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Since President William Ruto took office, his clarion call has been to reduce the economic burden on Kenyans; resulting in the formation of the Bottom-Up Economic Transformation Agenda (BETA).

Sceptics questioned whether his formula would work as the majority questioned whether he would make an impact because he deputised his predecessor former President Uhuru Kenyatta in two successive terms.

On the other hand, others expressed optimism that Ruto's plan to transform the economy would come to fruition during his tenure.

One year and five months in office, Ruto has received praise and criticism in equal measure over his policies. Some observers have heaped praise on Uhuru's tenure, noting that the cost of doing business has become difficult in the current regime.

Kenyans.co.ke gives a breakdown of how Ruto has fared in his tenure and draws comparisons with Uhuru during the same timeframe.

To calculate the inflation rate, the Kenya National Bureau of Statistics (KNBS) is guided by the Consumer Price Index (CPI). This compares the retail prices of household goods and services during a period and analyses the changes in cost.

Comparison

When Uhuru took office in April 2013, the inflation rate in the country stood at 4.14 per cent. The data rose to 9.2 per cent when he left office, averaging a rate of 6.35 per cent during his two terms.

In contrast, former President Mwai Kibaki took office when the country's inflation rate was 2 per cent and averaged 10.98 per cent throughout his tenure.

At the onset of Ruto's regime in September 2022, the rate had peaked at 9.2 per cent, signalling a ripple effect in the high cost of basic commodities.

From the graph above, Ruto's inflation rate has dropped to 6.3 per cent as of February 2024. However, throughout his tenure, the rate had peaked at 9.23 during the first three months of 2023.

The variance in inflation rate can be attributed to policies instituted by the Central Bank of Kenya (CBK) in mitigating the cost of living.

USD Exchange Rate

From 2013 to 2023, the shilling has lost an average of 30 per cent of its value, indicating the steep depreciation of the Kenyan currency. 

The shilling dropped from the initial Ksh84.70 in 2013 to the current Ksh133.07 as of March 21, 2024, according to data from the CBK. 

In contrast, the dollar was trading at Ksh77.35 when Kibaki became president and depreciated to Ksh84.70 by the time he left office in April 2013. 

For the better part of President William Ruto's regime, the majority of Kenyans of different political leanings have raised concerns over different tax policies tabled in Parliament.

Ranging from Housing Levy that affects all Kenyans to taxes that concern a particular niche such as the Export and Investment Promotion Levy, the measures have gone beyond the normal Pay As You Earn (PAYE) and Value Added Tax (VAT).

With a worker's income reduced, this has forced them to cut back on consumption of items to make ends meet. Others have also lost their jobs as companies seek to cut on costs and stay afloat.

Kenyans.co.ke takes a look at taxes introduced since Ruto took over office;

List of taxes introduced during President William Ruto's regime.

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Kenyans.co.ke

Finance Act 2023

In July 2023, President Ruto implemented the Finance Act 2023, lining up several tax measures to raise an additional Ksh211 billion.

Housing Levy

Ruto's government introduced a 1.5 per cent levy paid by employees which is matched by employers.

Background

One of the President's legacy projects, the Housing Levy came into effect amid legal hurdles, including a High Court ruling in July 2023 that declared the levy illegal due to lack of public participation. After nearly a nine-month battle, the Affordable Housing Bill was drafted and tabled in Parliament.

The proposal was passed in both houses and took effect on March 19, 2024, when the Head of State assented to the bill.

It has however been challenged in court again.

Impact

Following several amendments to the bill, all Kenyans will be required to pay 1.5 per cent of their gross monthly pay.
 

This also includes Kenyans working in the informal sector and also those not earning salaries.

Doubling of VAT Tax

The Value Added Tax (VAT) rate on petroleum products was doubled to 16 per cent.

Background

The provision was introduced in the Finance Act 2023, as the government sought to raise an additional Ksh50 billion from fuel taxes.

