by Bukeni AbdullatifGovernment Considers Writing Off Ksh6 Billion in Hustler Fund Loans
Nairobi, May 22, 2025 — The Kenyan government is considering writing off approximately Ksh6 billion in defaulted loans disbursed under the Hustler Fund, an initiative launched in 2022 to empower low-income earners and small-scale entrepreneurs through affordable credit.
According to Susan Mang’eni, Principal Secretary in the State Department for Micro, Small, and Medium Enterprises Development, the proposed debt relief could affect over 10 million Kenyans who accessed the loans but have since defaulted due to economic hardships and limited business returns.
“We are reviewing options for restructuring or possibly forgiving a significant portion of the non-performing loans, especially those taken by the most vulnerable groups,” Mang’eni said during a recent press briefing.
The Hustler Fund, a flagship programme of President William Ruto’s administration, was introduced to provide instant, low-interest digital loans to individuals and micro-enterprises often excluded from mainstream financial services. Borrowers could access amounts ranging from Ksh500 to Ksh50,000 via mobile phones, with the intention of promoting financial inclusion and boosting grassroots entrepreneurship.
Despite its ambitious vision, the fund has faced mounting challenges. Data from the Ministry shows that nearly half of the total disbursed loans—amounting to Ksh13 billion—remain unpaid. Economic analysts cite factors such as high unemployment, inflation, and poor loan management education among borrowers as key reasons behind the default crisis.
The possible write-off is stirring mixed reactions. Supporters argue that forgiving the debt would give struggling Kenyans a second chance to rebuild their financial footing, especially amid rising living costs. Critics, however, warn that such a move could encourage future loan defaults and undermine financial discipline.
“Debt forgiveness, if not paired with improved lending criteria and borrower training, risks repeating the same cycle,” said economic analyst Dr. Lydia Ochieng.
Mang’eni assured that any decision made would be informed by data and stakeholder consultations. She also hinted at reforms in the Hustler Fund’s second phase, including credit scoring mechanisms and entrepreneurship mentorship programs to increase loan repayment rates and long-term impact.
As the government deliberates on this unprecedented financial decision, millions of Kenyans await clarity on whether their debts will be wiped clean — and what new conditions might govern future borrowing.
U.S. Senator Raises Concerns Over Kenya-China Ties
Washington D.C., May 22, 2025 — U.S. Senate Foreign Relations Committee Chairman Jim Risch has renewed criticism of Kenya’s growing economic and diplomatic engagement with China, calling the relationship “troubling” and urging caution from America’s long-time East African ally.
In a statement posted on X (formerly Twitter) on Wednesday, Risch expressed concern that Kenya’s increasing closeness to Beijing could undermine U.S.-Kenya strategic relations and expose the country to what he described as the “predatory practices” of the Chinese government.
“China remains the United States’ biggest global competitor. Kenya’s deepening ties with Beijing raise serious questions about transparency, debt sustainability, and the preservation of democratic institutions,” Risch stated.
The senator’s comments come amid a flurry of Chinese investments and infrastructure projects in Kenya, ranging from railways and highways to energy and technology sectors. China has become one of Kenya’s largest creditors, with billions of dollars loaned for major projects, including the Standard Gauge Railway (SGR), a flagship development initiative that has faced scrutiny over cost and viability.
Risch, a leading voice on U.S. foreign policy, warned that such engagements often saddle developing nations with unsustainable debt while allowing China to expand its geopolitical influence under the guise of economic development.
Kenya, for its part, has defended its ties with China as pragmatic and beneficial. Government officials argue that Chinese financing has helped bridge critical infrastructure gaps left unaddressed by Western donors and multilateral institutions.
“We maintain a non-aligned, multi-partner foreign policy that serves Kenya’s interests,” said a senior official in the Ministry of Foreign Affairs, responding to Risch’s statement. “Our cooperation with China is transparent and development-oriented.”
However, Risch’s statement signals mounting unease in Washington over the growing footprint of China in Africa, particularly in countries that have traditionally been aligned with the West. Kenya and the United States have long enjoyed close diplomatic, military, and trade ties—collaborating on counterterrorism, health, and education, among other areas.
Analysts suggest that as U.S.-China rivalry intensifies globally, countries like Kenya may face increasing pressure to balance their international alliances more delicately.
The statement is likely to add to ongoing debate in Nairobi about the long-term costs and benefits of foreign partnerships, especially as Kenya navigates pressing economic challenges, rising debt levels, and a shifting global order.
Kenya Seeks WHO Support to Scale Up Universal Health Coverage Rollout
Nairobi, May 22, 2025 — Kenya’s government has appealed to the World Health Organisation (WHO) for enhanced financial and technical assistance to accelerate the controversial Universal Health Coverage (UHC) programme, even as hundreds of UHC staff across the country continue to protest over pay and employment terms.
