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Three new tax measures are set to take effect from Friday, September 1, in line with the schedule enshrined in the Finance Act ascended to by President William Ruto on June 29.

The new tax measures include Digital Asset tax, Electronic Tax Invoices and Export and Investment Promotion Levy rates on key products such as cement clickers used to manufacture Portland cement.

On the other hand, various tax penalties and rules on tax amnesty will take effect, as detailed below. 

A graphic representing Bitcoin - a form of cryptocurrency.

Photo

iStock

Digital Asset Tax  

The tax targets income derived from the transfer or exchange of digital assets such as cryptocurrencies and is set at 3 per cent.

"A digital asset includes anything of value that is not tangible and cryptocurrencies, token codes, and numbers held in digital form and generated through cryptographic means or otherwise, by whatever name called.

"The owner of a platform or the person who facilitates the exchange or transfer of a digital asset shall deduct the digital asset tax and remit it to the Commissioner.," reads the Act in part.

As per the Act, the taxes will be remitted within five working days after the deduction.

Miscellaneous Fees and Levies

The 2023 Finance Act amended the Miscellaneous Fees and Levies Act, of 2016 and introduced an Export and Investment Promotion Levy on notable goods such as iron, non-alloy steel,  kraft paper (cardboard) and sacks.

The levy is imposed on local manufacturers who export the goods overseas.

As per the schedule, cement clickers used to manufacture Portland cement, Bars and rods of iron or nonalloy steel, will face a levy of 17.5 per cent of the value of the exports.

On the other hand, the Finance Act imposes a levy of 10 per cent on the value of imported kraft paper (cardboard) and sacks.

Electronic Tax Invoices

This tax measure targets business people as they will be required to issue an electronic tax invoice through the system established by the taxman.

Business people will also maintain a record of stocks in the system established by the Kenya Revenue Authority (KRA).

The electronic tax excludes investment allowances, interest, emoluments, imports, airline passenger ticketing and similar payments.

"Where a tax law requires a taxpayer to issue an electronic tax invoice, submit a tax return in electronic form or pay a tax electronically, and the taxpayer fails to comply with that tax law, the Commissioner shall issue a notice in writing to the taxpayer requesting the reasons for the noncompliance.

"Where the reasons given under subsection (1) do not satisfy the Commissioner, the taxpayer shall be liable to a penalty of two times the tax due," read the Act in part.

Kenya Revenue Authority building at Times Towers

Kenyans.co.ke

Tax Amnesty Penalty 

Any person who fails to pay a tax due as of December 31, 2022, by June 30, 2024, will be penalised through interest. Amnesty will also not be granted for the same.

While applying for tax amnesty, one must write to the KRA Commissioner and propose a payment plan for the outstanding amount.

The Nairobi Metropolis real estate market shows a paradoxical trend, with smaller parcels of land often sold at higher rates compared to larger ones. 

According to HassConsult Q3 Land Indexes, certain areas in Nairobi witness higher spending on three-quarter acre plots than on one-acre plots. 

Estates like Parklands, Riverside, Upperhill, Westlands and Kileleshwa exhibit this phenomenon. 

For instance, from April to June, a three-quarters acre of land was valued at Ksh467.9 million whereas an acre traded at Ksh403.9 million. However, a quarter of an acre in the same estate was valued at Ksh339 million.

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

Photo

AirShare

So, what are the driving forces behind this phenomenon?

Preference of Buyers

Kenyans.co.ke established that preference among potential landowners is one of the driving factors.

Speaking to Kenyans.co.ke on Saturday, August 26 real estate expert Arnania Ogutu, opined that several potential developers in Nairobi often sought to buy smaller pieces of land owing to costs in property development.

He asserted that homeowners often seek smaller pieces of land as they are easier to develop compared to constructing a house on a bigger parcel of land. Smaller land sizes typically require less initial investment and entail reduced construction costs.