This was criticised by the opposition members who questioned the impact the amendment had on the cost of living. 

On the other hand, Kenya Kwanza MPs argued that the amount would be channelled toward rehabilitation of road networks across the country.

Impact

The provision saw a hike in fuel prices at the time, with a litre of Super petrol rising by an additional Ksh10 in a month. Lower-income households were among the most affected by the amendment due to the rise in the inflation rate.

Turnover Tax

Background

A levy was introduced for all businesses at a standard rate of 3 per cent whether a business made a profit or not.

Impact

The levy was initially charged at one per cent and affected only businesses whose turnover amounted to Ksh1 million or more. With the new provision, all businesses would be affected by the provision.

Expanded PAYE

Background

One of the provisions within the Finance Act, PAYE was expanded by introducing two forms in addition to the current rate of 30 per cent.

Impact

Those earning between Ksh500,000 and Ksh800,000 would have to pay 32.5 per cent while those earning above Ksh800,000 would be required to pay 35 per cent. 

This impacted high-earning income households which had to part with more.

Export and Investment Promotion Levy

Background

President Ruto proposed an increase in the Export and Investment Promotion Levy on all imported goods to promote local manufacturing.

Impact

According to Ruto, the levy would be set at a ten per cent rate on the customs value of the imported goods. This was expected to raise Ksh10 billion in revenue.

A caveat is that goods sourced from countries within the East African Community would be exempted from the levy.

Kenya Wildlife Service (KWS) on Tuesday, March 19, announced the recruitment of 1,500 cadets (assistant warden 1) and rangers. 

According to a notice from KWS, the recruitment exercise will be undertaken in various parts of the country from Monday, April 15, to Friday, April 19, 2024.

“KWS operates in remote environments and seeks to recruit 1,500 young and dynamic individuals as Cadets (Assistant Warden I) - 150 and Rangers – 1,350 who can endure the conditions for training and deployment to various conservation areas in response to the wildlife protection challenges currently being experienced in the country in a phased approach,” the recruitment notice read in part. 

Rangers from the Kenya Wildlife Service (KWS)

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KWS

The exercise will be open for all qualified Kenyans free of charge. 

Requirements for Cadets

Applicants must be Kenyan citizens 28 years of age and below. Additionally, they must be in good health and have no criminal record. 

Academic qualifications needed include a Bachelor’s degree minimum of second class honours lower division in Wildlife Management, Natural Resources Management, Environmental Science, Range Management, Veterinary Medicine, Criminology & Security Management, Tourism Management, Education, Sociology or Community Development from a recognised institution. 

Shortlisted candidates will be required to undergo mandatory paramilitary training for nine months before deployment. 

Requirements for Rangers

As with cadets, interested applicants for rangers must be Kenyan citizens and holders of a Kenya National Identity Card or passport. 

The applicants must be aged between 18 and 26 years as well as be physically and medically fit with no criminal record. 

Academic qualifications include a D (plain) in Kenya Certificate of Secondary Education. 

Unlike cadets, rangers must hail from the county of recruitment. 

“Successful candidates will be required to undergo mandatory paramilitary training for a period of six months and thereafter be deployed to the field,” KWS stated.

“National Youth Service (NYS) graduates who meet the above requirements are encouraged to apply.”

Kenya Wildlife Service rangers.

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KWS

How to Apply

Interested applicants for the positions of cadets and rangers are directed to obtain the prescribed application form free of charge from either the nearest KWS National Park/ Station or download it from the KWS website www.kws.go.ke

You must carry with you and present the filled prescribed application form together with the attached academic certificates, testimonials and National ID Card/Passport at the recruitment centre indicated in the application. 

“Applicants must also present original academic certificates, testimonials and National ID Card/Passport at the recruitment centre for verification,” KWS directs.

The Kenya Universities and Colleges Central Placement Service (KUCCPS) has reopened the placement portal to allow KCSE 2023 candidates to review and revise applications made in February and March.