On the sidelines of the 78th World Health Assembly in Geneva, Health Cabinet Secretary Aden Duale held a bilateral meeting with WHO Director-General Dr Tedros Adhanom Ghebreyesus. In the meeting, Duale praised Kenya’s progress in piloting UHC and outlined the persistent funding shortfalls that have hampered full national rollout over the past three years. He formally requested that WHO increase its funding envelope and provide targeted support to strengthen Kenya’s health infrastructure and workforce under UHC
“We look forward to deepening our collaboration with WHO to advance our national health priorities and ensure that every Kenyan has access to quality care without facing financial hardship,” Duale stated in a press release.
The UHC programme, launched in 2020 in four pilot counties, aims to guarantee free essential services—including immunisation, maternal health, and treatment for communicable and non-communicable diseases—across all 47 counties. However, rapid expansion has been accompanied by budgetary constraints and a high demand for services, stretching the capacity of hospitals and clinics.
Compounding these challenges, approximately 8,571 health workers hired under UHC remain on contract terms, receiving only half the salaries of their permanent counterparts while carrying out identical duties. These medics—ranging from nurses and clinical officers to laboratory technicians and ambulance drivers—have staged repeated demonstrations demanding salary harmonisation, permanent and pensionable employment, and overdue gratuities .
County governments are due to assume payroll responsibility for UHC staff from July 1, a transition that workers fear will proceed without clear safeguards for fair pay or timely conversion to permanent terms. Health unions have warned that without prompt resolution, the rollout could be further jeopardised by low morale and staffing shortages.
As Kenya presses WHO for increased backing, stakeholders stress that sustained funding and robust oversight will be critical to fulfilling the constitutional right to health. Observers note that successful collaboration between national authorities, counties, and international partners will determine whether UHC can overcome its financial and operational hurdles and deliver on its promise of universal care.
AGOA Trade Deal Expiry Threatens Thousands of Kenyan Jobs
Kenya is bracing for economic turbulence as the expiration date for the African Growth and Opportunity Act (AGOA) looms. The trade agreement, which has provided duty-free access to U.S. markets for eligible African countries since 2000, is set to expire in September 2025—potentially putting thousands of Kenyan jobs on the line.
One of the largest employers affected is United Aryan, a major garment factory based in Nairobi. The factory, which exports approximately 8 million pairs of jeans annually to the United States, employs around 16,000 people. Without AGOA, these products would be subject to tariffs, threatening the factory’s competitiveness and, in turn, its workers’ livelihoods.
“AGOA has been a lifeline,” said Pankaj Bedi, owner of United Aryan. “If it’s not renewed, we won’t be able to compete with countries that have cheaper labor or better trade terms. That’s a death blow to us.”
AGOA’s impact on Kenya has been substantial, with an estimated 66,000 jobs created in the country over the past two decades. The agreement has also fostered broader economic growth in manufacturing and exports. But its potential lapse now casts a long shadow over these gains.
Economists warn that if the deal is not extended, Kenya’s export sector could face serious disruption. “Tariffs will make our goods more expensive in the U.S. market, shrinking demand and pushing factories to cut jobs,” said a Nairobi-based trade analyst.
The uncertainty also poses a diplomatic challenge. The U.S. administration, under President Donald Trump, has placed greater focus on revitalizing domestic manufacturing, which may make the renewal of such trade deals less of a priority. This has left African nations scrambling to ensure their interests are not sidelined.
While some African leaders have criticized AGOA for being overly conditional and unevenly beneficial, Kenyan experts argue that predictable, long-term trade policies are essential for continued growth and investment.
Alternatives such as the African Continental Free Trade Area (AfCFTA) offer potential relief, but they remain hampered by issues such as inadequate infrastructure and institutional fragility. For now, AGOA remains the most immediate and impactful option for sustaining industrial jobs linked to the U.S. market.
For workers like Valdes Samora, who supports her family of five on her income from United Aryan, the threat of job loss is deeply personal. “We’ve built our lives around this job,” she said. “Losing it would mean starting from zero.”
With just a few months remaining before AGOA’s expiration, the future of trade relations between the U.S. and Kenya hangs in the balance. What happens next will shape not only the economic trajectory of thousands of families, but also the broader contours of U.S.-Africa economic cooperation.
Kenya Power Issues Warning Over Fake Land Lease Agreements
Nairobi, Kenya – May 14, 2025
Kenya Power has issued a public alert warning landowners about a surge in fraudulent land lease documents being circulated through unofficial online platforms. The utility company revealed that unsuspecting individuals have fallen victim to scams involving fake lease agreements purportedly issued for wayleave access or infrastructure development projects.
In an official statement, Kenya Power cautioned the public against engaging with individuals or documents that are not verified by the company. The utility emphasized that all legitimate agreements and transactions must be processed through its official offices and by authorized personnel only.