Homebuyers often weigh the expenses associated with building and maintaining a property as an attractive option in terms of affordability. 

Notably, with the increasing construction costs that have been witnessed in the last few months owing to the increased production costs of materials, homeowners are seeking cheaper options.

Therefore, prices rise with increased demand for the smaller pieces of land. 

"Some of those seeking to buy the land will definitely choose a smaller piece of land because they are easy to develop and the cost of construction will definitely be lower compared to that of a large piece of land. This could be a contributing factor to this trend," he stated.

Photo of the real estate apartments owned by Cheriez Properties Limited in Kitengela.

Photo

Cheriez Properties Limited

Scarcity 

Increased demand for small land prices leads to scarcity of the said parcels. Automatically, when a scarce product - in this case, land- is in high demand- prices will automatically go up.

On the other hand, some estates have seen smaller pieces of land sold completely, leading to the availability of large trucks of land above one acre.

Location

According to Ogutu, locations with better infrastructure, such as roads, malls, and schools, drive up prices for smaller land parcels compared to larger land in less developed areas. 

"Everybody will only look for land where there is a road and other key infrastructure because of accessibility. This will obviously lead to an increase in the demand," Ogutu explained.

Sakina Hassanali, the Head of Development, Consulting and Research at HassConsult, a realtor, concurred with Ogutu, adding that infrastructural projects such as the Nairobi Expressway and other key infrastructure were driving the cost of land.

“Land pricing is a function of its development potential. Therefore, land in areas with strict development density guidelines tends to have a price ceiling while land in areas that are subject to less rigidity around the densities tends to increase in pricing in tandem with the approved density,”  Hassanali stated in the Q3 report.

A photo of a section of Nairobi's Upper Hill estate taken on May 4, 2020.

Photo

Washington Mito

Millions of Kenyans Are Spending to buy Land in Nairobi in 20 2023

Upper Hills holds the record for the most expensive acre of land in Nairobi, valued at Ksh478 million, followed by Westlands at Ksh452 million. 

Other highly valued areas include Parklands (Ksh403 million), Kilimani(396 million), Riverside (Ksh320 million), Kileleshwa (Ksh293 million), Gigiri (Ksh231 million) Lavington (Ksh225 million), Muthaiga (Ksh213 million) and Nyari (Ksh110 million.

Fruits and vegetables are widely regarded as nutritious staples, credited with the potential to ward off various illnesses. 

The age-old adage, "An apple a day keeps the doctor away," basically highlights the importance of consuming fruits daily to boost immunity. 

However, unbeknownst to many, some seeds of various fruits like apples can lead to fatality if consumed in larger quantities despite the appealing fleshy, juicy and sweet exterior. 

The Rose Family 

A photo of several apples in a basket after harvesting

Photo

Oxfarm

Apple seeds contain a compound known as amygdalin, which forms part of its natural defensive mechanism. The compound degrades into hydrogen cyanide (HCN) if accidentally chewed in larger quantities.

Research published in the journal of the Association of Analytical Communities, also known as AOAC International, in April 2023 indicates that amygdalin is a cyanogenic glycoside, a natural toxin found in seeds.

AOAC International brings together government, industry, and academia to establish standard methods of analysis that ensure the safety and integrity of foods and other products impacting public health worldwide.

Another research conducted by the World Health Organization (WHO) titled Safety Evaluation of Certain Food Additives and Contaminants, explains that excess consumption of hydrogen cyanide may lead to fatality. 

"Acute toxic effects result primarily from inhibition of cellular respiration and consequent histotoxic anoxia, which can eventually lead to death," reads part of the research.

Notably, histotoxic anoxia transpires when a toxic substance (or substances) interfere with the brain's capacity to utilize oxygen. 

Often, this compound is found in seed fruits in the rose family comprising apples, apricots, peaches, almonds, and cherries.

Accidental consumption of these seeds may result in cyanide poisoning, with symptoms including anxiety, dizziness, and confusion.