In a notice dated Wednesday, March 19, it was noted that the portal would also be accessible to students who had not made their applications during the first window.

According to the placement body, the portal will be open till April 4, 2024.

"The KUCCPS application portal is open for the First Revision of applicants’ choices for placement to Universities, TVET Institutions, Teacher Training Colleges (TTCs) and the Kenya Medical Training College (KMTC).

KUCCPS CEO Alice Wahome before a Parliamentary committee on February 20, 2024

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Parliament of Kenya

"The target is applicants who have not secured any of their choices submitted in February/March 2024 and 2023 KCSE examination candidates with C+ and above who did not apply for Degree Programmes during the February/March 2024 application period," read the notice in part.

Kenyans who sat for KCSE from 2000 to 2023 and are yet to join a tertiary institution have also been advised to take advantage of the application window and choose a course of their choice at TVET institutions across the country.

How to Check & Revise Applications

All students who made their applications during the first window have been advised to check on the status of their applications by accessing the student portal: students.kuccps.net.

Should a student find that their application to a particular course and university was not successful, they can apply for another course based on their KCSE results and the cutoff points.

On the other hand, those who are making their applications for the first time can also access the student portal to apply for the same.

Worrying Trends Reported During the First Applications

According to KUCCPS Chief Executive Officer Agnes Mercy Wahome, very few students who qualified for TVET courses submitted their applications.

688,591 students attained mean grades between C and E and qualified for a course in TVET institutions. Many students were focusing on degree courses. 

"The CEO also observed that some programmes offered in some of the institutions were not up to date with the current trends. She cited Irrigation System Installation courses, which none of the institutions offered despite Agriculture being a priority sector in the Government’s Bottom-Up Economic Transformation Agenda (BETA).

"Media and communication courses in some of the institutions did not include drone photography or videography that many events require nowadays," read the statement dated March 8.

Candidates from St Anne's Girls High School, Lioki, in Kiambu County sit for KCSE papers on November 6, 2023.

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KNEC

A homestay is a home-owner-occupied private residence which also offers accommodation to a few paying guests as its secondary purpose.

Homestays are increasingly popular for guests who are travelling for a longer period and are aiming to experience a homely environment during the duration of their stay.

Additionally, guests who would like to experience Kenya's culture first-hand while staying in the country also form a large audience for the homestays.

Following recent regulations, home owners who want to offer the homestay experience are required to obtain a license from the Tourism Regulatory Authority (TRA).

A collage of a container Airbnb in Nairobi

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moon Hough

The first requirement you will be required to fulfill is provide a National Identity Card of the homeowner to the TRA.

Secondly, an individual will be required to have a KRA Pin of the enterprise for which they seek to acquire a license. The last document required will be a Certificate of Good Conduct.

The primary purpose of these documents is to authenticate the owner's identity and act as a measure for ensuring the safety of guests staying at the private residence.

After presenting the documents, the owner is then required to pay license fees which vary depending on the category of the homestay.

However, across the three categories of homestays: Economy, Standard and Executive an application fee of Ksh500 is required.

Specifically, the annual license fee for an Economy homestay is Ksh1,000 with the same fee applying to the renewal.

A license for a Standard homestay costs Ksh2,000 which is valid for an year. The fee is the same for renewing the license.

Finally, an Executive homestay license costs Ksh3,000 for the annual license.

The first step in the application procedure is signing up and filling a form on the Tourism Regulatory Authority's website.

From here, the next step is paying the fee through TRA.

After completing the payment to the TRA, the application will be verified by the authority and the license if granted, will be sent to the applicant’s email.
 

A holiday home in Nanyuki available on the Airbnb application.

File

Have you ever wondered why there are usually gaps on a road constructed on a bridge or an overpass?

Well, the gaps are referred to as expansion gaps. Just as the name suggests, the gaps are usually incorporated in the designs of a bridge and allow for the expansion and contraction of the road.

