SEO Article

Why Kenyan Traders Are Ditching Dollar For Chinese Currency

A photo collage of Kenyans walking in Nairobi CBD and a person holding Chinese Yuan.
A photo collage of Kenyans walking in Nairobi CBD and a person holding Chinese Yuan.
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Brookings Institutions

The Kenya Bankers Association (KBA) on Wednesday, August 2, revealed that Kenyan traders are increasingly using the Chinese Yuan instead of the Dollar to settle payments when making purchases. 

Habil Olaka, CEO of KBA in an interview with Xinhua revealed that one of the main reasons for the shift was because of rising Sino-Kenyan trade ties.

With many Chinese projects in the country, KBA noted that Yuan was emerging as an alternative currency to the US dollar in settling financial transactions involving trade between Kenya and China.

"What tends to happen between two countries trading, is that they use a currency that is readily available in their countries," Olaka explained.

A photo of a bank teller holding a US dollar and Ksh1000 notes.
A photo of a bank teller holding a US dollar and Ksh1000 notes.
Photo

Kenyan wholesalers and retailers also get their merchandise from the second-largest economy in the world, making the Yuan a favourable settlement currency. 

The KBA CEO made the revelations when he was leading the launch of the 2022 Kenyan Banking Sector Total Tax Contribution study by KBA.

As the country continues to grapple with dollar scarcity, Olaka revealed that most local commercial banks had a yuan trading facility that made the Chinese currency readily available.

With trade between Beijing and Nairobi continuing to grow, KBA explained that many traders were finding the yuan as the appropriate currency for trade.

In the past, many traders were using the dollar but using the Yuan, significantly reduces transaction costs since it eliminates the need for multiple conversion of currencies.

To emphasise the rising popularity of the Chinese yuan, KBA noted that the majority of banks in Kenya had opened Chinese desks.

“This is in order to serve the growing Chinese business community in the East African country,” Olaka was quoted by Xinhua.

The popularity of the Chinese yuan started gaining pace in 2016, when former President Uhuru Kenyatta's administration revealed it would start borrowing directly in the Chinese Yuan and other foreign currencies to reduce reliance on the dollar.

At the time, the Treasury revealed that loans from China were received in yuan, the Ministry then had to wire the money through a bank that sells it in dollars and does a similar conversion when making payments, incurring currency losses.

The yuan is projected to continue gaining popularity over the dollar as China continues to be the country’s biggest trading partner.

According to research done by Carnegie in 2022China accounts for 16 per cent of Kenya’s total trade volume far ahead of the European Union (14 per cent), and the United States (4.5 per cent).

“In 2021, China was Kenya's main import partner. Imports from China amounted to roughly Ksh441.4 billion,” Statista further revealed how China was becoming the country of choice for Kenyan traders.

Traders transacting with China usually import electrical machinery, spare parts, railway and trainway locomotives, iron and steel, and vehicles.

President William Ruto meets Liu Yuxi, Beijing’s special representative on African affairs, in Nairobi on Monday, September 12, 2022.
President William Ruto meets Liu Yuxi, Beijing’s special representative on African affairs, in Nairobi on Monday, September 12, 2022.
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South China Morning Post

HELB Launches New Website for Loans; How to Apply

Students getting services at HELB offices
A photo of students getting services at HELB offices
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HELB

Education Cabinet Secretary Ezekiel Machogu on Monday, July 31 unveiled the new university funding model as directed by President William Ruto.

Machogu launched the Higher Education Financing Portal that will allow university and TVET students to access funding from the government.

"Since the presidential directive on May 3, 2023, on the roll-out of the new funding model, the government has developed and completed the Higher Education Financing portal to receive applications for scholarships, bursaries, and loans for university and TVET students," the CS stated.

It is a new way of providing financial support to students enrolled in Universities & TVET institutions to ensure every Kenyan student is assisted according to their level of need.

President William Ruto (center) and Education CS Ezekiel Machogu durng a visit of the  Kisii National Polytechnic Digital Empowerment Centre on March 23, 2023.
President William Ruto (center) and Education CS Ezekiel Machogu during a visit to the Kisii National Polytechnic Digital Empowerment Centre on March 23, 2023.
PCS

The CS further explained that all continuing students under the Higher Education Loans Board (HELB) will not be affected by the new funding model.