The severity of the effects depends on the amount of seeds consumed. It is also dependent on the consumer's weight and type of apple ingested. 

If swallowed whole, the seed may pass through the digestive tract and excreted without harm. For utmost caution, especially for children, removing the seeds before consumption is highly recommended. 

Cassavas 

Notably, even though cassava lacks visible seeds, the potentially harmful compound is present. Overconsumption can lead to cyanide poisoning and other neurological disorders. 

Scientists underscore that oils and juices derived from these fruits may contain minimal amygdalin content. 

Other fruits

Plums, even though considered by some scientists as a fruit comprising cyanogenic glycosides, it is relatively lower compared to other fruits. 

Remember to discard the seeds when enjoying these fruits in the future to enjoy a wholesome and safe experience. 

A photo of several stone fruits, peaches, plums and berries.

Photo

alvarez

The government has released the fees that new varsity students will be required to pay in the revised model per university per course. 

While some students will not be required to pay anything, they will be required to get student loans to cover the difference, which could push more Kenyans into debt amid unemployment.  

The ministry has maintained that the new funding model will increase student admission to universities and ease financial pressure on the institutions that are currently struggling with mounting debt and pending bills. 

The model classifies students into vulnerable, extremely needy, needy, and less needy. It allows students to access scholarships and loans from the billions set aside by the government.

Education CS Ezekiel Machogu speaking during the 46th Annual Conference of the Kenya Secondary Heads Association (KESSHA) at Sheikh Zayed Hall in Mombasa on Wednesday, June 28, 2023.

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Ministry of Education

The vulnerable are those with no household income, the extremely needy are those with a Ksh23,671 household income per month, the needy have between Ksh23,672 and Ksh70,000 per month and the less needy have a household income of between Ksh70,001 and Ksh200,000 per month.

To determine the level of need, the Higher Education Loans Board (HELB) Means Testing Instrument shall be applied.

This test will consider, parent's background, gender, course type, previous school type, expenditure on education, family size and composition, marginalisation, and disability.

"The total funding requirement for the New Funding Model is Ksh 39.4 billion for the Financial Year 2023/2024. To support this Model, the Government has already increased resources by Ksh 12.5 billion this Financial Year. The current funding gap of Ksh 18.6 billion will be provided during Supplementary 1 of the Financial Year 2023/2024," reads a statement from the ministry.

Students have up to September 7 to apply for loans and scholarships or risk being locked out. They can apply through the official website hef.co.ke as applications are free.

The verification process takes seven days, one day for funds to be allocated and then disbursed based on opening dates.

As of August 23, 2023 applications have continued to come through, there were 75,272 successful applications for university and TVET students.

MOE expects 140,107 university students and 145,060 TVET students to apply before the time lapses.

University Students

The households of the vulnerable and extremely needy students will not contribute anything. Students who qualify for university admission are those who attained a minimum grade of C-.

The vulnerable will receive 82 per cent in scholarships and 18 per cent in loans while the extremely needy will receive 70 per cent in scholarships and 30 per cent in loans.

On the other hand, the needy will receive 53 per cent in scholarships, and 40 per cent in loans, and the family will pay 7 per cent.

The less needy will receive a 38 per cent scholarship, and a 55 per cent loan, and the family will pay 7 per cent.

TVET students

Learners from vulnerable homes will receive an 80 per cent scholarship and a 20 per cent loan, while the extremely needy will receive a 70 per cent scholarship and a 30 per cent loan.

The needy students will get a 50 per cent scholarship and, a 30 per cent loan, and the family will pay 20 per cent while the less needy will get a 32 per cent scholarship and a 48 per cent loan, and the family will pay 20 per cent.

The government has put more emphasis on students joining TVET institutions to get hands-on skills and be employed to create employment for themselves.

