Supreme Court verdict
5 September 2022
Good Morning. Today we expect the supreme court to rule on the 2022 Presidential elections. The Apex court retreated to pen a summary ruling last weekend.
Today, sections of the road in Nairobi will be closed ahead of the election petition judgment.
New digital number plates for Kenyan Motorists
Last week, new digital number plates were unveiled. According to NTSA, the new generation number plate is fixed with an RFID microchip embedded on the sticker to facilitate the wireless transfer of information between it and mobile police readers or at traffic lights.
The Cabinet Secretary said the number plate replacement on existing vehicles will start from 1st October and Kenyans have 18 months to comply with the new directive.
Replacement of the number plate will cost Ksh 3000.
Motorists face a fine of up to Sh20,000 or a jail term of six months if they fail to apply for a new digital number plate in the next 18 months
Data on motor vehicles in Kenya
Official data shows Kenya had 3.9 million registered vehicles at the end of 2020.
The number of car and motorcycle registrations is currently growing at nearly 400,000 per year, with bikes accounting for over 70 percent of the listings.
The government is set to collect over Ksh 12 billion from the purchase of new number plates.
Kenya Power blocked third-party vendors from selling tokens
Kenya Power has locked out third-party vendors from selling tokens for pre-paid customers. The company stated that the decision was due to increasing complaints about delays and cases of billing fraud.
The change will be effective from September 1.
the third-party vendors affected include VendIT, banks and shops
what this means for customers
all post-paid customers will have to pay their bills through 13 bank accounts and two M-Pesa paybill numbers.
Pre-paid customers will only buy tokens through the M-Pesa pay bill
This is not the first time third-party vendors have been locked out
In 2019, Kenya Power stopped third parties from buying tokens for customers. However, this led to protests by the Consumer Federation of Kenya (Cofek) who argued that it was wrong for Kenya Power to punish vendors due to the criminal activities of a few individuals.
Higher prices of goods due to Increase in Excise Duty
The prices of some goods, including beer, bottled water, and juice, could rise from October 1 as the Kenya Revenue Authority (KRA) moved to effect annual inflation tax adjustment on excise duty charged on the products.
KRA stated that excise duty on the products will increase by 6.3 percent effective next month in line with average annual inflation.
The increase will see manufacturers pass on the additional cost of the commodities to end users and this may trigger outrage by most households that are yet to recover from the effects of the Covid-19 pandemic.
NAIROBI COUNTY
Motorists in Nairobi to pay parking fees using a new system
as of Friday last week, motorists in Nairobi were expected to pay parking fees using a new system developed by the county.
motorists dial *647# for payment of parking fees, which is directly linked to the KRA account.
The new system is a move by the county government to shift from having KRA collect revenue. Director of parking at the Nairobi City County Tom Tinega stated that they had finalized the new system, which disengages the one that currently links payments made by motorists to KRA.
KRA took the role of collecting tax on behalf of Nairobi county in March 2020
TAX
Kenya Set to Sign Double Taxation Agreement with China
Kenya plans to sign an agreement with China to end double taxation of income or gains arising from one country and paid to residents of the other.
The deal, which will be subject to ratification by both the Chinese and Kenyan parliaments, is meant to create a conducive environment for investment and trade in goods and services between the two countries.
National Treasury Cabinet Secretary Ukur Yatani has asked citizens for their views before the government signs the deal.
A review of the intended Double Taxation Agreement (DTA) between Nairobi and Beijing showed it would focus on trade and investment, education and research, and sports.
Kenyans studying in China, for example, will be exempted from paying tax on cash sent to them for tuition and upkeep in the proposed deal.
WHAT YOU MUST HAVE MISSED
Hospitals to withdraw outpatient services for members of NHIF
Over 660 hospitals plan to withdraw outpatient services for members of the National Hospital Insurance Fund (NHIF) in protest following a mismatch in capitation rates and delays in signing contracts.
The healthcare providers stated that the insurer had not distributed physical contracts for the 2022-2024 cycle exposing them to potential legal hurdles.
The Capital Markets Authority (CMA) approved the roll-out of the Chumz app to the mass market
Chumz App, built by Moneto Ventures Limited, is a mobile application that functions as a collective investment scheme (CIS) intermediary service platform.
It enables investors to save and invest towards a specific goal with as low as Sh5.
The funds earmarked by clients towards a specified goal are held by a custodian bank licensed by the Authority for safekeeping and invested in a CIS registered by the Authority.
Flutterwave’s Assets were frozen by the High Court
A Kenyan High Court froze another Ksh 400.6 million in three bank accounts and 19 Safaricom M-Pesa Paybill numbers belonging to Nigerian start-up Flutterwave on claims of money laundering.
The millions held in two accounts at UBA Bank, Access Bank, and 19 M-Pesa paybills 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.
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