“For the first time, students whose households are at the bottom of the pyramid shall enjoy equal opportunities in accessing university and TVET education. Out of the 2022 KCSE graduates, over 45,000 university students and 42,000 TVET students categorised as vulnerable and extremely needy, will be fully funded under the Government Scholarships and Loans," he added.

In May, Ruto explained that the new model does not increase university fees adding that the government shall increase the funds allocated to learning institutions.

The president added that the new model will categorise the students into three, the vulnerable, the less vulnerable, and the able to receive funding.

"Universities and TVETS will no longer receive block funding in the form of capitation based on a differentiated unit cost," Ruto added.

How to Apply
Students can access the platform through hef.co.ke to enjoy the various services offered.

"Students who require funding must make formal application through the Higher Education Financing portal, accessible at www.hef.co.ke," Machogu stated.

The platform has consolidated various services about education for students in higher institutions of learning.

Once on the platform, you will notice the various services on the dashboard and the account log-in and student registration tabs.

The platform is for applications for loans by new students who are joining the university or college in September 2023. 

Users can then fill in their details including education qualifications, bio details such as ID number and secondary school index number, and addresses. 

All these details will be required under the Student Registration tab.

A photo of university students during a graduation ceremony in Kenya
A photo of university students during a graduation ceremony in Kenya
Photo
Daniel Wesangula

Why Huduma Namba Will Now be Optional

Former President Uhuru Kenyatta (left) and his successor William Ruto sign up for Huduma Namba in 2019
Former President Uhuru Kenyatta (left) and his successor William Ruto sign up for Huduma Namba in 2019.
PSCU
DPPS

ICT Cabinet Secretary Eliud Owalo has announced that the government will not force Kenyans to get the digital identity card, walking away from the directives of the previous regime.

The identity card, previously referred to as Huduma Number, was supposed to replace the current identity cards which the government argues is old-fashioned.  

But in a move seen to encourage compliance, the state now wants people to decide whether they want the cards or not. Owalo has noted that it is not the role of the government to force people to register, instead, the decision should be left to Kenyans to decide. 

A section of Kenyans had expressed reservations with the plan, arguing that a new card could just be issued with current numbers without overhauling the system

owalo.
ICT Cabinet Secretary Eliud Owalo meeting the leadership, management and staff of the National Communications Secretariat on July 3, 2023.
Facebook
ELIUD OWALO

“We will not force any Kenyan to take a digital identity. The honours will be in you to decide whether you want to consume govt services through digital identity based on your biodata or you want to physically visit govt offices,” Owalo noted.

"We need virtual means through which the government can confirm you are who you claim to be. It will be upon you now to decide whether you want to take it."

Owalo added that it will be upon Kenyans to decide whether they want to be identified digitally or go on with the old system.

Initially, the government had planned to phase out the current generation of identity cards for a new one that would merge all the government-issued documents including birth certificates, NHIF numbers, and NSSF numbers among others.

“The government is deliberating the implementation of a civil registration and vital statistics system that meets the imperatives of a new digital era,” Owalo stated.

The programme stalled after several glitches that saw former President Uhuru Kenyatta's administration abandon the plan after billions of taxpayer money were spent.

Kenya Kwanza government revived the plans in early 2023 and has not given clear guidelines as to when the exercise will be rolled out.

The ministry has not also indicated whether the data that was collected during the mass registration exercise will be used to process the cards.

“The new system must be able to assign unique personal identification numbers at birth to all persons born in Kenya,” Owalo noted.

A person holding the new Huduma Namba Card unveiled on Tuesday, October 20, 2020.
A person holding the new Huduma Namba Card unveiled on Tuesday, October 20, 2020.
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Ministry of Interior

How to Check KUCCPS University Placement for 2022 KCSE

Left to right: University of Nairobi building, Kenyatta University gate and Egerton University gate.
Left to right: University of Nairobi building, Kenyatta University gate and Egerton University gate.
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University of Nairobi/Kenyatta University/Egerton University

Education Cabinet Secretary Ezekiel Machogu announced the placement of students to different universities and higher institutions of learning on Monday, July 31.

Machogu urged the school administration to ensure that the students and parents get the relevant information on reporting dates in due time to ensure a smooth transition. He directed VCs and Principals to ensure letters of admission are released by August 2, 2023.

This is after numerous revisions for the learners to select courses they qualify for through the Kenya Universities and Colleges Central Placement Service (KUCCPS) platform.

