News and Analysis
April 16, 2025
Hello Moneymakers, Emily here. In this Newsletter, we are covering the CBEX crypto mess, the Mitumba puzzle, and what Super Metro CEO Nelson Nduki confided in my colleague over the firing of 269 drivers.
In Summary:
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Crypto Platform Wipes Out Kenyan Users’ Wallets
Kenyans using the CBEX cryptocurrency trading platform have lost millions after their accounts were emptied over the weekend, according to a report by the Business Daily.
Why This Matters: Kenya is among the countries with a high number of cryptocurrency traders. Estimates indicate that more than 730,000 are actively engaged in the trade despite its murky past, where entire platforms wipe out billions of investments upon collapse.
The platform, which promised up to 30% returns in 30 days and AI-driven trading, now blames “targeted attacks” by fraudsters. CBEX says users will be compensated—but only after paying verification fees of up to Ksh25,930, depending on account size. The deadline for verification is April 17.
The incident adds pressure on the Kenyan government, which is pushing through the Virtual Asset Service Providers Bill, 2025, to regulate crypto activities under CBK and CMA oversight. The sector remains largely unregulated.
Super Metro CEO Call With Money 254
Super Metro has revealed that it will be disengaging 269 drivers following a ruling issued by the Transport Licensing Appeals Board Tribunal.
Speaking exclusively to Money254.co.ke, Super Metro's CEO Nelson Nduki confirmed that the company would comply with the ruling. Drivers who undergo a retest will be rehired.
Why It Matters: Super Metro, which ferries thousands of commuters a day and is a beloved PSV brand on the roads, has found itself in regulators' crosshairs after a series of discretions its staff is associated with, including pushing a passenger to their death from a moving vehicle. The suspension of its services affects many users.
What Nduki is Saying: “We have many drivers. We have 550 vehicles, and each vehicle is required to have two drivers in case of anything. This is because one can fall sick or take an off. Even if we disengage, it is not going to hurt our business. Again, we are not disengaging them and expelling them from our company. What we are doing is we are going to disengage them, they will go for retest and they will be hired back.”
Read Also: My 7-Year Experience Running a Spa Business - The Money and the Challenges
Kenya’s Renewed Push to Ban Mitumba
Kenya is reconsidering a ban on mitumba to revive the textile industry. The Ministry of Trade and Investment says mitumba imports have crippled local manufacturing and blames them for the collapse of Kenya’s once-thriving textile sector.
Why It Matters: Millions of Kenyan families earn their livelihoods through the Mitumba trade, and several Kenyans, who the ever-worsening economy has weighed down, rely on second-hand clothes for their daily basic needs.
Between 2019 and 2023, Kenya imported 865,911.5 tonnes of mitumba worth Ksh95.2 billion, with imports rising by 11.5% in 2023 alone. However, any ban could strain US- Kenya trade ties, especially after the US imposed a 10% tariff on Kenyan goods in response to concerns over Kenya’s tax policies on second-hand clothes and other items.
According to NTV, the ministry now plans to strengthen local production and regulate mitumba imports, though no final decision has been made. Rwanda, Uganda, and Ethiopia have already banned mitumba.
By The Numbers: A study from the Institute of Economic Affairs and Mitumba Consortium Association of Kenya established that 91.5 per cent of Kenyan households relied squarely on cheap textiles, mostly under Mitumba. The sector, on the other hand, employs north of 2 million Kenyans, who may lose their jobs if the ban is effected.
State Moves to Upskill Sacco Leaders After KUSCCO Scandal
The government is investing in training Sacco leaders to restore confidence in the cooperative sector following the financial scandal at the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
Why This Matters: The training comes against the backdrop of wayward KUSCCO employees who were cooking the books to assure the union’s financial health when, in reality, the balance sheet was dire. The underhand deals resulted in a Ksh13 billion scandal, causing uproar across the SACCO sector.
The Ministry of Cooperatives has now scaled back KUSCCO’s role to oversight and advocacy and placed the Sacco Liquidity Fund under the Sacco Societies Regulatory Authority (SASRA) for tighter control.
Speaking at the 2025 National Cooperatives Leaders’ Summit, CS Wycliffe Oparanya highlighted improved governance, digital transformation, and entrepreneurship as top priorities. The move comes as Saccos, which have over 14 million members and manage assets worth over Ksh1 trillion, remain key drivers of financial inclusion, especially in underserved areas.
By the Numbers: Over 250 Sacco leaders have already received training, with more expected as part of a broader plan to prevent future crises according to the People Daily.
Read Also: If You Have Medical Insurance, You Need to Read This - Now
Locally Assembled Cars Dip
Kenya’s locally assembled vehicle production fell 14.58% in 2024—the sharpest drop in seven years—as high borrowing costs cut into demand. Assemblers like Isuzu East Africa, Kenya Vehicle Manufacturers (KVM), and Associated Vehicle Assemblers rolled out 11,555 units, down from 13,527 in 2023. This was the first post-pandemic slump and the lowest output since 2021. New vehicle sales also dropped for the third year in a row to 11,059 units, the lowest since 2010. Despite tax incentives making it cheaper to assemble locally from completely knocked down (CKD) kits—accounting for over 80% of new car sales—the industry is under pressure. Leading firms like Isuzu (46.62% market share), CFAO Motors (34.26%), and Simba Corp (8.83%) are also facing policy shifts, with the government now prioritising electric vehicle adoption as part of its green growth agenda.
Read Also: How to Buy a House Through Boma Yangu
Tullow Exits Kenya’s Oil Project After Ksh76.9 Billion Loss
Tullow Oil has agreed to sell its entire stake in Kenya’s Turkana oil fields to Gulf Energy Ltd for at least Ksh15.6 billion, ending a 13-year struggle marked by delays and heavy financial losses.
The British firm has written off nearly Ksh77 billion over five years and failed to secure final investment approval from the government. According to the People Daily, Tullow will receive the payment in three tranches of Ksh5.2 billion and retain rights to royalties and a 30% stake in future development.
Its partners, Total and Africa Oil, had already exited citing doubts over the project's viability. Tullow had spent over Ksh129 billion on exploration but was unable to raise the financing needed to build key infrastructure like an export pipeline. The government’s repeated rejection of its investment plans further stalled progress.
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