today’s edition of The Business Roundup, where we bring you the latest international and local economic updates from the business world. This edition covers news on the government’s announcement of its intention to write off Ksh6 billion in debt owed to it by hustler fund defaulters.
This week, Micro, Small and Medium Enterprises Development Principal Secretary Susan Mang’eni, while appearing before the National Assembly Committee on Industry, Trade and Cooperatives, stated that the government will seek to write off the bad loans borrowed by Kenyans in 2022.
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Hustler fund loans
According to PS Mang’eni, the Hustler loan fund incurred a debt of Ksh6 billion from 10 million Kenyans who borrowed money at the time of its launch in 2022.
She, however, said that the borrowers have failed to pay despite borrowing the cash more than two years ago.
“They never repaid, and that is what we will be seeking to write off, so the portfolio that is totally at risk and is in default is about between Ksh.5 billion and Ksh6 billion,” the PS said.
Mang’eni further said that so far, the government has disbursed Ksh65.7 billion, with the hustler fund repayments standing at Ksh53.2 billion.
While defending the performance of hustler fund, the PS indicated that 9 million borrowers were actively borrowing and urged MPs to approve a Ksh5 billion injection into the fund this financial year.
Equity Bank mass firings
In other news, Equity Bank this week fired about 200 employees in Kenya across its branch network after internal audits uncovered a sophisticated payroll and M-Pesa scam that led to the loss of Ksh1.5 billion.
The dismissed workers, spread across the bank’s head office and branches nationwide, include both senior managers and junior staff members.
According to the lender, the dismissals followed months of investigations launched in December 2024.
Staff were required to account for any irregular income into their bank or M-Pesa accounts for the past two years, with face-to-face disciplinary hearings held for those with unexplained deposits.
Further, Equity revealed that the employees used stolen IT credentials belonging to a manager in the Group Processing Centre which were used to authorize over 40 high-value transactions that funneled nearly Ksh1.5 billion to external bank accounts.
Some of the transactions flagged included money transfers tied to clients, entities, or fellow employees, a violation of Equity’s internal ethics code.
Consequently, staff received termination letters citing gross misconduct, conflict of interest, and ethical breaches.
Additionally, employees were offered salaries of up to the last day they worked, pay for unused leave, and notice pay in line with the bank’s termination policy.
Equity Group CEO James Mwangi stated that the sacking was not a redundancy plan but a necessary cleanup to uphold the bank’s currency of trust.
What James Mwangi said:
“We have pushed the brand. It is now Africa’s top-rated financial brand and second globally. It will never survive if its people contradict it.”
KCB dividends
KCB Group Plc shareholders have approved Ksh9.6 billion total dividends payout for the 2024 financial year.
The shareholders approved a final dividend of Ksh1.50 per share at the Annual General Meeting in Nairobi on Thursday, as recommended by the Board.
The dividend will be paid on or about May 23, 2025, net of withholding tax to the shareholders on the members’ register at the close of business on April 3, 2025.
This comes after KCB posted a profit after tax of Ksh16.53 billion, marginally higher than the Ksh16.48 billion recorded in Q1 2024.
Total revenue during the period rose by 2% to Ksh49.4 billion while the Group’s balance sheet closed at Ksh2.03 trillion, up from Ksh1.99 trillion.
The contribution of subsidiaries outside KCB Bank Kenya to profit before tax rose to 32%, reflecting the bank’s regional expansion efforts.
Operating costs rose by 7.8% to Ksh22.7 billion due to staff expenses and investments in technology. Provisions for expected credit losses fell by 11.3%, aided by strengthened collateral and rehabilitation of non-performing loans (NPLs).
Other top Kenyan banks listed on the Nairobi Securities Exchange (NSE) have also released their results for the first quarter of the 2025 Financial Year (FY), providing insights into their profitability, asset growth, loan performance, and customer deposits.
Bamburi Cement shares suspended
NSE this week suspended trading of Bamburi Cement Plc shares, effective May 21, 2025, following the acquisition of 96.54% of the company’s issued ordinary shares.
According to the authority, the suspension will remain in force for 60 days, or for any other period that shall be determined.
“The offeror has attained the threshold of acceptances, which entitles them to undertake compulsory acquisition of the remaining shareholders. Trading has been suspended to facilitate finalization of the transfer of shares following the squeeze-out process,” read part of the statement.
The suspension was issued under Regulation 73(2) (b) of the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
Further, NSE urged shareholders, investors and the general public to take note of the suspension.
ALSO BIG THIS WEEK
- Head of Public Service Felix Koskei issued directives to CEOs in a bid to crack down on corruption
- The Northern Kenya Rangelands Carbon Project, coordinated by the conservation group Northern Rangelands Trust (NRT) and backed by corporate giants like Netflix and Meta suspended from selling new credits pending the outcome a review.
- Kiambu County Government on May 17, 2025, issued a 30-day eviction notice to traders ahead of a planned development project.
- KUSCCO announced a major public auction targeting over 50 properties nationwide.
- The State Department for Diaspora Affairs, through the Diaspora Placement Agency (DPA), announced job opportunities for degree holders in the Caribbean, under the Kazi Majuu program.
- Communications firm Zuku and Boma Yangu partnered to launch affordable high-speed internet service priced at Ksh10 per day (Ksh300 per month).
- NCBA Group announced the appointment of James Gossip as its Managing Director.
- Kenya Airways PLC announced the retirement of Michael Joseph, one of Kenya’s most influential business leaders, as its board chairman marking the end of an 8-year leadership journey.
- Three former senior officials at Invesco Assurance Company Limited and four Compliant Insurance Agency directors arraigned over Ksh309 million fraud.
Currency Trends
According to the latest Central Bank of Kenya (CBK) data, the Kenyan Shilling exchanged at Ksh129.2653 per US dollar on May 12, 2025.
Against other major currencies, the Shilling traded at:
- Sterling Pound – Ksh171.7548
- Euro – Ksh145.1585
- South African Rand – 7.1001
- Japanese Yen (100 units) – Ksh88.6016
Against regional currencies, the Shilling exchanged at:
- Ugandan Shilling – Ksh28.3139
- Tanzanian Shilling – Ksh20.8679
- Rwandan Franc – Ksh11.0238
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