The CS also launched a new portal for students to apply for scholarships and loans from the Higher Education Loans Board (HELB) and the Universities Fund.

Ezekiel machogu
Education Cabinet Secretary Ezekiel Machogu speaking on Wednesday, April 26, 2023.
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Ministry of Education

Students who sat for their Kenya Secondary Certificate Education (KCSE) exams in 2022 are expected to start joining their respective schools in September 2023.

Earlier, Machogu assured that there will be a 100 per cent transition into higher institutions of learning as others will be placed in Technical and Vocational Education and Training (TVET) to enhance their skills.

How to Check Placement on the KUCCPS Platform

The learners should access the portal students.kuccps.net using their personal details.

To log in, students are required to provide their username (KCSE full index number), year (2022), and password (birth certificate number).

Once on the platform, the student will see a message on the dashboard with details of their placement, in the format;

“Congratulations, followed by the university you have been placed then finally the course you will pursue.”

Students can also access their placement details by sending an SMS with their Index Numbers without any space or slash to 20842. 

"All the candidates can check their placement status by sending their KCSE index number via SMS to 20842. The placement results will be placed on the KUCCPS portal," Machogu stated.

Recently, KUCCPS opened applications for students seeking to join Kenya Medical Training College (KMTC)

"KMTC courses are now available for application on the KUCCPS portal students. The application for the September 2023 intake will lapse on August 4, 2023. Spread the word.

"The application targets individuals who completed the KCSE examination from the year 2013 to 2022," read the statement in part.

Kenya Medical Training College (KMTC) in Kapkatet, Kericho County. 
Kenya Medical Training College (KMTC) in Kapkatet, Kericho County. 
KMTC

5 Reasons Why Jobseekers Don't Get Interviews Feedback

Kenyan youth queuing on Wabera Street in Nairobi, waiting for services on May 26, 2018.
Kenyan youth queuing on Wabera Street in Nairobi, waiting for services on May 26, 2018.
Photo
Kenyan magazine

Prospective employees often invest their time and efforts into job interviews, eagerly anticipating feedback that could shed light on whether they got hired or not.

However, the unfortunate reality is that many jobseekers are left in the dark, wondering why they did not receive feedback after the interviews. 

The lack of communication causes lots of frustrations with candidates giving up after months of pending applications without any response.

Speaking to Kenyans.co.ke, recruitment officer and Human Resource Manager Edwin Mwaura argued that certain factors lead to the candidates not receiving any feedback.

Job seekers
Job seekers protest over unemployment in Nairobi on October 2019.
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High Volume of Applicants

Mwaura argued that employers and hiring managers handle large volumes of applications and hence it can be challenging for employers to provide personalised feedback to everyone. He attributed this to most organisations lacking an automated system to send the regret letters in bulk.

Further, upon conducting the interviews, the Human Resource managers opt to prioritise other tasks as opposed to providing feedback to all candidates.

Some candidates have also complained about HRs giving a sense of 'false hope' by providing positive responses during the interview session leading to the interviewees gaining confidence that they secured the job.

"That reminds me of an interview last year. I was the last one to be interviewed and it went so well. One interviewer actually said, 'All day we've not met a candidate like you, you're a breathe of fresh air'. Promised they'll communicate in a day or two whether successful or not. It's been eight months now," communications specialist Grace Njigua wrote on LinkedIn.

Responding to this, Mwaura noted that HRs ought not to provide any form of responses until the interviewing process is concluded.

"HRs should not give feedback on the interview, that is jumping the gun, such HRs have interviewing skills gap. They need to be trained on that because before you analyse, you need to understand what is needed and give recommendations. This is done at the tail end of the process," he stated.

Company Policy

Certain organisations have policies in place that restrict the sharing of feedback with candidates either due to fear of reprisal or legal issues.

In some cases, some employers fear potential legal consequences if the candidates claim or justify that they were discriminated upon during the interview process.

Further, some companies often hire jobseekers based on various factors including cultural fit, personality, and chemistry with the team, aside from their qualifications hence providing feedback based on these subjective elements could be difficult for employers to articulate.

Candidate Follow-Up

Mwaura noted that jobseekers who don't actively follow up with the company post-interview are likely not to receive feedback.

According to the HR specialist, showing continued interest and seeking feedback can demonstrate professionalism and may prompt employers to provide information about the interview performance.

