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The current regime has embarked on increasing the tax base to collect more revenue, as the government moves towards its vision of ensuring it relies on revenues raised instead of loans to finance its operations.

Kenya Revenue Authority (KRA) is the constitutionally mandated body responsible for collecting taxes and ensuring all eligible persons contribute their fair share towards nation-building.

To that end, the taxman spells out tax offences and various penalties that each of the infractions attracts.

According to a guideline published on the KRA website, late filing of Pay as You Earn (PAYE), attracts a penalty of 25 per cent of the tax due, Ksh 10,000 or whichever is higher.

Those who pay PAYE tax late, on the other hand, attract a penalty of 5 per cent of the tax due and an interest of 1 per cent per month.

Times Towers in Nairobi which houses Kenya Revenue Authority’s head office. The photo was taken on Thursday, February 20, 2020.

Kenyans.co.ke

On the other hand, for those who fail to deduct Withholding VAT and Withholding Rental Income Tax, KRA requires they pay 10 per cent of the tax due.

For those who make late Withholding Tax (Withholding Income Tax Withholding VAT, Withholding Rental Income tax) payments face a penalty of  5 per cent of the tax due.

Meanwhile, late filing of Monthly Rental Income Tax returns (MRI) attracts a penalty of 5 per cent of the tax due, Ksh2,000 or whichever is higher for individuals. Meanwhile, the offence attracts a penalty of 5 per cent of the tax due or Ksh20,000, whichever is higher for non-individuals. 

By the same token, for the offence of late payment of MRI, a person faces a penalty of paying 5 per cent of the tax due and an interest of 1 per cent per month.

Conversely, Kenyans who pay Stamp Duty late are required to pay 5 per cent of the duty payable. While the late filing of the Excise Duty returns attracts a penalty of 5 per cent of the tax due, Ksh 10,000, whichever is higher.

Late payment of Exercise Duty Tax attracts a penalty of 5 per cent of the tax due and an interest of 1 per cent per month.

Further, the late filing of VAT Returns attracts a penalty of 5 per cent of the tax due or Ksh 10,000 whichever is due. Similarly, the late payment of the VAT tax attracts a penalty of 5 per cent of the tax due and an interest of 1 per cent per month.

The late filing of Income tax company or partnership returns attracts a penalty of 5 per cent of the tax due or Ksh20,000 whichever is higher.

Further, the late payment of Income Tax for non-individuals attracts a penalty of 5 per cent of the tax due and an interest of 1 per cent monthly.

KRA further specifies that non-residents found culpable of late payment of Income tax are required to pay 5 per cent of tax due and an interest of 1 per cent each month.

Conclusively any KRA PIN-related offences attract a Ksh2,000 penalty for each offence.

A file image of the reception area at KRA offices in Nairobi.

KRA

Allocation of houses under President William Ruto's Affordable Housing Programme will be based on three major salary and income scales.

In the revised Affordable Housing Bill, which is set to be debated in the Senate in the coming days, the houses will be categorised into Social Housing Units, Affordable Housing and Affordable Middle Class.

Social Housing Units

These housing units will be the cheapest and will target Kenyans who earn Ksh20,000 and below. This also includes Kenyans in the informal sector who earn below Ksh20,000 monthly.

Affordable houses constructed in Mombasa County.

PCS

According to the plan, the houses will be the smallest, measuring at least 18 square metres.

On the other hand, the State Department of Housing details that the houses will range between one to three-room houses and will cost between Ksh756,000 to Ksh1.5 million.

Affordable Housing 

Houses categorised under this category will be allocated to Kenyans who earn between Ksh20,000 and Ksh149,000.

In terms of size, the houses will be bigger than those in the Social Housing Units category and will measure at least 30 square metres.

These houses will either be studios, two-bedroom or three-bedroom apartments. Kenyans will buy these houses from Ksh864,000 to Ksh2.5 million, depending on quality variation.

Affordable Middle Class

"An affordable middle-class housing unit with a plinth area of at least 80 square metres for middle to high-income housing is targeted at persons whose monthly income is over Ksh149,000," read the bill in part.

These houses will either be two-bedroom or three-bedroom units and will cost between Ksh3.8 million to Ksh5.1 million.

Requirements for Allocation of a House

Apart from the use of the salary/income scale, the government will require Kenyans to have requisite documentation before being allocated houses. One of the mandatory requirements includes a national identity card.