“We urge members of the public to remain vigilant and to confirm the authenticity of any lease agreement or identification presented by individuals claiming to be Kenya Power staff,” the statement read. “All Kenya Power staff carry official identification, and any site visit or agreement must be preceded by formal communication from the company.”
The scam involves fraudsters approaching landowners and presenting them with counterfeit documents offering lease agreements in exchange for access to land, usually with promises of compensation or development. Victims are often convinced to sign documents or pay facilitation fees, only to discover later that the documents are not valid.
Kenya Power encouraged the public to take the following precautions:
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Verify staff credentials: Always ask for and verify official company identification before engaging with any representative.
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Contact official channels: Confirm any lease agreement or project proposal directly with Kenya Power’s customer service centers.
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Report suspicious activity: Any suspected fraud should be reported immediately to the nearest police station and to Kenya Power through their official communication channels.
This warning comes as infrastructure development continues to expand across the country, increasing the risk of fraud targeting landowners eager to benefit from utility projects.
Kenya Power reiterated its commitment to transparent engagement with the public and urged landowners to be cautious and informed in all dealings related to land use and leasing.
Kenyan Government Allocates Ksh.28 Billion to Boost Over 100,000 Small Businesses
Nairobi, Kenya – May 14, 2025
In a significant move to bolster the country’s micro and small enterprises (MSEs), the Kenyan government has announced the allocation of Ksh.28 billion in grants aimed at supporting over 100,000 businesses nationwide. This initiative is part of the government’s broader strategy to uplift individuals at the lower economic strata and fulfill promises made during the campaign period.
Deputy President Prof. Kithure Kindiki disclosed that each of the 70 constituencies will benefit from this program, with 70 businesses per constituency receiving Ksh.50,000 each. The grant recipients encompass a diverse range of small-scale entrepreneurs, including salon operators, barbers, and carpenters. These sectors are seen as pivotal in providing employment and services at the grassroots level .
The announcement was made during a youth empowerment event in Naivasha, hosted by Nakuru Governor Susan Kihika. Deputy President Kindiki, accompanied by National Assembly Majority Leader Kimani Ichung’wa, emphasized the government’s commitment to improving the livelihoods of the youth through job creation and economic empowerment .
This funding initiative aligns with Kenya’s broader economic strategies, including efforts to support Micro, Small, and Medium-Sized Enterprises (MSMEs) to boost economic growth and create sustainable jobs, especially in the private and informal sectors. The government is revising its MSME policy framework to align with the objectives of the Africa Continental Free Trade Area (AfCFTA) and other international trade agreements
Entrepreneurs interested in applying for the grant are encouraged to contact their local constituency offices for application procedures and eligibility criteria. The government has assured transparency and fairness in the selection process to ensure that the funds reach the intended beneficiaries.
This substantial financial support is expected to invigorate the small business sector, fostering innovation, employment, and economic resilience across Kenya.
Amnesty Report Exposes Harsh Abuse of Kenyan Domestic Workers in Saudi Arabia
Nairobi, Kenya – May 14, 2025
A damning new report by Amnesty International has brought to light the harrowing experiences of over 70 Kenyan women employed as domestic workers in Saudi Arabia. The report documents a pattern of widespread abuse, including deceptive recruitment practices, denial of rest, withholding of wages, and inhumane living and working conditions.
According to Amnesty, many of the women were lured by promises of well-paying jobs, only to find themselves subjected to exploitative environments upon arrival in the Gulf nation. The report reveals that some workers were confined to their employers’ homes, forced to work excessive hours without breaks, and in several cases, denied access to medical care or communication with their families.
“This is a crisis rooted in a lack of oversight and a failure to protect vulnerable workers,” said Tigere Chagutah, Amnesty International’s Regional Director for East and Southern Africa. “The stories we have documented are horrifying and unacceptable. The Kenyan and Saudi governments must act swiftly to reform labor policies, enforce accountability, and protect migrant workers from further harm.”
Many of the abuses are linked to the notorious kafala (sponsorship) system, which ties migrant workers’ legal status to their employers and leaves them at risk of exploitation. Amnesty’s report calls for the abolition of the kafala system and the establishment of independent monitoring mechanisms to safeguard workers’ rights.
In Kenya, the revelations have reignited public outcry over the country’s reliance on overseas employment as a solution to domestic unemployment. Lawmakers and civil society groups are urging the Ministry of Labour and Foreign Affairs to reassess bilateral labor agreements with Gulf states and improve pre-departure training and screening processes for recruitment agencies.
“This is a wake-up call,” said human rights advocate Sarah Mbote. “Kenya cannot continue to send its daughters into slavery under the guise of economic opportunity.”
In response to the report, Amnesty is urging both Kenya and Saudi Arabia to:
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Strengthen bilateral labor protections.
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Regulate and monitor recruitment agencies.
