Safaricom launches interest free loans
11 July 2022
Good Morning.
Terrible news from Japan. Japan's former prime minister Shinzo Abe died in hospital on Friday, local media reported, hours after being shot at a political campaign event.
Interest-Free loans for shoppers
Safaricom launched an interest-free loan product called Faraja, allowing its customers to buy goods worth up to KES 100,000 on credit.
The new service allows customers to buy goods and services on credit from as low as Ksh 20 to as high as Ksh 100,000, and pay the same amount without any interest later.
How Faraja will work: The catch with Faraja is that customers have to purchase goods from selected merchants. After choosing products or services, the customer can take ownership of those items without paying anything upfront.
Several retailers and service providers have already signed up for Faraja, including Naivas Supermarket, Goodlife Pharmacy, and City Walk.
Safaricom and Equity will facilitate the transactions. However, the technology powering Faraja is owned by a Fintech firm, Edomx Ltd
East Africa's first carbon offset exchange
Kenya signed a deal with Singapore's AirCarbon Exchange (ACX) to set up East Africa's first carbon offset exchange. The deal was signed on Monday during the official opening of the Nairobi International Financial Centre (NIFC).
Singapore's AirCarbon Exchange (ACX), which will develop the carbon exchange, stated that it will trade certified carbon offsets to help Kenya finance environmental projects, including reforestation and land restoration, as it seeks to meet its climate commitments.
"The carbon exchange will be an important element in Kenya's sustainable finance ecosystem," Kevin Iwanaga, president and chief operating officer – Middle East and Africa for ACX.
No exact date was given for when carbon trading would start.
TAX
KRA hits the tax collection mark of Ksh 2 trillion
The Kenya Revenue Authority (KRA), for the first time in history, hit a revenue collection mark of KSh2 trillion, surpassing the set target for 2021/22 by Ksh 150 billion.
KRA collected Ksh 2.03 trillion during the financial year under review, against an original target of Ksh1.88 trillion, and two revised targets of Ksh1.91 trillion and Ksh1.97 trillion respectively.
Breakdown of the tax collected
Domestic Taxes registered a collection of Ksh 1.297 trillion against a target of Ksh1.267 trillion.
Pay As You Earn (P.A.YE) registered a collection of Ksh 461.815 billion against a target of Ksh 455.129 billion.
Value Added Tax (VAT) collections amounted to KSh244.7 billion
The Voluntary Tax Disclosure Program (VTDP) contributed to a collection of Ksh 8.546 billion from 17,038 applications.
Relocate Mathari National Teaching and Referral Hospital?
The State plans to relocate the Mathari National Teaching and Referral Hospital (MNTRH) situated along the Thika Superhighway to a 200-acre piece of land in Ngong in Kajiado County.
The government hopes the new facility will provide better care and more rooms
The 34.3-hectare parcel of land in which Mathari mental hospital stands will be exchanged for an 81.69-hectare parcel of land in Ngong.
However, the relocation of Kenya’s only referral public psychiatric hospital from Mathare to Ngong is set to cost the taxpayer over ksh 5 billion‘Available records indicate the hospital will be relocated to a new location in Ngong, Kajiado County where a modern Neuropsychiatric National Teaching and Referral Hospital will be established at a cost of Sh5,000,000,000 over a two-year period’ - Auditor General
MONEY LAUNDERING
Flutterwave accounts frozen over Money Laundering Allegations
Kenya’s High Court froze more than Ksh 6.2 billion belonging to Nigerian start-up Flutterwave on the reasonable belief that they were proceeds of card fraud and money laundering.
The billions which were spread in Guaranty Trust Bank (GTB), Equity, EcoBank, KCB and Co-operative Bank accounts were frozen after the Assets Recovery Agency (ARA) applied to block the transfer or withdrawal, pending the filing of a petition to have the money forfeited to the government.
The Assets Recovery Agency (ARA), in court filings, stated that their investigations revealed the cash was wired in the guise of payments for goods and services.
According to the investigators, Flutterwave accounts had ksh 5.17 billion in 29 accounts at GTB, Equity and Eco Bank in Kenya shillings, US dollars, Euros and Sterling pounds.
WHAT YOU MUST HAVE MISSED LAST WEEK
The Kenya shilling hits a new low against the dollar
The Kenya Shilling touched a new historical low of Ksh 118 against the US dollar. So far in 2022, the Kenyan Shilling has depreciated against the US dollar by an estimated 4.31%.
Beyond the greater demand for US dollars, the local unit is expected to come under pressure from a widening current account deficit as the difference between imports and exports widens.
M-Pesa virtual Visa card is offering lower foreign exchange rates compared to banks
M-Pesa virtual Visa card is undercutting Kenya’s commercial banks with lower foreign exchange rates so as to get a larger share of the country’s cross-border payments market. Safaricom is banking on pricing to gain market share in a business segment that has been dominated by lenders.
The virtual card, which is available to more than 30 million M-Pesa users in Kenya, is charging Sh121.92 to the dollar for payments across Visa’s 61 million merchants.
Electricity Tokens sharing
Kenya Power is currently testing a revolutionary technology that will enable Kenyans to share tokens. The technology was launched on Thursday, July 6, during the Kenya Power Manufacturers and Innovation Expo 2022.
Numeral IOT, a city-based tech firm, is the developer of the application that will enable Kenya Power customers to share utility tokens.
New traffic regulations
As of today, The new law states that any driver found driving under the influence of a drink or drug to the extent as to be incapable of having proper control of the vehicle, shall be guilty of an offense and liable to a fine not exceeding one hundred thousand shillings or to imprisonment for a term not exceeding two years or to both.
Those found guilty of driving under the influence may further face disqualification for a period of twelve months from the date of conviction, for holding or obtaining a license.
Increase in Uber prices
Uber has increased its rates adding Sh10 to the minimum fare as a fuel charge to offset the recent jump in pump prices. The base fare — the price charged before the start of the trip — was increased by Sh8 to 108. The rate charged per kilometer was also raised to Sh26 from Sh25.
The new rates are likely to be rejected by riders who have been pushing for higher rates to compensate them for the rising cost of doing business.