Under the new funding model, students will also get upkeep depending on their level of need. They will get between Ksh13,600 and Ksh60,000 also based on whether they are in universities or TVETs.

Meanwhile, the amount a student will get also depends on the course. Below is an illustration of fee variation in five courses from different universities.

Bachelor's Degree in Medicine

Bachelor's Degree in Law 

Bachelor's Degree in Education

Bachelor's Degree in Arts

Bachelor's Degree in Commerce 

Even as unemployment rates in Kenya continue to spike and graduates continue to lament about lack of opportunities in the job market, there are several rewarding careers that are often overlooked by students.

One example is in the sailing industry. There are courses that can lead to great, long-lasting jobs for young Kenyans. 

However, the problem is that students usually don't explore these options. This can be attributed to a lack of comprehensive information or apprehensions as students prefer to stick to what they think is safe and popular.

One job that's often overlooked is being a ship captain. Not many people get to have this job.

While many of these professionals find employment in foreign countries, the Kenya National Shipping Line (KNSL) is working to expand opportunities for aspiring ship captains within the country.

A container ship docked at the Port of Mombasa on Monday, April 17, 2023.

Photo

KPA

Another reason why this course is undersubscribed is lack of sensitisation and proper guidance on what the course is all about.

This is made worse by the fact that in most cases, students who have just completed high school pursue careers recommended to them by family which might not necessarily be their own preferred option.

This article will focus on the step-by-step process an individual goes through to become a successful sea captain in Kenya.

Academic Qualifications

To become a ship captain, young professionals are required to undertake a Bachelor of Science Degree in Nautical Science from an accredited institution. 

The Bandari Maritime Academy (BMA) offers this program. The curriculum focuses on nurturing essential mathematical, analytical, and problem-solving proficiencies.

Completing the Nautical Studies Module 1 Diploma demands about a year's commitment. However, for a comprehensive learning experience, the full-time course spans three years. The cost for each module is approximately Ksh140,000.

As a prerequisite, prospective students to score a minimum grade of C-.

Students have the option to enroll in a craft certificate program in Nautical Sciences, spanning two years and costing Ksh125,000 per module. 

Eligibility requires a minimum grade of D plain. Examinations are overseen by both the Kenya Maritime Authority and the Kenya National Examinations Council (KNEC).

Another pathway involves becoming a cadet and undergoing an 18-month training period on board a ship, followed by subsequent courses at the Maritime Academy. 

Additionally, the Indian Ocean Maritime Training Centre (IOMTC) offers internationally recognised boat handling qualifications, being an overseas Royal Yachting Association (UK) training center.

These steps are just the initial phases of the long journey towards becoming a ship captain. 

The overarching process spans 12 years, progressing through various classes from Class Four (first) to Class One (final). 

Each class level necessitates six months of coursework accompanied by a substantial commitment to gaining practical sea experience. 

The rigorous journey ensures that aspiring ship captains are thoroughly prepared to undertake the responsibilities synonymous with commanding a vessel.

A photo of the entrance at the Bandari Maritime Academy (BMA) in Mombasa

Photo

Bandari Maritime Academy

The whole journey requires a good grasp of Maths, Physics, and Geography. 

Other required skills include; discipline, problem-solving, physical strength in case of threats, and willingness to learn.

A potential disqualifying factor in this sector is colour blindness, as ship captains heavily rely on colour-coded signals.

Salary & Perks

Captain Davis Mule, a former Navy Ship captain, in a previous interview, highlighted the significant advantages of a shipboard career. 

Apart from the convenience of onboard accommodations, ship captains have the unique privilege of exploring new locations and interacting with diverse cultures.

"When working at sea, the salary is good. You do not pay taxes, you don't pay rent or have personal expenditures.

In the United States, for instance, the average annual salary for a ship captain stands at about Ksh11.8 million, contingent on the work location. 

Notably, according to Cruise Critic, a cruise ship captain garners an average annual income of Ksh21.7 million. 