"An application made under subsection (1) shall be accompanied by a proof of requisite deposit as may be prescribed by the Cabinet Secretary; a copy of the incorporation certificate in the case of a body corporate; a copy of Kenya Revenue Authority personal identification number certificate and tax compliance certificate.

"In determining the allocation of an affordable housing unit under this section, the Board shall give preference to marginalised persons, vulnerable groups, youth, women and persons with disabilities," read the Bill in part.

Affordable houses constructed in Ongata Rongai.

Photo

Kings Serenity

The Kenya Revenue Authority (KRA) has unveiled a user-friendly electronic Tax Invoice Management System (eTIMS) to ease customer experience when transmitting their invoices to the taxman.

In a statement on Monday, March 4, the authority indicated that the new system covers all businesses both large and small including those in the informal sector.

The users who are non-Value Added Tax (VAT) registered taxpayers will be able to generate and transmit their invoices using the platform.

"Kenya Revenue Authority (KRA) would like to remind the public that all persons carrying on business including those in the Informal Sector and Small Businesses are required to electronically generate and transmit their invoices to KRA via the electronic Tax Invoice Management System (eTIMS)," read the statement dated March 4 in part.

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

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KRA

How it Works

According to KRA, eTIMS Lite will be accessible through eCitizen platform as well as USSD code, where Kenyans will be able to acquire services by dialling *222#.

The targeted business people and traders can also access the simplified system by logging onto www.ecitizen.kra.go.ke for the web-based invoicing solution.

To boost usage, the taxman has made concerted efforts towards publicity, awareness and tax literacy through continuous stakeholder engagement and taxpayer education targeted at players in the informal sector.

The targeted taxpayers include farmers, jua kali traders and artisans amongst others.

"KRA wishes to invite taxpayers and representative bodies who may experience challenges adopting the existing solutions to reach out to further explore solutions tailored to cater to their specific needs," added the Authority.

"One such consideration is the reverse invoicing solution where a seller can/may give consent or authority to the buyer to issue invoices on their behalf."

The system will also give sellers the flexibility of allowing buyers to issue invoices on their behalf.

Small business owners and those in the informal sector are expected to file their taxes on a monthly basis.

Traders selling goods at Kikuyu Market in Kiambu County

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Kikuyu Market

On February 29, 2024, the Kenya National Bureau of Statistics (KNBS) announced that the cost of electricity  increased by 37 per cent in 2023, with the price projected to increase over the coming years.

To put it into perspective, the price of 50 Kilowatts (KW) of electricity increased by 42.7 per cent while the price of 200 Kilowatts rose by 31.8 per cent. 50 KW in this case, can power a water heating system, cooking, and washing machine among other household appliances.

Besides high electricity prices, Kenyans have also had to contend with frequent blackouts over the last year.

These factors combined, have precipitated a desire amongst Kenyans to switch to solar power systems with one eye on saving costs.

Several Kenyans have already resorted to this, installing solar systems in their houses which serve as a much needed mainstream option or alternative.

A solar-photovoltaic plant in Kitonyoni Village, Kenya.

Photo

James Butler

Requirements

Those seeking to install the system at their house will be required to consider the cost of setting up.

Among the equipment needed includes;  photovoltaic panels (PV panels), a racking system, electrical wiring components, batteries, a charge controller, a power inverter and roof sealant. 

Some users also opt to install a heat sink and an energy metre.

Costs

Experts observe that the price of installing solar power is capital intensive, but this ends up being more beneficial in the long run considering the low maintenance costs.

"Solar power depending on the intended use can be expensive to install but once it's complete, maintenance is close to nil," electrical engineer James Ogutu stated in a past interview with Kenyans.co.ke.

For a standard household, users require a solar power system with a capacity of up to 5,000 watts on average. Most retailers charge Ksh100 per watt, translating to Ksh500,000 in installation.

Others, however, argue that the price can be lowered depending on the requirements needed. Hence the price can be reduced by half to cost around Ksh250,000.

"The cost varies because if one needs more power, it means more solar panels and batteries," Ogutu noted.

Observers, however, voiced concerns that the installation costs essentially lock out the poor households due to the  associated high cost. The systems albeit are more effective for users with low power connectivity.

Additionally, the systems come in handy during blackouts, hence most argue that it is a worthwhile investment,

To solve the issue of high installation fees, experts recommend users to purchase solar systems from companies that offer subscriptions for solar installation whereby one can pay a certain figure and after some time, they own the solar system.

