Kenya Power moves to EV's
3 October 2022
Good Morning and welcome to October which is Kenya’s annual tax month.
A key highlight of President William Ruto’s inaugural speech at the National Assembly was the pledge that his government would seek to raise taxes from the wealth accumulated by the wealthiest Kenyans over getting revenues from workers and traders.
what is a wealth tax?
It is a tax imposed on an individual’s net wealth or the market value of their total owned assets minus liabilities.
A wealth tax can be narrowly or widely defined, and depending on the definition of wealth, the base for a wealth tax can vary.
Kenya Power plans to phase out fossil-fueled cars
Kenya Power stated that it has started the process of phasing out vehicles that run on fossil fuels for electric ones as a way of adopting “sustainable ways of doing business.”
Kenya Power has set aside Sh40 million to purchase electric-powered vehicles as it moves to phase out fossil-powered cars from its fleet.
The first stage will involve the purchase of three electric vehicles, two pick-ups, and one four-wheel drive, and the construction of three electric vehicle charging stations in Nairobi.
Kenya Power has already invited bids for the construction of an e-mobility network infrastructure system (Enis) for the initial charging stations, which will allow payment through mobile money and credit cards.
TAX
1. Kenya Revenue Authority to auction uncleared goods
The Kenya Revenue Authority will on Wednesday and Thursday auction goods worth millions of shillings at the Jomo Kenyatta International Airport (JKIA) in Nairobi and the Port of Mombasa.
The items include high-end used vehicles, motorcycles, household items, bags of sugar, gypsum powder, textile, aluminum bauxite, and massage oils and perfumes among other imported goods that have been stuck at the port of Mombasa.
The goods at JKIA include Russian beer, whisky, vodka, assorted wines, and personal effects.
The majority of the cargo that will be auctioned entered the country between January and May this year, according to the report from KRA.
Interested buyers may view the goods at several Container Freight Stations in Mombasa including; BFT, Kencont, FOC, and Portside Shed 7/8 among others.
2. Kenya Revenue Authority to Launch a TV station
Today, the Kenya Revenue Authority (KRA) will unveil a web-based television (TV) station dubbed “KRA TV”.
The station’s aim is to enhance tax literacy in the country through the dissemination of simplified tax and Customs content.
details of the TV station
The “KRA TV” platform will be hosted on KRA website and drive a demand-based viewership.
The station will host customized tax content that the public may consume at their convenience.
The key features on the Tv will include: Scheduled live programming of tax awareness activities like Tax Talks, Tax Thursdays, Stori za Ushuru and other education programs.
The TV station will also air a wide range of simplified and downloadable content for various taxpayer categories among the many other programmes.
MOBILE MONEY
Safaricom announced major changes to its Fuliza overdraft facility
1. Credit Reference Bureau (CRB) to remove over 4 Million Fuliza Loan Defaulters from the list
The government announced that over 4 million Fuliza defaulters will be removed from the Credit Reference Bureau (CRB) and other blacklists from November this year.
The announcement was made by President William Ruto when he met officials from Treasury, Central Bank, Safaricom, Kenya Commercial Bank (KCB) and NCBA.
President Ruto stated that the lenders have now agreed to develop a new credit score system as opposed to blacklisting customers. The President explained that the Government will underwrite the risks that will come with the new move.
2. The New Fuliza rates
Fuliza has cut daily charges for loans below Ksh 1000 by 40% and introduced a three-day grace period for repayment of loans.
Fuliza Loans below Ksh 500 attract Ksh 3 daily charges down from Ksh 5.
Daily charges on loans of up to Ksh1000 will come down from Ksh10 to Ksh 6
Fuliza loan upper band of between Ksh 2500 to Ksh 70,000 have been handed a 16.7% price cut from Ksh 30 daily to Ksh 25.
Safaricom will retain the 1% access fee on all borrowings.
ECONOMY
Government Set to Privatise State Corporations
President William Ruto has backed the privatization of State Corporations in a bid to raise more funding for the government.
Privatization will most likely lead to the sale of government firms to the public through initial public offers (IPOs) in addition to further divestitures to State-run firms that are already listed on the Nairobi Securities Exchange (NSE).
“I have created the Ministry of Trade, Investment and Industry so we can look much closer to our financial markets working with our State Owned Enterprises (SOEs) and assess the ones we can bring for the public to be owners so we can share in the profits and release some resources for us to deliver on some of our infrastructure requirements instead of borrowing,” President William Ruto.
Benefits of privatization
The privatization of State Corporations will end the Nairobi Securities Exchange (NSE) listings drought, whose last initial public offer (IPO) came in 2015.
Privatization would also mark a win-win outcome as the government also unlocks key financing with the Public Budget Office (PBO)
JUDICIAL DECISIONS
1. High Court rules that governors do not require a degree to be eligible to vie
The High Court declared Section 22 (ii) of the Elections Act unconstitutional. Section 22 requires one to have a degree inorder to vie for Governor.
Delivering the ruling, which takes effect in the next General Election, judge Anthony Mrima said the qualifications for both MCA and Governor should be similar.
"A declaration is hereby issued that pursuant to article 180 sub article 2 as read with section 183 of the constitution, the qualification for the election of a County Governor is similar to the eligibility for election as an MCA," - Justice Mrima.
2. Law denying widows the right to inherit property after remarrying declared illegal
The High Court in Meru has declared sections of the Succession Act unconstitutional for denying widows the right to inherited property when they remarry.
Justice Edward Murithi, in a judgment issued on Thursday, ruled that section 35 (1) (b) and section 36 (1) (b) of the Law of Succession Act were unconstitutional. The above-mentioned sections deny a widow the right to the deceased husband's estate if she remarries.
WHAT YOU MUST HAVE MISSED
Share prices in Nairobi Securities Exchange have been dropping
Share prices have been dropping at the NSE due to foreign investor sell-off. Foreign investors are exiting from emerging markets (which are considered risky) such as Kenya due to an increase in the cost of borrowing in the US and Europe.
Interest in bank loans set to increase
The interest on bank loans is set to increase following the increase of the Central Bank Rate (CBR) from 7.5% to 8.25%.
Higher interest on loans leads to less borrowing which in turn reduces the amount of money in circulation in the economy leading to reduced inflation.
Burkina Faso Coup
Burkina Faso's self-declared military leader Captain Ibrahim Traore has accepted a conditional resignation offered by President Paul-Henri Damiba to avoid further violence after Friday's coup