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Provide accessible complaint mechanisms for workers.
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Ensure prompt investigation and prosecution of abusive employers.
As the global spotlight shines on these abuses, pressure continues to mount for immediate and long-term reforms to ensure the safety and dignity of all migrant workers.
Rigathi Gachagua Launches New Political Party Amid Fallout with President Ruto
Nairobi, Kenya – May 14, 2025
Former Deputy President Rigathi Gachagua is set to officially unveil a new political party today in Nairobi, marking a significant turn in Kenya’s political landscape. The move follows his recent fallout with President William Ruto and signals Gachagua’s ambition to carve out an independent political path, particularly focused on the Mt. Kenya region.
The launch is expected to draw key political figures, grassroots leaders, and supporters from central Kenya and other regions. Sources close to Gachagua describe the new party as a “people-centric movement” aimed at restoring regional representation and addressing what he claims is growing marginalization within the current government.
“This is not just about politics—it’s about voice and visibility,” Gachagua said during a recent interview. “Mt. Kenya must not be reduced to a voting bloc. We must have a say in the decisions that affect us.”
Tensions between Gachagua and President Ruto have been simmering for months, with disagreements reportedly centering on resource allocation, appointments, and the perceived sidelining of the Mt. Kenya region in national affairs. Gachagua, once a staunch ally of the president during their United Democratic Alliance (UDA) days, now positions himself as a defender of regional interests and a proponent of political inclusivity.
Political analysts suggest that the formation of a new party could significantly shift the dynamics ahead of the 2027 general election. “Gachagua is tapping into a sense of political abandonment in the central region. Whether this translates into national momentum remains to be seen,” said Prof. Michael Wanjala, a political science lecturer at the University of Nairobi.
While the party’s official name and leadership structure are expected to be announced during today’s event, insiders suggest it will emphasize economic empowerment, devolution, and accountability in governance.
Gachagua’s bold step could signal the beginning of a broader realignment within Kenya’s political establishment. As the country inches closer to the next electoral cycle, his actions are likely to energize both supporters and critics—and reshape alliances across the board.
Homa Bay Deputy Governor Escapes Assassination Attempt; Governor Wanga Calls for Swift Investigation
Nairobi, May 13, 2025 — Homa Bay Deputy Governor Joseph Oyugi Magwanga narrowly escaped an assassination attempt on Sunday night, prompting widespread concern and calls for a thorough investigation.
According to reports, Magwanga was returning to his residence in Kabuor village, East Kamagak ward, Kasipul constituency, around 9:00 PM when he received intelligence that he was being trailed. Acting on this information, he altered his route and arrived home safely. Approximately 30 minutes later, his official vehicle, which was on the original route and carrying his security detail, was ambushed by unknown assailants who opened fire. A gunfight ensued, but no injuries were reported.
Magwanga had previously received threats, both verbal and written, which he had not taken seriously until this incident. He has since recorded a statement with the police, urging for a swift and impartial investigation.
Governor Gladys Wanga condemned the attack, emphasizing the need for peace and unity in the county. She called on security agencies to expedite their investigations and ensure those responsible are brought to justice. The incident comes shortly after the assassination of Kasipul MP Charles Ong’ondo Were, further heightening tensions in the region.
Police have launched investigations into the incident, with preliminary reports suggesting political motives behind the attack. Security around Magwanga has been increased as authorities work to identify and apprehend the perpetrators.
Magwanga has urged residents to remain calm and avoid speculation that could hinder the investigation. He emphasized the importance of resolving political differences through dialogue rather than violence.
As the county grapples with these events, leaders and citizens alike are calling for unity and a commitment to peace to prevent further escalation.
Bank AL Habib to Exit Kenyan Market After Four-Year Presence
Nairobi, May 13, 2025 — Pakistan’s Bank AL Habib Limited (BAHL) has announced the closure of its representative office in Kenya, marking the end of its four-year foray into the African market. The decision follows a directive from the Central Bank of Kenya (CBK), which provided guidance on the voluntary cessation of the bank’s operations in the country.
BAHL established its Nairobi representative office in 2020, aiming to tap into the multibillion-dollar international transaction business and strengthen trade ties between Pakistan and Africa. Operating under the name “BAHL – Representative Office,” the entity focused on research, marketing, and liaison activities, without engaging in commercial banking services.
In a notice dated October 27, 2023, BAHL stated that the last day of its operations in Kenya was June 30, 2024. The bank expressed gratitude to the CBK and its banking partners for their support during its tenure in Kenya.
Despite the closure in Kenya, Bank AL Habib continues to maintain a strong international presence, with operations in Bahrain, the Seychelles, China, Turkey, and the United Arab Emirates.
The bank’s exit from Kenya underscores the challenges foreign banks may face in establishing a foothold in new markets, even amidst robust trade relations between countries.
