Disquiet Over Treasury’s Tender for Supply of Choppers

In Summary

• The suspension of USAID funding threatens the stability of Kenya's NGO sector and related industries.
• The Kenyan government’s decision to spend on chartered helicopters while struggling with debt and inflation is drawing public backlash over its financial priorities.
• The government is set to introduce a revised tertiary education funding model in September to address gaps in the previous one scrapped by the High Court.
• KRA has collected Ksh2 billion in January from its extended tax amnesty programme, which runs until June 2025.
• Kenya has condemned embassy attacks in DRC, calling for urgent peace talks to ease rising tensions.
• Kebs suspends Rongtai Steel’s operations over the production of substandard ribbed bars, amid growing safety concerns in the construction sector.

President William Ruto’s government is facing criticism for spending taxpayer money on chartered helicopters, despite claims of fiscal discipline and austerity measures. While Kenyans continue to suffer from rising living costs, inflation, and a growing public debt, the government’s decision to purchase high-end helicopters for State officials paints a picture of financial imprudence. According to The People’s Daily, the cost of hiring a helicopter in Kenya can reach between Ksh120,000 and Ksh370,000 per hour, a significant expense compared to more affordable travel options like flights or trains. This decision comes at a time when the country’s public debt has reached Ksh10 trillion and pending bills amount to Ksh528.36 billion, straining businesses and the economy. Critics argue that these unnecessary luxuries undermine efforts to improve fiscal sustainability and hurt the public’s trust in the government. 

The Standard reports that The recent halt of USAID funding by the U.S. government has placed Kenyan airlines, hotels, small businesses, and numerous NGOs in a precarious economic position. This suspension affects a wide array of projects, including healthcare and infrastructure, which have been significantly supported by USAID for nearly six decades. In the previous year, USAID allocated Ksh19.2 billion to Kenyan programmes, a decrease from Ksh32.4 billion the year before. The abrupt funding freeze has led to immediate disruptions, with many international NGOs halting projects and facing uncertainty about resumption. Local airlines and hotels are also experiencing reduced bookings, as USAID-funded travel within Kenya has been significantly curtailed. Critics argue that this decision will severely impact vital sectors such as healthcare and education, potentially leading to job losses and economic decline. 

The government is working on a revised tertiary education funding model after the High Court scrapped the previous one in December 2024, as reported by The Daily Nation. A special committee appointed by President William Ruto has submitted a preliminary report proposing changes to the Means Testing Instrument (MTI) used to assess students’ financial needs. Education CS Julius Ogamba stated that the final model, expected to take effect in September, will expand variables to ensure more accurate categorisation of students based on household income. The government is also appealing the court ruling as first- and second-year students struggle with a lack of funding following the suspension of the previous model.

The Kenya Revenue Authority (KRA) has collected Ksh2 billion in January under the extended tax amnesty programme, which aims to raise Ksh30 billion from waived penalties and interest on tax debts. The tax pardon, running until June 2025, offers automatic waivers for taxpayers who have cleared their principal tax obligations by December 31, 2023, while those with outstanding dues must apply and propose a payment plan. KRA Chairman Ndiritu Muriithi urged Kenyans to take advantage of the programme, citing the previous amnesty round, which mobilised Ksh50.5 billion despite falling slightly short of its target, as reported by The Business Daily. 

The government has strongly condemned attacks on Kenyan, Ugandan, and South African embassies in Kinshasa, terming them a serious violation of international law, as reported by Capital Business. Foreign Affairs PS Korir Sing’Oei called on DRC authorities to take swift action to protect diplomatic missions, reaffirming Kenya’s commitment to supporting peace efforts in the region. The attacks come amid rising tensions in eastern DRC, where ongoing conflict has led to a humanitarian crisis, hospital overcrowding, and mass displacements. Calls for peace talks are growing, with Kenya set to host a meeting between DRC President Félix Tshisekedi and Rwandan President Paul Kagame. 

The Kenya Bureau of Standards (Kebs) has suspended the manufacturing permits of Rongtai Steel, a Chinese steel company, following claims of substandard ribbed bars. The agency conducted a market surveillance and seized non-compliant products both from the manufacturer’s premises and the market. Kebs has ordered a halt to production, a recall of all substandard products, and suspended the company’s operations until it meets required standards. This action comes amid rising concerns over building collapses, with reports linking substandard construction materials, including steel, to the growing safety risks in the construction sector. The Business Daily reports that Kebs has advised the public against purchasing ribbed bars from Rongtai Steel until further notice.