19 February 2025

Good morning. From digital transformations to political crossroads, today's edition brings you stories of change and innovation across Kenya. While Raila Odinga processes a significant setback in his AU Commission chairperson bid, our counties are buzzing with technological advancements and healthcare improvements.

Let’s dive in.

FINANCE

KUSCCO Scandal: Sh13.3bn Missing as Top Officials Face Criminal Charges

In a shocking revelation that has rocked Kenya's cooperative sector, the Kenya Union of Savings and Credit Co-operatives (KUSCCO) is at the center of a Sh13.3 billion scandal. Several top officials now face criminal charges in what could be the largest financial scandal in the country's SACCO industry.

The investigation has led to multiple arrests, with four officials currently in custody as investigations continue. Former CEO George Ototo, who was initially wanted by authorities, has surrendered to face the allegations of financial misconduct.

The scandal's impact extends beyond KUSCCO itself, with numerous SACCOs across the country bracing for potential losses. Police have taken over the investigation, signaling the severity of the case and its implications for Kenya's cooperative movement.

Key developments in the case include:

• Five individuals charged with stealing Sh83 million have been released on Sh14.5 million bail
• The former CEO is seeking Sh210 million in retirement benefits despite the ongoing fraud investigation
• Authorities are pursuing asset seizure as part of their recovery efforts

The case has raised serious concerns about oversight in the sector and the need for stricter financial controls. As investigations continue, thousands of members across Kenya anxiously await answers about the security of their investments.

HEADLINES

⚡ Kenya hits a new record in electricity demand. The national grid recorded an unprecedented peak of 2,316 MW on February 12, 2025, surpassing January's peak demand by 12 MW. This surge follows the connection of over 198,535 new customers in six months and significant investments in grid stabilization, including the completion of the Kimuka substation. The growth reflects Kenya's expanding energy infrastructure, with plans to connect an additional 289,000 customers through ongoing Last Mile initiatives.

📱 Airtel Money is shaking up Kenya's mobile money scene with a bold new move. The telco is now offering 100% refund of bank transfer fees as airtime under its 'Rudishiwa Transaction Fee' program, while simultaneously expanding its mobile money and network infrastructure. With market share climbing to 7.6% and plans to boost its agent network to 105,000 by March 2025, Airtel is making aggressive moves to challenge M-Pesa's dominance in the digital payments space.

🏗️ NEMA tightens its grip on sand harvesting with hefty fines and new regulations. The National Environment Management Authority has introduced strict measures requiring sand transporters to obtain permits and prohibiting night operations, with violators facing fines of up to Sh4 million. The move aims to curb illegal sand harvesting and protect the environment, though it may lead to increased construction costs for homeowners.

⚖️ National Assembly Clerk has rejected a motion to censure Speaker Moses Wetang'ula. The Grassroot Oversight Initiative's attempt to initiate a censure motion against the Speaker of the National Assembly was dismissed, affirming the parliamentary leadership's stability. The decision effectively ends the lobby group's push to challenge the Speaker's position.

ELECTIONS

After AU Loss, Raila Odinga Faces a Crossroads in Kenyan Politics

Raila Odinga's bid for the African Union Commission (AUC) chairmanship has ended in disappointment, marking a significant moment in Kenyan politics. The veteran opposition leader's defeat in Addis Ababa has sparked intense speculation about his next moves and the future of Kenya's political landscape.

The loss comes at a crucial time when Kenya's political dynamics are shifting. Despite the government's robust campaign to support his candidacy, Odinga failed to secure enough votes from AU member states, raising questions about Kenya's diplomatic influence in the region.

Political analysts are now focusing on two potential scenarios: Odinga could either strengthen his opposition role or, as some MPs suggest, forge a working relationship with President Ruto's administration. The latter would represent a dramatic shift in Kenya's political alignment.

The aftermath of the AUC election has revealed interesting reactions across the political spectrum:

• Prime Cabinet Secretary Musalia Mudavadi has publicly stated Kenya's acceptance of the election outcome, demonstrating diplomatic maturity
• Several MPs, including Deputy President Kindiki, have praised Odinga's effort despite the loss
• ODM party members are watching closely for signals about their leader's next political move

The failed AUC bid might represent more than just a personal setback for Odinga. It could potentially reshape Kenya's domestic politics, especially regarding the relationship between the government and opposition.

Questions remain about the effectiveness of Kenya's campaign strategy and what this means for future diplomatic endeavors. The situation highlights the complex interplay between domestic politics and international diplomacy in African affairs.

As the dust settles in Addis Ababa, all eyes are on Odinga's next move. His decision could have far-reaching implications for Kenya's political stability and the future of opposition politics in the country.

ACROSS THE COUNTY

• NAIROBI — Over 250 African city leaders gather in Nairobi to shape a greener urban future. The Green & Resilient UrbanShift Africa Forum, funded by the Global Environment Facility and hosted by C40 Cities, brings together mayors, policymakers, and investors from across the continent. The five-day event focuses on boosting climate resilience and sustainable urban investment, with participants set to endorse a new roadmap for sustainable finance action in Global South cities.
• NAKURU — A new Sh25 million maternity unit is transforming healthcare delivery in Gilgil sub-county. The 24-bed facility, established through a partnership between the County Government, World Vision, and Shionogi and Company Limited, will serve approximately 1,849 women who receive antenatal services annually in Elementaita Ward. The unit offers comprehensive maternal care services including prenatal care, skilled birth attendance, and mental health support, significantly reducing the need for referrals to higher-level facilities.
• WEST POKOT — A new digital Centre of Excellence is set to transform youth employment opportunities in West Pokot. Governor Simon Kachapin is championing the establishment of the facility, which has been relocated to Tartar area after initial logistical challenges at Bendera. The project is part of a nationwide initiative to create 1,450 digital units, with the first phase targeting 50 centres by the end of the financial year. The initiative promises to boost education, healthcare, and agriculture through enhanced digital connectivity, with contractors emphasizing local cooperation and materials.
• SIAYA — Lake Victoria's fishing industry gets a technological makeover. Fishermen at Obenge Beach have transitioned from traditional canoes to engine boats and replaced paraffin lamps with electric alternatives, marking a significant shift in fishing practices. The Sh2.5 billion Kabonyo Kanyagwal Fisheries Centre project further amplifies this transformation with modern hatcheries producing 7 million fingerlings quarterly, while addressing security concerns through county-provided patrol boats and life jackets. The comprehensive initiative includes cold storage facilities, processing units, and support for women in the sector, positioning Siaya County as a pioneer in blue economy development.

NEWS

• Kilimo House has doubled miraa prices in a move to expand exports, providing a welcome boost for miraa farmers as the government seeks to tap into new international markets. (Source)
• Kenyan macadamia farmers are protesting stalled export licenses, urging President Ruto's intervention to resolve the crisis affecting their livelihoods. (Source)
• Only a third of Kenyan secondary schools have computer labs, highlighting a critical digital divide in our education system that leaves most students unprepared for today's tech-driven job market. (Source)
• The World Bank has approved funding for the construction of a 740km road linking Isiolo and Mandera, marking a significant step towards improving infrastructure in Kenya's northern frontier. (Source)
• Kenya has secured a one-year seat on the Financial Action Task Force (FATF), joining global efforts to combat money laundering and terrorist financing as the country works to exit the watchdog's grey list. (Source)