Usually, during the day, when it is sunny, parts of the bridge including the road will expand hence the space provides room for that.

Conversely, during a cold day, the road will contract, and that gap provides for that movement, ultimately safeguarding the entire structural integrity of the bridge.

A photo of the Changamwe interchange at the Mombasa - Mariakani road under construction

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KeNHA

On the other hand, engineers also install a joint in between the gaps to ensure that the expansion and contraction are done effectively.

"A gap is provided to allow for expansion and contraction due to temperature changes. It can be between a bridge girder and an abutment or between girders (iron or steel beam) that are not continuous.

"Expansion joint is a device installed at the expansion gap to ensure smooth expansion and contraction and to allow automobiles and other vehicles to run smoothly on the bridge. It is mainly made of steel or rubber," KeNHA explained in its bridge manual.

Maintainance

Additionally, KeNHA adds that the gaps have to be cleaned at all times to ensure the bridge is efficient.

This, therefore, requires its officials to conduct inspections regularly and check that there are no defects. The gaps often tend to be damaged given the force from the movements of the vehicles along the bridge.

"Poorly installed expansion joints and uneven settlement of any part of the bridge may cause level differences thus, water ponding," KeNHA expounded.

The guidelines also state that abnormalities within the gap have to be reported to engineers within 24 hours.

"Bridges inspected during dry weather could be revisited (as part of a safety inspection) during the next spell of rain to check whether expansion joints or drainage are leaking/blocked and adequate," the bridge manual added.

A photo collage of KeNHA engineers inspecting a bridge using the Bridge Inspection Vehicle (BIV) on March 10 2023.

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KeNHA

As preparations for the 2024-2025 budget get into top gear, there are tax measures the government is eying to implement in the upcoming financial year.

While some of the measures are aimed at helping the government achieve its revenue targets in the Ksh4 trillion budget, other measures include reducing the Corporate Tax rate.

Kenyans.co.ke highlights four major tax measures that could be introduced from July as highlighted in the Medium-Term Revenue Strategy.

Job seekers in Nairobi

File

Reduction of Corporate Tax

Many corporate entities, especially, international ones will benefit significantly as the government aims to reduce the current corporate tax rate from 30 per cent to 25 per cent.

This is usually a tax that is imposed on profits that are made by companies.

The Why: As explained in the strategy document, the proposal aims to encourage investors to come and set up shop in the country and help the country regain its competitiveness as the preferred investor hub in the region and the continent.

Ripple Effect: The government projects that the move will create more employment opportunities as investors set up their companies in the country.

"Studies have shown that high rates of corporate income tax discourage foreign direct investments and encourage investors to lobby for lower rates or tax exemptions. Further, high rates contribute to increased tax planning and reduced compliance by taxpayers, which is the case in Kenya," the government explained.

Remove VAT Exemptions

As outlined in the strategy document, the government will remove VAT exemptions on processed goods. Already, there are proposals to introduce a 16 per cent VAT on bread and milk.

The Why: The government notes that the move is aimed at helping the government meet its revenue targets.

Ripple Effect: Should the government implement this measure the cost of some commodities is expected to rise in the long run and ultimately increase the cost of living.

"However, the government will develop an appropriate strategy to address the tax burden on essential goods and services. The review will also take into consideration exemptions and zero rating that are granted on a reciprocal basis and as per international conventions to which Kenya is a party," Treasury highlighted in the strategy document.

Collage photo of a loaf of bread alongside milk in a supermarket aisle in Kenya

Kenyans.co.ke

Carbon Tax

This is a new tax the government is eyeing to introduce in various sectors that have had negative effects on the environment.

Specifically, this tax targets companies and the motor vehicles industry, especially vehicles that run on fossil fuel. According to the plan the tax is proposed to be based on carbon content released in the air.

For vehicles, the government will implement this tax by increasing the excise tax on vehicles that use Super Petrol and Diesel.

