Hope for Saccos as New KUSCCO Leadership Tracks Ksh6.1 Billion for Recovery

• Many workers in private pension schemes are facing higher payroll deductions as only a few have received approval to offset increased NSSF rates.
• KUSCCO is working to recover billions lost in a heist, assuring saccos that their investments will be refunded through planned recovery measures.
• Senators have raised concerns over the Health Ministry’s budget increase, questioning the prioritisation of infrastructure over healthcare workers’ pay.
• Starlink’s subscriber growth in Kenya slowed sharply in late 2024, following network capacity issues and opposition from local internet providers.
• Health workers have issued a strike notice over salary delays, poor working conditions, and concerns about the Social Health Authority.
• MCSK’s bank accounts have been frozen for failing to obey a court order stopping its royalty collection activities.
• The Treasury insists external borrowing is crucial to keep counties running despite concerns over rising debt.
  

Most workers in private pension schemes have not been granted approval to offset higher NSSF deductions with their monthly retirement savings, forcing them to pay up to Ksh3,840 extra from February. According to The Business Daily, the Retirement Benefits Authority (RBA) has only allowed 38 percent of private pension schemes to implement the offset, while others continue to bear the full cost of both NSSF and private pension contributions. Employers without approval must also match the higher deductions, increasing their operational costs.

In a report by The Business Daily, the new leadership at KUSCCO has identified assets that will help recover Ksh6.16 billion that members have lost. The amount is about 70 percent of the Ksh8.8 billion and will be recovered through asset sales, debt collection, and restructuring. The new nine-member board will oversee the recovery, including the sale of a 60 percent stake in KUSCCO Mutual Assurance, auctioning of houses built by KUSCCO, and recalling loans from defaulting saccos. So far, Ksh136 million has been refunded to small saccos, with a full refund expected in five years.

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Health workers, including doctors, clinical officers, and UHC staff, have threatened to go on strike in May if the government fails to address their grievances, which include delayed salaries, statutory deductions, and the posting of interns. During a demonstration from Kenyatta National Hospital to key health offices, the workers also demanded permanent and pensionable terms for UHC staff and condemned the Social Health Authority (SHA) for failing to provide essential services. They further raised concerns over proposed salary cuts, warning that their pay could drop from Ksh70,000 to Ksh40,000 despite the Ministry of Health’s budget standing at Ksh3.7 billion, as reported by The Standard.

The uptake of Starlink’s satellite internet in Kenya dropped by 72.9 percent in the last quarter of 2024, adding only 2,360 new users between October and December compared to 8,723 in the previous quarter. The Business Daily reports that the slowdown came as the firm suspended sales in Nairobi and surrounding counties due to network overload. Despite maintaining a 1.1 percent market share, Starlink faces resistance from local providers like Safaricom, which raised concerns over its operating model. Other internet service providers, including Poa Internet and Vilcom Network, recorded market share growth during the same period. 

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Senators have criticised the Ministry of Health for allocating billions to non-essential projects while neglecting key areas such as healthcare workers’ salaries and pending bills. According to The People’s Daily, during a heated Senate Health Committee session, officials struggled to justify the ministry’s budget jump from Ksh91 billion to Ksh172 billion, with lawmakers questioning the focus on capital projects instead of addressing the challenges in the healthcare sector. The Social Health Authority (SHA) was singled out for its significant budget allocation, with some senators accusing the ministry of taking over devolved functions. Concerns were also raised over Ksh3.3 billion owed to healthcare workers under the Universal Health Coverage (UHC) programme, with senators insisting that funds should be reallocated to settle outstanding payments.

The Music Copyright Society of Kenya (MCSK) has suffered a major setback after the Milimani Commercial Court froze its bank accounts and M-Pesa paybill number for failing to comply with a court order barring it from collecting royalties. The court action follows a case filed by the Performing and Audio-Visual Rights Society of Kenya (PAVRISK), which accused MCSK, led by CEO Ezekiel Mutua, of unlawfully continuing its revenue collection despite a December 2024 court directive. PAVRISK claims MCSK has been issuing joint invoices and licences, violating intellectual property rights and mismanaging royalties meant for artists, producers, and publishers. The court has also directed NCBA Bank and Safaricom to provide certified transaction records of the affected accounts. Meanwhile, Mutua has been sent on compulsory leave, with Richard Sereti appointed as acting CEO until July 202, as reported by The People’s Daily.

Capital Business reports that the National Treasury has defended its decision to rely on external borrowing to fund county allocations, arguing that it is necessary to sustain service delivery despite rising public debt. Treasury Cabinet Secretary John Mbadi, appearing before the Senate Finance Committee, revealed that counties are still owed funds for February and March, as well as Ksh14.6 billion for January. Senators, led by Mandera Senator Ali Roba, raised concerns over Kenya’s debt sustainability, noting the country's debt-to-GDP ratio of 65.7% exceeds the recommended 55% threshold. In response, Mbadi assured that the government has a structured borrowing strategy, including a $1.5 billion loan from the UAE and ongoing talks with the World Bank for $750 million. Additionally, the Treasury is enhancing revenue collection through automation to reduce leakages and improve financial transparency at both national and county levels.