KNH Denies Losing Ksh517 Million to Rogue Staff, says Ksh47 Million Went Missing

In Summary

• KNH lost Ksh47 million to cybercrime, recovered Ksh16 million, and clarified a PSC report error on the loss amount.
• Kenya Power has resumed dividend payments after nine years, following a sharp rise in profits driven by a strong shilling and increased electricity sales.
• A court suspension of the July-series KCSE exam has left repeat candidates in limbo, with no clear directive on whether they can sit the main exam later in the year.
• Nearly half of Kenyans remain unaware of the affordable housing programme, with rural and marginalised areas experiencing the highest information gaps.
• Kenya is looking for new donors to support its HIV programme after a temporary US funding pause raised concerns over access to lifesaving treatment.
• Kenya’s plan to tax multinational firms faces uncertainty after US President Donald Trump withdrew from a global tax deal, raising concerns over double taxation and potential trade tensions.

The Kenyatta National Hospital (KNH) lost Ksh47 million to cybercrime in the financial year ending June 2024, leading to the suspension of 11 employees and an internal investigation, as reported by The Business Daily. The hospital has so far recovered Ksh16 million and reported the case to investigating agencies, with the suspects now facing court proceedings. KNH clarified that it lost Ksh47 million and not Ksh517.9 million, as reported by the Public Service Commission (PSC), attributing the discrepancy to an erroneous report entry. The hospital has since strengthened its system security to prevent future fraud.

According to The People’s Daily, a Kenya National Bureau of Statistics (KNBS) report has revealed that 46.4% of Kenyans—about 28.1 million people—are unaware of President William Ruto’s affordable housing programme despite government campaigns and salary deductions for the housing levy. Awareness gaps are higher in rural areas (49.7%) compared to urban centres (40.1%), with counties like Wajir, Lamu, Mandera, and Isiolo recording the lowest awareness levels. While the programme offers incentives such as a 15% affordable housing tax relief, stamp duty exemptions, and deductions on housing loan interest, very few Kenyans are benefiting due to poor public engagement and infrastructure challenges in marginalised areas.

Kenya Power has declared an interim dividend of Ksh0.20 per share for the first time since 2015 after its half-year net profit surged 31 times to Ksh9.97 billion, driven by a stronger shilling, reduced debt burden, and increased electricity sales. The Business Daily reports that the firm’s revenue from electricity sales dropped to Ksh107.42 billion due to a tariff cut, but improved network reliability and higher power demand boosted unit sales by 5%. The rallying shilling helped cut loan repayments by 20%, reducing financing costs by Ksh3.1 billion, further strengthening Kenya Power’s financial position.

The fate of KCSE repeat and absentee candidates remains unclear after the High Court in Kisii suspended the newly introduced July-series examination, forcing the Kenya National Examinations Council to halt registration. The Ministry of Education, which had limited repeat candidates to the July exam, is now under pressure to clarify if they will be allowed to sit the November/December series. Education PS Belio Kipsang assured students they would not be disadvantaged, while the Kenya Union of Post Primary Education Teachers supported the court’s decision, citing limited preparation time. Consultations are ongoing to explore alternatives for candidates seeking to retake classes before sitting the exams, as reported by The Standard.

Kenya is seeking new donors to support its HIV programme after the US government temporarily paused funding and distribution of HIV drugs under the President’s Emergency Plan for AIDS Relief (Pepfar). While the US lifted the pause on Wednesday, The Star reports that uncertainty remains over whether the waiver includes preventive drugs and other critical services. Health director-general Patrick Amoth said the Ministry of Health is engaging development partners and private sector stakeholders to secure alternative resources and ensure continuity of healthcare services. Global health organisations had warned of severe consequences for millions of people relying on US-funded HIV treatment, but the US later clarified that core lifesaving medicine and medical services would be exempt during the review period.

The National Treasury is facing challenges in implementing the newly introduced three per cent Significant Economic Presence (SEP) tax and 15 per cent domestic minimum top-up tax on multinationals after US President Donald Trump withdrew the US from the OECD global tax deal. The Standard reports that the decision raises concerns over double taxation for American firms operating in Kenya, potentially deterring foreign direct investment. Analysts warn that the move could spark a tax dispute between Kenya and the US, with Washington possibly retaliating if Kenya insists on enforcing the new tax measures. The SEP tax, which replaced the 1.5 per cent Digital Services Tax, targets multinational firms with digital operations in Kenya, while the minimum top-up tax ensures global companies pay at least 15 per cent tax on income earned locally.

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