The Why: The government explains that the move is aimed at protecting the environment and encouraging the adoption of green energy and electric vehicles.

Ripple Effect: For starters, this move will make vehicles more expensive for Kenyans. On the other hand, companies may want to minimize the risks of high taxation by increasing the costs of their goods and reducing their workforce.

"Motor vehicle emissions contribute to air pollution which also has significant health effects. The following will be evaluated within the scope of a carbon tax: Gradual increase of excise taxes on vehicles that use fossil fuels to address environmental damage and negative health effects. The increase will be phased over the Strategy on imported vehicles.

"Review the current taxes on electric vehicles that are environmentally friendly and support the transition to a green economy," read the strategy document.

Traffic jam witnessed along busy Uhuru Highway in Nairobi in 2019

Simon Kiragu

Kenyans.co.ke

VAT on Education Services

On the other hand, the government is mulling over introducing VAT on some education services that do not touch directly on the education of students.

This includes services like swimming that are offered in private schools and high-end learning institutions.

The Why: The Treasury explains that some of the schools have been enjoying exemptions for services that are vatable. This move is also expected to help the government meet its revenue targets.

Ripple Effect: This move may see some private institutions raise their fees to factor in the payment of the new tax.

"The exemption from VAT on education that includes all services provided by schools creates unfairness as some services like swimming when offered out of school are vatable. To remove this discrimination, there is a need to impose VAT on the additional benefits," Treasury stated.

A photo of a swimming pool within an Estate in Nairobi County.

Kenyans.co.ke

File

If you are looking to own several vehicles united with rhyming, uniform number plates (for instance a specific number like 024R), you can. 

In recent months, a section of motorists debated the likelihood of applying for specific number plates in line with their tastes such as birthday or wedding anniversaries.

Speaking to Kenyans.co.ke, a representative at the National Transport and Safety Authority (NTSA) explained that Kenyan motorists are at free will to apply for three different types of number plates.

First up, any individual can apply for the normal number plate at a fee of Ksh3,050 through their eCitizen account.

Former transport Cabinet Secretary Kipchumba Murkomen inspecting the issuance of digital number plates at NTSA offices in Nairobi on September 22, 2023.

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Kipchumba Murkomen

The special number plate, on the other hand, costs Ksh30,000 and is guided by an individual preferring a certain set of letters or numbers. For instance, if you have three cars and want all the plates to end with 024R.

A personalised number plate, however, involves an individual choosing a different pattern for their number plate which may be their names or names of their companies. That type of number plate costs Ksh1 million in the application stage.

Locally, former Nairobi Governor Mike Sonko and former footballer McDonald Mariga are famously known for having their names on their plates.

"You can either have a normal number plate, a specialised number plate, or a personalised number plate," our source explained.

"For instance, if you want to maintain 024R, which is a preference that has a meaning to you such as your birthday, you should apply for a special number plate which costs Ksh30,000."

"If the number you are applying for has already been taken, the system will show you it is not available. You will decide to wait for the following series of number plates," our source added.

How to Apply

• Applicants are advised to log in to eCitizen and proceed to the NTSA portal.
• While on the portal, select a motor vehicle and click on view.
• On the resultant tab, click on the motor vehicle services tab and select a reflective plate, from there you select the number plate type and collection.
• The type of number plate you select can be either of the three; normal, special or personalised.
• From there, attach the required documents, all in PDF format then tick the declaration box.
• Click on submit to pay reflective plate and select complete.
• A notification to collect the plate will be sent to you via SMS.

A photo of samples of the new generation number plates displayed during their launch in October 2022.

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Ministry of Interior

In 2023, through the Finance Act, the government introduced the Tax Amnesty Program which waives accrued penalties for taxpayers.

The deadline was scheduled for June 2024 and taxpayers have been urged to take advantage of the open window.  

Per the guidelines from the Kenya Revenue Authority (KRA), the amnesty applies to any person with penalties but has no principal taxes owing for periods up to December 31, 2022.

