Teachers Lose Millions in Fake TSC Recruitment

In Summary

• Employees whose SHA deductions are not remitted on time risk being denied medical services, with employers facing penalties for non-compliance.
• Desperate job seekers have lost millions in a TSC recruitment scam, with authorities now investigating the fraud.
• Kenya missed out on Ksh110 billion in IMF funding due to unmet conditions, forcing the government to seek alternative financing.
• Standard Chartered Bank Kenya’s profit growth has enabled it to declare a record Ksh17 billion dividend payout.
• Kenyans will soon get real-time ID application updates, digital IDs, and mobile registration, with the Ksh300 fee now scrapped for better access.
• NSSF has diversified its portfolio with Eurobonds and private equity while its total assets grew to Ksh402 billion, supported by increased member contributions.

Thousands of salaried Kenyans risk being locked out of Social Health Authority (SHA) services if their employers fail to remit deductions by the 9th of every month. SHA Acting CEO Robert Ingasira told senators that the system automatically blacklists employees whose contributions are not received on time, leaving many stranded at hospitals. The People’s Daily reports that employers who fail to comply face a 2% penalty on unpaid amounts, while those making unauthorised deductions risk fines of up to Ksh2 million or three years in jail. The SHA has urged employers to meet their statutory obligations, noting that under the Social Health Insurance Fund (SHIF), Ksh17.8 billion has been paid out, while Ksh12.2 billion has been disbursed under the Primary Healthcare Fund. The government has also enhanced coverage for chronic illnesses requiring dialysis and chemotherapy.

Hundreds of jobless teachers in Baringo, Elgeyo Marakwet, and Uasin Gishu have lost over Ksh3 million in a fake Teachers Service Commission (TSC) recruitment scam, as reported by The People’s Daily. Victims were tricked into paying large sums for fake job offers, with some taking loans or selling family land to secure positions that never existed. One teacher from Kabarnet lost Ksh100,000 after her family sold their land, while an Eldoret-based detective lost Ksh120,000 in a desperate attempt to help his daughter get employed. The scammers, posing as TSC insiders, issued fake posting letters that were later discovered to be forgeries. Authorities are investigating the matter, with key suspects having switched off their phones to evade arrest.

Kenya lost access to Ksh110 billion in IMF funding after failing to meet 11 of 16 conditions, including restructuring Kenya Airways and ensuring fuel levies were used strictly for subsidies, as reported by The Business Daily. The Treasury has now requested a new IMF funding programme after the final review of an existing deal was terminated, creating a budget gap. The IMF flagged issues such as fiscal policy slippages, failure to secure a strategic investor for KQ, and diversion of fuel levy funds, among other concerns. The government is now turning to other fundraising strategies, including Eurobond buybacks and a $1.5 billion loan from the UAE, to plug the deficit. 

Standard Chartered Bank Kenya will pay shareholders a record Ksh17 billion in total dividends after its 2024 full-year profit rose 45 percent to Ksh20 billion. In a report by The Business Daily, the bank has declared a final dividend of Ksh37 per share, payable on May 28 to shareholders registered by April 30, adding to an interim dividend of Ksh8 per share paid last October. The profit surge was driven by a 40.3 percent rise in non-interest income to Ksh17.4 billion and a 13 percent growth in net interest income to Ksh33.2 billion. Operating costs remained stable at Ksh22.4 billion, supported by a nearly Ksh999.2 million drop in loan loss provisions. Despite a seven percent decline in net loans and a 13.7 percent drop in customer deposits, the bank expects continued profitability by leveraging falling interest rates to boost lending volumes. 

Kenyans will soon be able to track the progress of their national ID applications in real-time through a new post-issuance ID tracking system, Interior Cabinet Secretary Kipchumba Murkomen has announced. According to The Eastleigh Voice, the system, which will provide updates via SMS or an online platform, aims to reduce long waiting times and uncertainty in the application process. Murkomen also revealed plans for a national digital identity management system that will include virtual IDs and digital wallets, allowing citizens to store identification documents on their smartphones and integrate with government services. Additionally, the government is rolling out mobile registration outreach programmes to bring ID services closer to rural areas, schools, and urban centres. Efforts are also underway to improve ID registration services for Kenyans living abroad through enhanced collaboration with the Ministry of Foreign and Diaspora Affairs. Additionally, the Interior CS also gazetted the removal of the Ksh300 fee for national ID applications, allowing Kenyans to apply for IDs and verify documents for passport processing at no cost as reported by Capital Business. 

The National Social Security Fund (NSSF) has expanded its investment portfolio by allocating Ksh7.17 billion to Eurobonds and increasing its private equity investments to Ksh5.5 billion in the year to June 2024, as reported by The Business Daily. This marks the fund’s first venture into Eurobonds, aimed at boosting returns while hedging against the shilling’s depreciation. NSSF’s total assets grew to Ksh402 billion, driven by higher member contributions, which more than doubled to Ksh62.3 billion following the implementation of the NSSF Act 2013. Despite the diversification, government bonds remain its largest investment at Ksh253.8 billion, with listed equities following at Ksh61.2 billion.