Kenya Power Staff working on electricity lines

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News Projector

In recent days, the political scene has been dominated by debate over the proposed Farm Produce Tax which the government is seeking to introduce as part of its revenue strategy.

As detailed in the Medium-Term Revenue Strategy, the government has proposed to set the tax at a rate of 5 per cent of the total value of farm produce delivered to cooperatives and other organised groups.

In the document that was prepared by the Treasury, under the leadership of Cabinet Secretary Njuguna Ndung'u, it is proposed that the tax be effected between the upcoming Financial Year, 2024/2025 and 2026/2027.

Treasury explained that the tax was aimed at helping raise revenue for government programmes.

Treasury Cabinet Secretary Njuguna Ndung'u addresses a congregation in 2018.

Photo

AERC Africa

Treasury also added that the agricultural sector had been undertaxed over the years.

"The Kenyan economy remains highly dependent on the agriculture sector, contributing an average of 21.2 per cent of the GDP in 2022 and has the highest employment multiplier in the economy. Despite this, the sector's contribution to tax revenue is less than 3 percent indicating that the sector is undertaxed.

"The agriculture sector has unique challenges, including being weather dependent, perishability of the produce, the subsistence nature of the sector and inadequate tax literacy which makes the taxation of this sector difficult. In addition, the sector is highly informal, cash-based and characterized by the notion that the incomes generated from the sector are meagre and should not be taxed," read the strategy report.

Notably, the government anticipated resistance from farmers with the Treasury also outlining a strategy to address the concerns.

"To address these challenges, the government will intensify taxpayer education to ensure that taxpayers understand their role in nation-building and the need to pay taxes," the report added.

The Fallout

The proposed tax has seen a split in the Mt Kenya political leadership. Notably, a section of leaders from the ruling party including Gatanga MP Edward Muriu have stated that they will not support the government proposal.

The leaders explained that the tax would negatively affect a majority of their supporters given that the region's economy is highly dependent on agriculture.

Some of the food items that are produced in the region include; avocado, tea, coffee, and milk among others.

"As an MP, I can tell there is a problem with this proposal. We are the aggregators; the aggregators should be the farmers. These avocado taxes should be imposed on the consumers. The tax should be carried in by the exporter," the MP stated.

Following the unfolding storm, Deputy President Rigathi Gachagua promised that the government would relook the proposal.

Former Deputy President Rigathi Gachagua (left) and his wife Pastor Dorcas Rigathi (in red) at a coffee plantation on April 8, 2023

DPPS

On Monday, February 26, the Ministry of Health announced the extension of Social Health Insurance Fund (SHIF) deductions from March to July 2024.

Nakhumicha stated that the registration exercise would conclude on June 30 and members would commence enjoying benefits in the 2024/2025 financial year.

While revealing the new deduction timeline, the Health CS highlighted that all relevant stakeholders had been consulted, and the document would be presented to the Attorney General for gazettement.

The government also outlined plans to leverage Artificial Intelligence (AI) to enhance the efficiency of the proposed Social Health Insurance Fund (SHIF).

President William Ruto (right) holds the umbrella for Health CS Susan Nakhumicha while making their way to Syokimau, Machakos County on November 22, 2023.

PCS

The initiative aims to equip SHIF with real-time data on these activities, ensuring timely detection of loopholes previously exploited by unscrupulous individuals for fraudulent activities.

For those who had already registered for NHIF:

Individuals registered under the previous National Health Insurance Fund (NHIF) are required to re-register with the new Fund within 90 days from its effective date.

Current NHIF cards will remain valid until December 2024, as revealed by National Assembly Health Committee Chairperson Dr. Robert Pukose.

For parents: 

The Ministry of Health has mandated that all 7-year-olds must be registered for the Social Health Insurance Fund (SHIF) within 90 days, commencing from March 1.

"Within ninety days upon the coming into force of these regulations, every person resident in Kenya shall apply for registration as a member of the SHIF," the regulations state.

Residents assemble outside CDF offices in Githurai 45 to receive bursary forms in 2023.

Image KNA

For the Salaried and for those who are unemployed:

Under the new health insurance fund, employed Kenyans will have 2.75 per cent of their gross salary deducted monthly.

