Kenyans Who Lost Savings in Govt Job Saga Speak, Shilling Ranked Among Most Stable

Hello Moneymakers, Washington here. In today’s newsletter, we are covering how Kenyans lost money in a scandal involving the government’s programme for abroad jobs. We also detail what the World Bank has reported on the strengthening of the shilling.

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Shilling Among Stable Currencies - World Bank

The World Bank has ranked the shilling among the stable currencies in sub-Saharan Africa.

In its Africa Pulse report, the shilling is reported to have appreciated by 20 per cent, which was the highest in the region.

“African currencies gradually started to strengthen. For instance, the Kenyan shilling appreciated by 20 per cent throughout 2024 and has remained relatively stable in 2025. The South African rand and currencies that are pegged to the rand have fluctuated slightly in 2024 and so far in 2025 around the values registered by the end of 2023,” read the report in part. 

“African countries that experienced foreign exchange shortages as a result of increased external debt service and subdued export revenues saw their currencies weaken sharply, particularly in 2024. The weakest performing currencies over the past year were the South Sudanese pound, the Ethiopian birr, and the Nigerian naira, with reductions in value that exceeded 40 per cent in 2024.”

In its report, the World Bank also cautioned central banks against easing monetary policies that have reduced interest rates in recent months.

‍Of Note: Kenya is expecting to receive a Ksh97 billion loan from the World Bank before the end of June this year. The facility was negotiated by President William Ruto’s administration.

‍How Kenyans Lost Money in Fake Job Promises

The investigation by the Senate Committee on the government's diaspora job programme has revealed how hundreds of Kenyans lost their money as they sought to secure jobs abroad.

During the session held on Monday, April 28, Kenyans seeking better opportunities abroad detailed how they have yet to be sent abroad despite parting with Ksh15,000 in search of the jobs.

‍What It Matters: Kenyans often seek better opportunities abroad through various programmes such as the diaspora job programme being spearheaded by the government. More often than not, many Kenyans lose their hard-earned money to companies and agencies that promise fake jobs.

According to the affected Kenyans, they were asked to pay the money for medical examinations for the jobs that were advertised in December 2024 last year. 

The victims lamented that they had lost their hard-earned money, including savings and loans that had been taken from their families and saccos.

"When I went to KICC, I was told to pay a total of Ksh55,000. The Ksh15,000 was for medicals, which I borrowed from my wife, and the additional Ksh40,000, borrowed from my aunt-in-law, was supposedly for visa and attestation, among other expenses," one of the victims recounted.

Even as investigations continue on the unfolding scandal, Senators wondered why Kenyans were being asked to pay for the jobs that were advertised by the government.

The committee is expected to meet with the CS in charge of the Ministry of Labour and National Employment Authority (NEA) leadership later this week as the inquiry gathers momentum.

Also Read: 5 Effects of the Kenya Shilling Strengthening Against the US Dollar

‍CBK Says Banks With Less Than Ksh 10B Capital Likely to Freeze Dividends

The Central Bank of Kenya (CBK) says banks with less than Ksh10 billion in core capital will likely freeze dividends to retain profits and meet new capital requirements aimed at strengthening the financial sector, a report by Business Daily showed.

This means shareholders, including wealthy individuals and private equity firms, may face a dividend drought, especially in small and mid-sized banks. Large banks with subsidiaries below the new capital threshold must also inject funds to ensure compliance, limiting their ability to increase shareholder payouts. New regulations require banks to have at least Ksh10 billion in core capital by December 2029, with a phased rollout starting this year at Ksh3 billion.

Among the banks are: HF Group (Ksh8.667 billion), SBM (Ksh8.038 billion), Ecobank Kenya (Ksh5.009 billion), Habib AG Zurich (Ksh3.128 billion), M'Oriental (Ksh2.653 billion), CIB Kenya (Ksh2.367 billion), Middle East Bank (Ksh2.157 billion), DBK (Ksh2.141 billion), Access Bank Kenya (Ksh0.152 billion), and Consolidated Bank, which reported a negative core capital of Ksh-0.525 billion.

‍CBK Raises Ksh250B in Latest Treasury Bonds 

Kenyans have invested Ksh250 billion in the recently reopened Treasury bond, an indication of investor confidence in government securities.

According to the People Daily, the government had advertised Ksh175 billion. The oversubscription is also attributed to the bond turnover, which grey by 4.8 per cent in the week that ended in April 2024.

Additionally, there was oversubscription for the Treasury Bills, with the 91-Day bill being most popular among investors. Inventors placed bids for 16 billion against the Ksh3.6 billion, which was on offer.

Also Read: Kenya Kicks Off Loan Talks With IMF, World Bank Weeks After Cancelling Ksh466 Billion Deal

‍NSSF to pay claims in 24 Hours 

NSSF has commenced plans to process claims made by retired Kenyans within 24 hours.

‍Standard reported that the plan has already been tested and is aimed at enhancing service delivery for retired Kenyans who save billions during their time in the workforce.

“We have been able to pay benefits in one day. For instance, last month, we reported to work on a Monday, picked up whatever claims that had come to our Hill Branch, and by 3 pm, we had paid seven of them. That tells you it is possible to pay benefits in one day,” NSSF CEO Davis Koror stated.

Investors to Face Dividend Freeze in New CBK Rules for Banks

Under new regulations proposed by the Central Bank of Kenya (CBK) aimed at strengthening financial sector stability, investors in certain banks are poised to face a dividend freeze. 

According to the Business Daily, banks operating with a core capital base below the new Ksh10 billion requirement will likely be mandated to halt dividend payouts, retaining all profits to build up their capital reserves.

This signals an impending dividend drought, particularly impacting shareholders of the affected institutions, which primarily consist of small and medium-sized banks