5 February 2025

Good morning. From a data breach exposing Kenya's business elite, to healthcare hiccups and trapped miners, unpack a mix of tech troubles and human stories that are shaping our nation:

• Data breach rocks business registry
• Healthcare system faces major crisis
• Miners trapped underground in Kakamega

TECH

Massive Data Breach Hits Kenya's Business Registry

A major cybersecurity breach at Kenya's Business Registration Service (BRS) has exposed sensitive data of thousands of business owners, including prominent political figures and corporate leaders.

The breach, first detected in late January, has resulted in the unauthorized access of personal information including ID numbers, phone contacts, and residential addresses of registered business owners. More concerning is the exposure of confidential company information, which is now reportedly being offered for sale on the dark web.

Among those affected are businesses linked to President William Ruto and former President Uhuru Kenyatta's families, revealing previously private details about their business holdings and shareholding structures. The scale of the breach has raised serious concerns about data protection in government institutions.

The source of the breach has been traced to a Moldovan cybersecurity firm that had been granted access to BRS systems for security assessment purposes. The unauthorized data access reportedly occurred during system vulnerability testing, though the exact circumstances remain under investigation.

In response to the incident, the Business Registration Service has acknowledged the breach and launched a comprehensive investigation. The agency is working with cybersecurity experts to enhance system security and has issued guidelines to help business owners protect their information.

Key protective measures recommended by BRS include:

• Regular monitoring of business registration details
• Immediate reporting of any suspicious activities
• Implementation of additional security measures for business accounts

This incident marks one of the largest data breaches in Kenya's corporate sector, highlighting the growing need for robust cybersecurity measures in government institutions. The BRS has promised to provide regular updates as the investigation progresses.

HEADLINES

• ⛽ Shell's V-Power fuel quality is under scrutiny in Kenya. Vivo Energy Kenya has launched an internal investigation following customer complaints about their premium fuel product, while maintaining that their fuel meets required standards. The company has invited regulatory authorities to conduct independent testing and has assured customers of continued quality monitoring across all stations.
• 🏥 Kenyan civil servants face a healthcare crisis as hospitals begin turning them away. The situation stems from payment disputes between healthcare facilities and the State Health Assurance (SHA), affecting teachers and police officers nationwide. Interior CS Kindiki has announced a review of the SHA payment system, while MPs are demanding a reassessment of the mandatory 2.75% SHIF deduction amid complaints of poor service delivery. The government is currently reviewing the means testing mechanism to create a more equitable healthcare system.
• 💼 Treasury CS Mbadi strongly refutes claims of over-taxation in Kenya. Speaking on recent tax measures including SHA and Housing Levy, the CS maintains these are strategic investments in social welfare, not burdensome taxes. Mbadi breaks down the daily tax burden to Ksh 85, comparing it favorably with regional standards, while emphasizing how the revenue directly supports essential services and development goals. The CS argues that opposition figures are misrepresenting taxation data, pointing to comparative analyses with other African economies that support his position.
• 💰 Kenya Pipeline Company remits Sh7 billion in dividends to the National Treasury. The state corporation achieved this through improved operational efficiency, reducing pipeline losses to 0.06% compared to the industry standard of 0.25%. After recording a 20% increase in profit before tax to Sh10.05 billion, KPC is diversifying its portfolio with fiber optic investments, LPG facilities, and infrastructure upgrades while aiming for Sh150 billion in annual turnover by 20255.

EDUCATION

HELB Restores Old Funding Model After Nationwide Protests

In a major win for Kenyan university students, the Higher Education Loans Board (HELB) has reversed its controversial funding changes and restored its original model following protests.

The decision comes after weeks of mounting pressure, culminating in dramatic scenes at Anniversary Towers where students from various universities, led by the University of Nairobi, stormed HELB offices demanding immediate action on delayed loan disbursements.

Under the reinstated model, first and second-year students who joined universities in September 2023 will receive full funding as per previous arrangements. This marks a complete departure from recent policy changes that had left many students struggling to finance their education.

The protests led to a temporary closure of HELB offices and brought student grievances into sharp focus. Law enforcement had to be deployed to maintain order, underscoring the severity of student frustration with the situation.

The reversal comes at a critical time when HELB faces unprecedented challenges. A record number of students qualified for university admission this year, creating what officials describe as a "funding headache" for the organization.

Key changes include:

• Immediate reinstatement of the previous funding structure
• Commitment to timely disbursement of funds
• Review of the application process for affected students

The government's U-turn on HELB funding policies represents a significant shift in Kenya's higher education landscape, demonstrating the power of collective student action in shaping educational policy.

For students concerned about their funding status, HELB has promised to release detailed guidelines on the implementation process in the coming days.

ACROSS THE COUNTY

• KAKAMEGA: Twelve miners are trapped underground after a devastating gold mine collapse in Kakamega County. Emergency response teams are currently conducting search and rescue operations at the artisanal mining site where multiple casualties are feared. The cave-in has prompted a swift response from local authorities as they race against time to reach the trapped miners. This incident highlights ongoing safety concerns in small-scale mining operations across the region.
• MANDERA: Five assistant chiefs have been abducted by suspected Al-Shabaab militants near the Kenya-Somalia border. The incident occurred during a routine security meeting in Mandera East sub-county, after which the officials were taken across the border into Somalia. Government authorities have confirmed the chiefs are alive and plan to engage council of elders in negotiations for their release, while local security forces coordinate search operations. Local community leaders have also been brought in to assist with rescue efforts.
• NAIROBI: The capital city is set to get two modern markets worth Sh750 million. The new facilities, to be constructed in Mwariro and Karandini areas over the next 12 months, will provide organized trading spaces for over 3,000 small-scale traders. These state-funded markets will feature modern amenities and enhanced security systems, forming part of a broader government strategy to decongest the city center while improving trading conditions for informal vendors.
• NYERI: Interior CS Kithure Kindiki has announced a Sh17 billion allocation for road construction in Nyeri County. The funds will specifically target stalled road projects across the region as part of the government's broader infrastructure development plan. Speaking during the announcement, Kindiki assured Kenyans of the administration's commitment to completing all pending road projects nationwide, emphasizing accountability in infrastructure development and improved connectivity in the region.
• NAKURU: All 47 Senators are set to meet in a crucial three-day retreat. The lawmakers will converge in Nakuru town to deliberate on two major agenda items - the new revenue sharing formula and implementation of the Taifa Care health programme. Key committees will present their reports during the sessions, which will be held at a local hotel, as the Senate seeks to chart the way forward on these critical national programs.

One-Liners

• The Independent Electoral and Boundaries Commission (IEBC) Selection Panel has opened a 15-day application window for vacant commissioner positions (5 February 2025)
• The Technical University of Kenya (TUK) suspended operations as academic staff and employees protest over unpaid salaries spanning several months (4 February 2025)
• Woman humiliated during Pastor Ng'ang'a's church service secures affordable housing unit through government intervention (4 February 2025)
• Kenya Power shares hit a five-year high of KES 2.44 as the utility company announced its first interim dividend payment of KES 0.20 per share since 2015, totaling KES 389.9 million (4 February 2024)
• Martha Karua's Narc Kenya party rebrands to People's Liberation Party as it positions itself for the 2027 general elections (4 February 2025)