It also applies to those who have principal tax accrued up to December 31, 2022 and have paid outstanding principal tax debt by June 30, 2024.

"All taxpayers who do not have principal tax due for periods up to December 31 2022 but have penalties and interest due shall qualify for the tax amnesty. The amnesty under this category shall be automatic and taxpayers will not be required to apply," read part of the guidelines.

Residents of Nakuru lining up to seek services from the Kenya Revenue Authority mobile services on November 24, 2023

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KRA

Additionally, all taxpayers with tax liabilities that are under any dispute process will qualify for the amnesty as long as they meet the conditions of the amnesty.

However, KRA outlines that there are some exclusions from the program, this includes interest and penalties imposed under Section 85 of the Tax Procedures Act 2015.

"If the Commissioner has applied a tax avoidance provision in assessing a taxpayer, the taxpayer is liable for a tax avoidance penalty equal to double the
amount of the tax that would have been avoided but for the application of the tax avoidance provision" reads part of the Act.

Also, those with penalties and interest relating to tax debts accrued for the periods after December 31, 2022, shall not qualify for the amnesty.

How to Apply on iTax

This is a six-step process which begins with the applicant logging into iTax.

The next step is proceeding to the Debt and Enforcement tab and selecting the iTax Amnesty Application.

Under section A select the respective tax obligations and the amnesty details for the specific obligation will be populated.

If undisputed click 'add all' for all obligations and move on to section B.

Section B proposes the number of instalments and instalment frequency. The system will then compute the amount per instalment. Click to agree with the terms and conditions and then click again to submit in order to complete the process.

The iTax system will then generate an amnesty application acknowledgement with amnesty and payment plan details.

In the fifth step, you will be required to generate the payment slip for the respective tax obligation and tax period through iTax and proceed to pay through a bank transfer or the consolidated Paybill number 222222.

Finally, once the payment is received, the iTax system will vacate respective penalties and interest accrued for the period and an amnesty certificate will be issued.

Kenya Revenue Authority offices

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KRA

Seme MP James Nyikal who doubles up as a Member of the National Assembly's Health Committee has explained why medics receive hefty allowances in comparison to other civil servants.

Speaking to journalists on Monday, Nyikal noted that the government instituted bigger allowances for medics to compensate for the occupational hurdles they face within their jobs such as longer shift hours.

According to the MP, the medics are prone to hazards such as exposure to health risks which they need to be compensated for.

He also explained that the medics salary structure was carefully put together to include allowances instead of having an inflated basic pay. 

This he said, was done to ensure that medics' salaries don't disrupt the civil service wage structure. 

Doctors strike outside Afya House in Nairobi.

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Anadolu Agency

Nyikal narrated that the alternative of including the allowances created a balance between maintaining the structure for civil servants' basic pay and also compensating the doctors fairly.

“We agreed that increasing their pay would destablise in the salary structure, let's give them allowances to compensate them for that time,” stated Nyikal

However, he has noted that the allowances have continued to be slashed despite the push to have them increased.

Nyikal has also faulted the delays in posting interns citing that this affects the career progression of doctors as they are not eligible for licenses to practice without having being interns.

A Collective Bargaining Agreement (CBA) signed in 2017 between doctors and the Health ministry which has since borne a bone of contention regarding its implementation outlines the compensation as follows:

A senior deputy director either in medical, dental or pharmaceutical services, who is the highest paid doctor should be paid a maximum of Ksh 282,000 basic salary plus Ksh 230,000 as allowances.

Medical, and dental officers and pharmacists were expected to be paid a maximum of Ksh68,000 as a basic salary and Ksh155,000 in allowances.

The minimum basic pay for the lowest-paid doctor is Ksh54,000. 

KMPDU Secretary General Davji Atellah (right) speaks during his submissions to the Senate Committee on Health.

Parliament of Kenya