Undated photo of job seekers queuing for a job interview
A photo of job seekers queuing for a job interview on May 5, 2021.
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Nairobi County Government

Constructive Criticism

Mwaura agreed that providing the candidate detailed reasons for not acquiring the job may be a sound idea, he questioned whether they could handle the constructive criticism from the company.

"What usually happens is that we don't want to belittle someone, we will give a very general response, something like 'this is what we're not looking for at the moment but if you see a vacancy, feel free to reapply'

"It (providing feedback) can work, if we are able to give a definite reason such as your communication is wanting, improve more on analytical skills etc, but also can everyone handle the criticism?" he posed.

Pre-determined candidates

He added that in government institutions, some candidates often pre-select candidates and hence conduct interviews as a formality.

"In government, we also find HR managers exchanging candidates hence there are no vacancies. This is also done in ministries and parastatals. The process, however, ought to be based on integrity," he pointed out.

 

Why Some Nairobians Are Building Without Permits

Aerial view of Nairobi City
A photo of the aerial view of Nairobi City
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Kenya Pics

Nairobi City County has faulted the defunct Nairobi Metropolitan Services (NMS) for the backlog of applications for development projects within the county. 

Through the County Executive Committee Member (CECM) of Built Environment & Urban Planning Stephen Gathuita, he noted that the county inherited NMS' approval systems which had caused a lapse in the electronic systems. 

This caused the construction of buildings in the county to stall for months. Some applications dated back to October 2022. 

Further, he noted that the approval system is still under the purview of the national government.

Aerial View of the Westgate Mall and other environs on October 30, 2018
Aerial View of the Westgate Mall and other environs on October 30, 2018.
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AirShare

Gathuita confirmed that concerted efforts were already put in place to optimise the system and transfer it to under control of the county government.

"The county is endeavouring to process all received development applications," he told Kenyans.co.ke.

The NMS had constituted a multi-sectoral urban planning technical committee to handle building plans and approvals in Nairobi County. 

Former NMS Director General Mohamed Badi had ordered that all planning approvals would be handled from the office. 

The Architects Alliance (TAA) had said that they would proceed with construction of buildings regardless of authorisation from Nairobi County owing to the months of delay of the approval process.

The association faulted the county government for not approving any development project since March 2023. They claimed that some of the delays dated back to October 2022.

Sylvia Kasanga, an architect under the alliance, claimed that efforts to reach the county government to clear the backlog were futile.

She alleged that some people within the county government sought to sabotage the electronic system. She claimed that there were plans to revert the system to manual as done in some other counties.

"Unless of course it is by design. We believe this continued downtime is a lot more than just a regular technical hitch," she stated.

The architects threatened to invoke Section 58 (6) of the Physical and Land Use Planning Act of 2019 which would give them the leeway to proceed with construction without permission if they had not received a written response from the county government within 60 days.

"We shall take legal action for the compensation of losses incurred as a result of stalled approval process, as well as recover the monies paid for approval but continue to be unlawfully held by the Nairobi City County without delivery of services," she reiterated.

A photo of the County Executive Committee Member (CECM) of Built Environment & Urban Planning Stephen Gathuita.
A photo of the County Executive Committee Member (CECM) of Built Environment & Urban Planning Stephen Gathuita taking oath of office in November 2022.
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Nairobi County

5 Taxes in Finance Act That Will Not Take Effect Until 2024

Ruto signing Finance Bill 2023 into Law
President William Ruto signs Finance Bill 2023 into Law at State House, Nairobi on Monday, June 26, 2023.
PCS

Several taxes are set to be implemented for the 2023/24 Financial Year after the Court of Appeal allowed the government to implement the Finance Act 2023 pending the determination of an appeal filed by Treasury CS Njuguna Ndung'u.

President William Ruto signed the Finance Bill 2023 into law on Monday, June 27. However, Busia Senator Okiya Omtatah opposed the Act at the High Court, which issued conservatory orders against its implementation. 

This prompted the Treasury CS to counter the case at the Court of Appeal, which on Thursday, July 28, ruled that his appeal was valid

According to the Act, the tax proposals will be implemented in stages from July 2023, September 2023 and January 2024.

Finance Bill 2023 Signed into Law
President William Ruto (seated) signs Finance Bill 2023 into Law at State House, Nairobi on Monday, June 26, 2023.
PCS

Among the taxes to be effected from January 2024 include; advance tax on vans, tax on income for non-residents, residential rental income of 7.5 per cent, taxation on shares for employees and qualifying intellectual property income.