On the other hand, individuals with non-salary income will contribute 2.75 per cent of their household income annually, determined through means-testing by the Ministry of Health.

However, the monthly contribution shall not be less than Ksh300.

For Couples:

Couples will no longer be required to provide their marriage certificates during registration into the new Social Health Insurance Fund (SHIF), following a review by the Ministry of Health.

However, the government has justified its stance to impose additional charges on polygamous families for insurance.

"In the spirit of fairness and equality, it is appropriate for each spouse to make an additional payment. The household income encompasses the total income of all spouses," explained the Public Health PS.

These proposals come in light of the recent government schedule outlining the registration process for the new health insurance, scheduled to commence on Friday, March 1. However, clear guidelines for the exercise are yet to be provided by the Ministry.

A collage of two couples on their wedding day

Kenyans.co.ke

The Kenya Universities and Colleges Placement Service (KUCCPS) responded on Monday, February 26, to concerns raised by applicants experiencing challenges with the reflection of payments on the eCitizen platform.

Payments for course applications are made through the eCitizen platform, this is per the government directive that all payments be made to the 222222 pay bill.

Despite some applicants having made the payments and sent the transaction code, the system displayed an ‘error.’

It was realised that the payments took time to reflect on the eCitizen platform, prompting the placement service to devise a procedure for checking if the payments had been billed.

KUCCPS mobile payment displaying 'error'

Photo

Dickie Kiage

How to Make KUCCPS Payment

Click on the payment link displayed on the KUCCPS portal.

Choose the mobile money option (M-Pesa), proceed to pay the bill and enter 222222 then followed by the account number issued by KUCCPS.

Applicants are required to make a payment of Ksh1500 and enter their mobile money PIN to complete the transaction.

Once the transaction is successful, the applicant will receive a mobile money confirmation message on your phone.

How to Check Payment Has Reflected on eCitizen

Step 1: Using your mobile phone, Dial *222#
Step 2: Select Option 6 'Check Payment'
Step 3: Enter the Payment Reference (Account) used and send
Step 4: Enter the transaction code and click 'send.'
Step 5: If you have paid and entered the details correctly, you will be informed that the invoice has been paid. 

Once the payment reflects on the eCitizen platform, you can continue with the application.

KUCCPS Chief Executive Officer Dr. Agnes Mercy Wahome gives an address in July 2023.

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KUCCPS

The Kenya Universities and Colleges Central Placement Service (KUCCPS) on Monday, February 26, announced the new deadline for applications to give more students time to secure their dream schools and career paths.

The extension has been prompted by the widespread technical glitches on the platform, which have hindered students from completing their applications. Despite these challenges, KUCCPS has assured students that efforts are underway to rectify the issues and ensure a smooth application process.

Students have been urged to make their applications before March 4. As the applications continue, Kenyans.co.ke has compiled a list of certificate and diploma courses charging up to Ksh60,000.

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

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Parliament of Kenya

Diploma Courses and Institutions Offering Them

For students seeking to pursue a diploma in Banking and Finance, the University of Embu TVET Institute is offering the course at Ksh60,000.

The institution is also offering a diploma in Accountancy for Ksh60,000. Additionally, one can pursue a diploma in Human Resource Management at the Embu-based institution for Ksh60,000.

Moreover, Entrepreneurial Agriculture is being offered for Ksh60,000. And for those wishing to pursue a career in Counselling (Disaster Management and Trauma Counselling Option), you will similarly find the course going for Ksh60,000.

Meanwhile, the Kenya Institute of Surveying and Mapping is currently offering diplomas in Land Surveying and Cartography, each priced at Ksh57,800.

At the same institution, students can undertake a diploma in Photogrammetry and Remote Sensing.

The Kenya Water Institute has a diploma in Water Resources Management and Technology at Ksh59,6000. A diploma in Water and Waste Water Laboratory Technology also goes for the same Ksh59,600.

At the same institutions, students can apply for a diploma in Information Communication Technology for Ksh59,600.

At Masinde Muliro University of Science and Technology, students have the opportunity to apply for a diploma in Disaster Management and a diploma in Security and Intelligence Studies, both offered at Ksh60,000 each.

Certificate Courses and Institutions Offering Them

For certificate courses, students can apply for a Water Engineering certificate at the Kenya Water Institute for Ksh56,000. It also offers a certificate in Information Communication Technology for Ksh56,000.

