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Sacco savers face dividend cuts on Kuscco fraud losses

The State Department for Cooperatives has ordered 247 saccos to cut dividends and set aside funds to cover losses from Kuscco’s Sh13.3B fraud, which left it insolvent and put Sh24.8B in deposits at risk.

• Financial Safeguards: Saccos urged to set aside funds to protect deposits at risk.
• Governance Gaps: Kuscco’s collapse exposes oversight failures in cooperative finance.

?Only 22pc of Kenyan homes have insurance as tough times bite

A recent survey by the Central Bank of Kenya, FSD Kenya, and the Kenya National Bureau of Statistics reveals that only 22% of Kenyan households have insurance coverage, excluding the National Hospital Insurance Fund (NHIF). This marks a decline from 1.9 million insured individuals in 2021 to 1.77 million in 2024, indicating reduced disposable incomes.

Key Insights:

• Low Insurance Uptake: Rising living costs and taxes force households to prioritize essentials over insurance.
• Income Stability Matters: Employees retain coverage, while informal sector workers often drop insurance.
• Gender Gap: More men (1.22M) are insured than women (0.55M).
• Need for Flexibility: Fixed-premium models deter uptake; adaptable options could boost coverage.

Kibaki-era tycoons' company falls over Sh3.7bn KCB loan

Proctor & Allan (EA) Ltd, linked to Kibaki-era tycoons, fell into receivership over a Sh3.7B KCB loan, highlighting financial strain and market competition.

• Financial Struggles: Even major firms with influential backers face financial troubles, especially in economic downturns.
• Market Competition: Fierce competition in the cereals industry can erode market share and impact profitability, risking financial stability.

Kuscco-styled Sh82m theft hits Energy ministry’s Sacco

Energy Sacco Fraud: Staff colluded with members to steal Sh82.36M through fake shares and loans, mirroring Kuscco's Sh13.3B scandal.

• Internal Fraud Risk: Saccos are vulnerable when staff and members collaborate in financial misconduct.
• Stronger Oversight Needed: Transparent controls are essential to prevent large-scale embezzlement.

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More Curated Reads:

KRA boss picks senior managers to track hustlers:

• KRA's new unit, led by George Obell, aims to boost tax compliance by integrating small businesses and the informal sector into the tax system.

Quest for pureness: Adulterated honey encounter pushed duo into bee-keeping:

• After encountering adulterated honey, Erick Kamau and Philip Muchemi founded Waiyaki Way Beekeepers in 2020. Investing Sh500,000, they expanded into apiaries, processing, and honey by-products, prioritizing quality and sustainability.

“Catalysing Africa’s growth with AI”

• AI can drive Africa’s growth by boosting productivity, fintech, healthcare, and education, but challenges like job displacement and biases must be addressed.

Startup funder 54 Collective set to close shop, cut jobs:

• 54 Collective will close its venture studio in April 2025, cutting jobs and programs, but its $40M UAF1 fund will continue supporting African startups.

Housing, social hall plans lose Sh13.6bn in mini-budget:

• The Treasury cut Sh13.6B from housing projects, reducing targets for slum upgrades and social halls, potentially delaying key developments.