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Fake goods alert as 9.6m KRA revenue stamps stolen

KRA lost 9.7 million excise stamps, raising concerns over tax evasion and counterfeit goods like alcohol and cosmetics. An audit found gaps in KRA’s records, lacking details on the type, timing, and circumstances of the loss.

• The missing stamps could fuel counterfeit products and tax fraud.
• The audit highlighted weaknesses in KRA’s internal controls.

How a Dead Man Signed Off Kuscco Accounts in a Sh13.3bn Heist

A PwC forensic audit revealed that Kuscco executives forged the signature of deceased auditor Alfred Basweti to approve falsified financial statements, jeopardizing Sh13.3 billion of depositors' funds. The audit exposed fraud, bribery, and conflicts of interest, leading to Kuscco’s insolvency of Sh12.5 billion.

• The forgery was discovered due to discrepancies in the auditor’s signatures.
• Eight executives, including top managers, were implicated in the fraud.

Safaricom fights Sh944m award to software developer in M-Pesa app row

Safaricom is challenging a Sh944.5 million award to Popote Innovations, which claims the telecom copied features from a proposed M-Pesa partnership. Safaricom argues the deal was never formalized and costs were already covered.

• Popote alleges Safaricom replicated its M-Pesa app features without a formal agreement.
• Safaricom disputes the award, stating prior compensation was made.

Easy Coach founder Azym Dossa, who started lounges at booking offices, steps down as CEO

Azym Dossa, 76, stepped down as Easy Coach CEO after 21 years, citing health issues. He will continue offering guidance to the company.

• Dossa grew Easy Coach from one route to over 800 buses with a focus on discipline.
• His resignation highlights the challenge of balancing leadership with health concerns.

Pension schemes’ returns jump to 28 percent in 2024

Kenyan pension funds posted a 28.8% return in 2024, the highest since 2012. Equities led with a 51.6% gain, driven by stocks like Safaricom and KCB, while fixed income returned 26.8%. Offshore investments lagged at -2%.

• Strong equities and fixed income drove record pension returns.
• Offshore investments underperformed, highlighting diversification risks.

Pensioners' dependents expose the burden of Kenya's unemployed youth

An RBA survey shows that 83.2% of Kenyan pensioners support dependents, mostly unemployed youths. Many retirees use their pension to pay school fees, adding financial strain.

• High youth unemployment forces retirees to support adult dependents.
• Pension funds are often spent on education, increasing retirees' financial burden.

Other Curated Reads:

CMA curbs speculative trading in troubled firms:

• CMA cut the trading limit for troubled NSE firms to 5% and introduced a Recovery Board. Firms have two years to recover or face delisting, curbing speculation and ensuring oversight.

Containers maker Metal Cans takes over assets of rival Nampak Kenya:

• Metal Cans & Closures Kenya is acquiring Nampak Kenya’s assets with CAK approval, expanding into food cans and crown caps. With only 4% market share, the deal won’t affect competition or jobs.

“Ruto’s removal of vetting for ID issuance a step toward equality”

• Ruto’s ID vetting removal boosts inclusivity, removes barriers to services, and reinforces equality.

Co-op Bank cuts its base lending rate to 14.5pc:

• Co-op Bank cut its lending rate to 14.5%, boosting credit access for MSMEs and aligning with CBK policy.

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