Meanwhile, the University of Embu TVET Institute offers a certificate in Project Management of Ksh52,500. It also offers a certificate in Supply Chain Management for Ksh52,500.

The Kenya Training Institute is also offering various certificate courses which will cost the student Ksh55,800. Some of the courses include Supply Chain Management, Tourism and Travel Management Level 5, and Tourism Management.

Others include Tour Guiding and Travel Operations, Road Transport Management and Maritime Transport Logistics.

University students during a past graduation ceremony

Photo

With the Kenya Meteorological Department projecting high temperatures in Nairobi and most parts of the country for the coming weeks, most motorists are prone to making common mistakes which lead to increased fuel consumption.

Some of the common mistakes that motorists make include; the use of Air Conditioning (AC) and driving with all windows open.

While many motorists use ACs or roll-down windows to regulate the temperatures inside a vehicle, car experts warn that these tendencies can lead to increased fuel consumption if the two are not done properly as explained below.

Air Conditioning vents in a Toyota car.

Photo

Autochek

Air Conditioner 

While the use of ACs during the hot weather is recommended, it is always advisable to roll down the windows of a vehicle for some minutes before turning on the AC.

This is informed by science given that rolling down windows before the use of ACs allows for the hot air in the car to get out hence making the AC more efficient when turned on.

"Drive with the windows open for a short time before using the AC. Letting hot air out of the cabin first will put less demand on the AC and help your vehicle cool faster.

"Don't idle with the AC running before driving. Turn the AC on after you begin to drive or after airing out the cabin briefly. Most AC systems will cool the vehicle faster while driving" the US Ministry of Energy states in an advisory.

On the other hand, motorists are also advised to ensure that they set the AC temperature to the lowest level as possible.

Rolling Down Windows

Driving while windows are completely rolled down can increase the consumption of fuel.

This is because when windows are rolled down, there will be a dragging effect owing to the movement of air inside the vehicle, hence more energy is needed to move the car.

Therefore, one should only roll down the windows when they are driving at a slow speed. The use of AC is recommended when driving on highways where most speed limits are past 100 kilometres per hour.

Additionally, motorists are advised to park their vehicles in shades to avoid key components such as the cabin from heating up.

Traffic jam witnessed along busy Uhuru Highway in Nairobi in 2019

Simon Kiragu

Kenyans.co.ke

Students who scored Grade D - (minus) in the Kenya Certificate of Secondary Education (KCSE) and below have a chance to apply for the career of their choice under the artisan programme that will equip them with the requisite skills needed for the job market.

The courses are offered through the Kenya Universities and Colleges Central Placement Service (KUCCPS) portal whereby students can apply before the stipulated deadline lapses. 

In the case of the 2024 KUCCPS application, students have until February 26, 2024, to apply.

Students are granted the chance to apply for the course based on the grade they scored during in the KCSE examinations. Artisan courses are offered for students who scored D - and below.

Media students at Arizona International College

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Arizona International College

A spot-check by Kenyans.co.ke reveals that the most expensive course is Trade Test Grade II & I in Electrical Wireman offered at Kenya Industrial Training Institute which costs Ksh83,500.

This is followed by the Food and Beverage Production (Culinary Arts) Level 4 course offered at Railway Training Institute which averages Ksh72,900.

The majority of the courses cost an average of Ksh67,189, save for a handful. The cheapest course offered in the Artisan programme is an electrical course, Grade III Electrical Installation, offered by Railway Training Institute at a cost of Ksh45,700.

This is also similar to NVCET in Refrigeration and Air Conditioning offered at the same institution. The program trains students to design, install and maintain cooling systems in buildings.

Students seeking to upgrade their skills in the plumbing sector will be accorded a chance to learn Grade III in Pipe Fitting and Plumbing by Kenya Institute of Highways and Building Technology at Ksh49,420.

Additionally, those seeking to study how to install cooling systems at the Kenya Institute of Highways and Building Technology will be required to pay Ksh49,420.

Students who wish to specialise in wastewater technology, water supply and water reading can pursue Artisan in Sewerage Operators Course at Kenya Water Institute. They will be required to part with Ksh56,000.

Similarly, the Water Operators course at the Kenya Water Institute costs Ksh56,000. At the same institution, the Water Supply Operators program is also offered at a fixed rate of Ksh56,000.

KUCCPS Chief Executive Officer Agnes Wahome

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KUCCPS