Advance Tax

This tax is charged on commercial vehicles such as vans, trucks, prime movers, trailers and lorries before they are licenced to operate.

In the Finance Act, the charges are estimated at either Ksh2,500 per tonne of load capacity per year or Ksh5,000 per year - depending on which rate is higher.

Tractors or trailers used for agricultural purposes were spared from this taxation policy.

Taxation on Employee Shares

"Where an employee is offered company shares in lieu of cash emoluments by an eligible start-up, the taxation of the benefit from the shares allocated to that person by virtue of employment shall be deferred and taxed within thirty days of the expiry of five years from the end of the year of the award of the shares, the disposal of the shares by the employee or the date the employee ceases to be an employee of the eligible start-up," read the Act in part.

Upon the start of implementation, the policy will not apply to any cash salaries, profit or other benefits in kind offered to the employee.

Tax on income for Non-Residence

As of January 2024, foreigners with business establishments in Kenya will pay tax for income sent overseas to their home countries.

Some of the factors to be considered when calculating the tax include net assets at the beginning of the year, the net profit for the year of income calculated, tax payable on the chargeable income and the net assets at the end of the year.

"The tax imposed under this section shall be in addition to tax chargeable on the income of the permanent establishment

"For the purposes of this section, net assets means the total book value of assets less total liabilities for the year of income and shall not include the revaluation of assets," read the Act in part.

Residential Rental Income of 7.5 Per Cent

Landlords will be charged 7.5 per cent of the gross rental receipts collected from tenants.

The charges were reduced from 10 per cent after an uproar from landlords and other Kenyans who lamented that it would impact rent charges.

Taxes to Take effect on July 1, 2023

Taxes to take effect from July 1 include the 1.5 per cent salary deductions for the Housing Fund. Employers will also match the employee's deductions.

The 16 per cent Value Added Tax (VAT) on fuel products will also take effect in the coming month.

Kenyans Embed URL

Why EPRA Gives Special Licences to Tanker Drivers & How to Apply

Photo collage of a driver behind the wheels and a fuel tanker in the Kenya border crossing point
Photo collage of a driver behind the wheels and a fuel tanker at the Kenya border crossing point.
Photo
Ryder/Motorists Association of Kenya

The Energy and Petroleum Regulatory Authority (EPRA) gives special licences and certifications to tanker drivers in the country.

A statement the authority shared on Tuesday, June 20, indicated that special licences are given to fuel tanker drivers to boost professionalism in the petroleum transportation sector.

The licence is also critical because it helps the industry players avert mishaps by ensuring only qualified drivers sit behind the wheel.

Further, it helps minimise malpractices such as fuel adulteration and theft through siphoning. The license also conforms with the National Transport and Safety Authority (NTSA) on the country's commercial vehicle regulations and operations.

Fuel tankers lined up to collect petroluem products for distribution in various parts of the country
Fuel tankers lined up to collect petroleum products for distribution in various parts of the country.
Photo
Bizna Kenya

"The move is part of the efforts to boost professionalism and avert tanker mishaps during the transport of fuel across the country as well as minimise malpractices such as adulteration and theft," EPRA stated amidst reports that many matatu drivers had failed driving tests conducted by NTSA.

The massive failure came after NTSA implemented Transport Cabinet Secretary Kipchumba Murkomen's directive to launch a nationwide crackdown to restore road sanity.

Requirements for Special Licenses

To obtain a Petroleum Road Tanker Driver Certificate, one must have a National Identification Document (ID), a valid certificate of fitness from a doctor approved by the Directorate of Occupation Health and Safety Services and a valid driving licence.

Other requirements include a police clearance certificate and a coloured passport-size photo.

How to apply

Applicants are expected to visit the online services portal on the EPRA website and click on the create account tab.

Then click on license management and select new licence application.

Applicants must select the preferred category, Petroleum Road Tanker Driver Certificate. Read and accept the licence conditions provided and click on the “Proceed with registration icon,"

Drivers are then expected to follow the application process step by step by filling in the required information and clicking save.

Before submitting, one must attach the required documents as indicated in the EPRA portal.

No fees are charged for Petroleum Road Tanker Driver’s Certificates issued by EPRA, and once approvals have been granted, drivers can download and print the license at their convenience.

