10 March 2025
Good morning. Kenya's financial landscape and political scene are undergoing major shifts. In today's newsletter, we explore the transformative changes reshaping our nation—from pioneering mobile money achievements to significant policy developments.
Here are the stories driving Monday's conversations:
- M-PESA marked its 18th year as a Kenyan success story, now handling an impressive 100 million daily transactions
- President Ruto and Raila Odinga's historic handshake points to a new political direction
- Kenyan women emerge as entrepreneurial leaders, with 93% exploring business opportunities—far exceeding the regional average
POLITICS
Breaking Down the Ruto-Raila Handshake
President William Ruto and opposition leader Raila Odinga signed a groundbreaking coalition agreement at the Kenyatta International Convention Centre (KICC) in Nairobi. The deal marks a significant shift in Kenya's political landscape, bringing together the ruling United Democratic Alliance (UDA) and the Orange Democratic Movement (ODM).
The agreement, formally known as the Kenya Kwanza-ODM Framework Agreement, outlines several key commitments. These include implementing the National Dialogue Committee (NADCO) report, addressing youth unemployment, and ensuring the two-thirds gender rule is achieved. The pact also emphasizes protecting the rule of law, constitutionalism, and devolution.
As part of the deal, ODM has secured significant positions in Parliament's power structure. The Budget and Appropriation Committee will be chaired by Samuel Atandi, while other key committees such as Health and Labour will be led by ODM representatives. This power-sharing arrangement demonstrates the comprehensive nature of the coalition agreement.
The partnership emerged following extensive consultations between both parties, with meetings held at various locations including Mombasa State House. ODM National Chairperson Gladys Wanga has welcomed the partnership, emphasizing its focus on national interest and unity.
HEADLINES
💰 M-PESA marks 18 years of transforming Kenya's financial landscape. The mobile money service, now processing nearly 100 million transactions daily, has grown from a local solution to a global powerhouse with 70 million customers across 170 countries. Through innovations like the recently launched Ziidi Money Market Fund, which has attracted over Sh6 billion in investments, M-PESA continues to drive financial inclusion while maintaining its dominant 93.4% market share in Kenya.
👩💼 Kenyan women are leading a business revolution. A new Mastercard study reveals that 93% of women in Kenya are considering entrepreneurship, surpassing the regional average of 51%. These ambitious women are primarily drawn to agriculture, business services, and food sectors, with three-quarters already engaged in side hustles. While funding remains a key challenge, 65% are embracing AI tools to boost efficiency in their ventures.
💰 Public schools are set to receive Sh14 billion in capitation funds this week. Education Cabinet Secretary Julius Ogamba announced the disbursement, which represents half of the Sh28 billion allocated for first term, with schools directed not to send learners home over fee arrears. The government allocates Sh1,420 per primary school learner, Sh15,042 for junior secondary, and Sh22,244 for secondary schools, though lawmakers note this falls short of ideal funding requirements.
☕ Deputy President Kindiki takes charge of coffee sector reforms. The government is authenticating debts owed to coffee cooperatives while implementing comprehensive reforms aimed at doubling or tripling growth by 2027. Under Kindiki's leadership, farmers are projected to earn Sh110 per kg this year - nearly double compared to 2022 - thanks to interventions including a Guaranteed Minimum Returns program of Sh100 per kg and improved access to quality seedlings and fertilizers.
💰 Sh268 billion rejected in pending bills claims. The Pending Bills Verification Committee has cleared only Sh206 billion for payment out of Sh664 billion under review, with sectors like energy, health, education, and national security showing the highest outstanding bills. The committee, established in September 2023, continues to analyze the remaining 52% of claims while working to identify fraudulent submissions and prevent future accumulation of pending bills.
💸 President Ruto's Sh20 million pledge to Jesus Winner Ministry sparks nationwide controversy. The church's Pastor Edward Mwai faced intense backlash, receiving over 5,000 hostile messages that forced him to change phone numbers, while protestors organize under #OccupyJesusWinner. The church maintains its self-sufficiency, having raised Sh450 million from members for its three-acre property, and clarifies that Ruto's promised donation - part of a larger Sh100 million mobilization effort - hasn't been received yet.
TECHNOLOGY
Kenya Probes TikTok Over Sexual Content Involving Minors
The Communications Authority of Kenya (CA) has launched a formal investigation into TikTok following allegations that the platform profits from sexual content involving minors. This probe comes after a BBC investigation revealed disturbing practices on the social media platform.
According to reports, TikTok takes earnings from livestream transactions, with some of these streams featuring teenagers as young as 15 years old. Content moderators have indicated that about 80% of flagged livestreams were sexual in nature.
The CA has issued five key demands to TikTok, including:
- Immediate removal of all sexual content involving minors
- Enhancement of content moderation systems
- Establishment of a local office in Kenya
- Explanation of content moderation failures
- Implementation of public education on Child Online Protection
The situation has become more pressing as digital "pimps" are reportedly hosting livestreams and taking substantial cuts of earnings. Child protection charities have raised alarms about children as young as nine being involved in these activities.
ACROSS THE COUNTY
- MIGORI — First Lady Rachel Ruto launches a school milk program targeting 11 schools across five counties. The National School Milk Pilot Programme, launched in Migori County, aims to enhance nutrition by providing two packets of milk per week to school-going children. This initiative, which partners with 4K Clubs and the Ministry of Agriculture, is part of a broader strategy to feed 10 million children by 2030, up from the current 2.5 million beneficiaries. The program also promotes sustainable food security through school kitchen and fruit gardens.
- NAIROBI — Handcart and trolley pushers in Nairobi will soon be required to have insurance cover and number plates. The proposed legislation, introduced by Kileleshwa MCA Robert Alai, aims to regulate the city's 2,608 trolleys and 371 carts that form part of Nairobi's non-motorised transport system. The new regulations, which align with Governor Johnson Sakaja's vision, will mandate reflective number plates and jackets, with operators given a six-month grace period to comply.
- KWALE — A Sh252 million fish landing site is set to transform artisanal fishing in Kwale County. The project, launched by Cabinet Secretary Hassan Joho and funded by KEMFSED, features modern facilities including ice-making plants and improved sanitation. Running from 2020 to 2025, the initiative aims to boost local livelihoods while promoting women and youth participation in fishing value chains. The development also includes a new rescue boat to enhance safety for the fishing community.
- KIBWEZI WEST — The National Irrigation Authority has completed four dams worth Sh120 million in Kibwezi West. The dams - Kwa Matilu, Mbui Nzau, Syumile, and Sekeleni - each have a capacity of 50 million litres, boosting water access and food security in the region. NIA Chairperson Engineer Gilbert Maluki announced that eight more dams are in the pipeline, while MP Mwengi Mutuse emphasized the need to protect these vital infrastructure projects from vandalism.
- TAITA TAVETA — Only three out of 161 registered mining sites in Taita Taveta County have valid licenses. A staggering 158 companies continue to operate illegally across the region's mining sites, which were registered between 1997 and 2020. The county faces additional challenges with missing mineral quantity reports, undisclosed revenues, and absent community development agreements. Meanwhile, the National Assembly is considering new regulations, including the Gold Processing Bill sponsored by MP Bernard Shinali, to enhance oversight in the sector.
ONE-LINERS
- The government has announced plans to repatriate foreign street families and assist local ones in returning to their communities, with a comprehensive census and rehabilitation program to be implemented through inter-ministerial collaboration. (Source)
- The government's planned sale of Hilton and InterContinental hotels has hit a snag after potential buyers failed to meet the reserve price set for the prime properties. (Source)