"Applications for Petroleum Road Tanker Driver’s Certificates are evaluated within 30 calendar days from date of receipt," EPRA states on their website.

Law enforcement officers on the road during an road sensitisation exercise oragnised by the National Transport and Safety Authority on Monday May 8, 2023
Law enforcement officers on the road during a road sensitisation exercise organised by the National Transport and Safety Authority on Monday, May 8, 2023.
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NTSA

5 New Taxes That Will Come Into Effect Starting July 2023

Treasury Cabinet Secretary Njuguna Ndung'u at Parliament Buildings on Thursday, June 15, 2023.
Treasury Cabinet Secretary Njuguna Ndung'u at Parliament Buildings on Thursday, June 15, 2023.
Photo
Parliament of Kenya

Since its inception, the Finance Act 2023 elicited mixed reactions countrywide, prompting President William Ruto to revert to the drawing board to calm dissenting voices. 

From threatening lawmakers with dire consequences, summoning them to State House to break down its content, and consolidating opposition leaders' support, Ruto endeavoured to ensure his first Finance Bill passed, and he signed it into law on Monday, June 26. 

Ruto received a shot in the arm after the Court of Appeal, on Thursday, July 28, lifted conservatory orders issued against the Finance Act 2023. The government was thus ordered to implement the Act pending the determination of the appeal filed by Treasury CS Njuguna Ndung'u. 

Ndung'u opposed a case won by Busia Senator Okiya Omtatah at the High Court, which advocated for the new tax hikes to be nullified. 

From left: Economic Planning PS James Muhati, Treasury CS Njuguna Ndung'u and Treasury PS Chris Kiptoo at Parliament Buildings on June 15, 2023.
From left: Economic Planning PS James Muhati, Treasury CS Njuguna Ndung'u and Treasury PS Chris Kiptoo at Parliament Buildings on June 15, 2023.
Photo
Parliament of Kenya

Among the taxes introduced were the Housing Levy, the digital service tax and a 16 per cent value-added tax (VAT) on petroleum products. 

1. Housing Levy

The Housing Levy requires all Kenyan employees to contribute 1.5 per cent of their monthly salary towards a National Housing Development Fund (NHDF).

The Finance Act 2023 outlined that the fund would build affordable housing units for low-income Kenyans, especially those in urban areas. Employers would also contribute an equivalent percentage to aid President William Ruto in securing his legacy. 

MPs, prior to the Second Reading, removed the Ksh2,500 cap on the housing levy, enabling the government to deduct 3 per cent from all salaried Kenyans. 

2. Export and Investment Promotion Levy

The Export and Investment Promotion Levy (EIPL) would be levied on imports save for goods imported from the East African Community (EAC).

EIPL is intended to promote local manufacturing and investment and generate revenue for the government while offering the country an opportunity to shift from overdependence on imports. 

Others include items that are used in the production of exported goods and the construction of affordable housing units.

The EIPL would be levied at a rate of 10 per cent on the customs value of the imported goods. 

The EIPL is expected to generate Ksh 10 billion in revenue that would be used to fund the National Housing Development Fund (NHDF) and the Kenya Industrial Transformation Plan (KITP).

A port official handling containers at the Mombasa Port on April 7, 2022.
A port official handling containers at the Mombasa Port on April 7, 2022.
Photo
Kenya Ports Authority

However, the Kenya Association of Manufacturers (KMA) rejected the proposed amendment and the introduction of the Export and Investment Promotion Levy. 

"Our analysis shows that by imposition of the levy, Kenyan products will be the most expensive in the East African region, which will reverse the trade flow from EAC partners to Kenya.

"Locally, the increase in commodity prices will be passed on to the consumers who are already grappling with the ever-increasing cost of living," KAM warned. 

3. 16 Per Cent VAT on Petroleum Products

The Finance Act 2023 doubled the Value Added Tax (VAT) on petroleum products from 8 to 16 per cent.

Kenyans would thus pay more for fuel, which would have a knock-on effect on the cost of transportation, food, and other goods and services.

The government argued that the VAT hike would contribute to an increase in revenue that will fund development projects as the government moves away from overreliance on foreign loans.

4. Expanded PAYE for those earning Ksh800,000 and above

The Finance Act 2023 expanded the Pay As You Earn (PAYE) so that those earning Ksh800,000 and above would pay 35 per cent as Pay As You Earn (PAYE) tax.

This means that Kenyans earning Ksh800,000 and above will pay PAYE on their entire income, an increase from the previous 30 per cent.

The initial expansion was pegged on monthly incomes starting from Ksh500,000, but Members of Parliament reviewed it to Ksh800,000, technically, excluding themselves from the increased PAYE bracket.

President William Ruto (right) and DP Rigathi Gachagua during the Kenya Kwanza parliamentary group on Wednesday, November 16, 2022.
President William Ruto (right) and DP Rigathi Gachagua during the Kenya Kwanza parliamentary group on Wednesday, November 16, 2022.
PCS

5. Increase in Turnover Tax

The Turnover Tax (TOT) is levied on the turnover of businesses in Kenya. TOT is currently set at 1 per cent, but Finance Act 2023 increased it to 3 per cent. This means businesses earning Ksh1 million and above will pay more tax on their turnover.

However, the government lowered the digital service tax from 15 per cent to 3 per cent after content creators opposed the high levy.

Maratha Karua at Azimio la Umoja
NARC Kenya Leader Martha (Centre) reads statement on behalf of Azimio la Umoja coalition on Tuesday, May 2, 2023.
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Raila Odinga

How to File Complaints for Refund & Replacement of Goods by Supermarkets

Shoppers lining to buy goods at a supermarket in Nairobi, Kenya
Shoppers lining to buy goods at a supermarket in Nairobi, Kenya.
Photo
Bizna Kenya

On Thursday, June 15, President William Ruto reinforced rules allowing consumers to demand refunds and replacements of goods that fail to meet the prescribed market standards.

In the recommendations contained in his inaugural 2023/2024 Budget, President Ruto empowered the Competition Authority of Kenya (CAK) to help Kenyans seek redress through replacements or refunds.

National Treasury Cabinet Secretary Njuguna Ndung'u announced that the Competition Authority will further help Kenyans seek redress from predatory retailers, supermarkets, insurance firms and other merchants

"On consumer protection, the Authority will monitor and investigate emerging consumer issues in the utility sector, pharmaceuticals, digital financial services, e-commerce, insurance, aviation and safety of basic commodities.

From left: Economic Planning PS James Muhati, Treasury CS Njuguna Ndung'u and Treasury PS Chris Kiptoo at Parliament Buildings on June 15, 2023.
From left: Economic Planning PS James Muhati, Treasury CS Njuguna Ndung'u and Treasury PS Chris Kiptoo at Parliament Buildings on June 15, 2023.
Photo
Parliament of Kenya

In addition, the Authority will seek redress through replacement or refunds to consumers affected by dark commercial patterns, scams, and fraud under the digital economy," Njuguna announced.

How To File

According to the Competition Authority of Kenya, aggrieved customers can file complaints with it directly. CAK receives complaints submitted to its post, mail, and telephone calls. The contact details are contained on its official website.

The authority noted that Kenyans can also submit complaints by visiting its offices in various parts of the country, starting with its main branch at CBK Pension Towers, along Harambee Avenue, Nairobi.

Upon visiting its offices, the customer must fill in a consumer complaint form and provide all the relevant information, including documents such as receipts. The purchased goods could also be required during this process.

On receipt of a consumer complaint, the Consumer Protection Department will acknowledge the complaint and advise the consumer on any information gaps.

It will then analyse the information provided before contacting the accused supermarket retailer to gather more insights into the case.

Suppose the investigation establishes that the goods were unfit for consumption or did not meet the market standards, the Competition Authority of Kenya, in collaboration with other government agencies, such as the Kenya Bureau of Standards (KEBS), issues notice to other consumers

"The Authority may then apply administrative remedies to solve the complaints, which include; refund, replacement or repair of goods, withdrawal of misleading representations, recall of unsafe goods and notices to the public on the existence of such goods," the Competition Authority of Kenya states in its website.

However, complaints that do not fall under their mandate are referred to the relevant government agencies.

"Complaints that the Competition Authority of Kenya does not solve are forwarded to the Office of the Director of Public Prosecutions (ODPP) after completion of full investigations.

"Upon conviction, a person who contravenes the Part VI provisions of the Act is liable to imprisonment for a term not exceeding five (5) years or to a fine not exceeding Ksh10 million or both," the laws stipulate.

A photo of a supermarket shelf in Kenya.
A photo of a supermarket in Nairobi, Kenya.
Photo
HerBusiness