It's worth noting that this remuneration is dispensed in US dollars, further stressing the appeal of the position.

A ship arriving at the Port of Mombasa on Monday, April 17, 2023.

Photo

KPA

As 2022 KCSE students pursue government funding through the newly introduced university funding model, parents and other stakeholders are still unsure whether to embrace the programme inaugurated on Monday, July 31 fully.

The Ministry of Education, led by CS Ezekiel Machogu, on Thursday, August 11, offered clarity on the new model and explained its differences from the old funding programme in an effort to calm the dissenting voices. 

Here is a list of the 14 most asked questions about the model and the corresponding responses. 

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

Photo

Ministry of Education

1. What is the purpose of the new Higher Education Government Student Scholarship?  

The scholarship aims to support students across tertiary institutions with their education based on fees charged in school and their financial background.

2. Who qualifies for the scholarship?  

The scholarship is only offered to Kenyan students who sat for their KCSE examinations in 2022. The students must also be placed at the Kenya Universities and Colleges Central Placement Service (KUCCPS).

3. Can a student apply for a loan (HELB) and scholarship in the same year? 

A vulnerable student will qualify for an 82 per cent scholarship and an 18 per cent loan for the cost of the programme.

An extremely needy learner will get a 70 per cent scholarship and a 30 per cent loan for the cost of the course.

A needy learner will get a 53 per cent scholarship, a 40 per cent loan and a 7 per cent household of the cost of the programme.

A less needy learner will get a 38 per cent scholarship, a 55 per cent loan and a 7 per cent family of the cost of the course.

4. Can students below 18 years apply for the scholarship?

Minors placed in any institution by KUCCPS can apply for a scholarship. Once the individuals reach 18, they will be required to update their profiles to continue benefiting from the government scholarship and loan.

5. Is it a must for a student to apply for the Higher Education Government Student Scholarship? 

No, it is not mandatory.

6.  What steps must one follow when applying for a Government Student Scholarship?

To apply for a scholarship, visit www.hef.co.ke. The documentation required includes academic records, personal details, student's residential and educational background.

"Ensure you have the necessary documents available, including the “Consent to Collect Personal Data” form," read the statement in part.

7. Are the scholarships based on financial need, merit or both?

Apart from financial needs, the scholarship is also based on academic merit.

8. Is the application for the Government Student Scholarship a one-off for a learner throughout the degree?

Beneficiaries have to apply through the funding website every year academic year.

9.  What happens if one receives less than the scholarship award applied for? 

An individual may appeal or request a review of the scholarship if they are not satisfied with the amount awarded. Those who miss out on the scholarship can also appeal.

KUCCPS CEO Agnes Mercy Wahome speaks during a career guidance forum held at Kangaru School in Embu County on July 15, 2023.

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KUCCPS

10. Can a foreigner apply and receive the Government Student Scholarship?

The scholarship is only restricted to Kenyans.

11. How can a student use the Government Student Scholarship fund? 

The fund takes care of the tuition fees and is directly disbursed directly to the university or college.

12. Can the Government Student Scholarship affect other forms of financial assistance to the learner? 

If a student is fully funded by another agency, individual or institution, they cannot qualify for the scholarship since it will lead to overfunding. Students will be required fully disclose the agencies sponsoring them and the amounts applicable.

Non-disclosure may lead to withdrawal or cancellation of the scholarship.

13. Are there any requirements or responsibilities for Student Government Scholarship recipients?

Students are required to complete their studies within the stipulated time. The scholarship will not cater for any extended study duration cost.

14. Will a student need a guarantor to be eligible for the Government Scholarship? 

No guarantors are needed.

Universities Fund Chief Executive Geoffrey Monari has revealed that the government will rely on data from other State agencies to qualify students for scholarships and loans.

Speaking during an interview on Wednesday, Monari highlighted that the allocation of funds to each student, along with their respective categorisation, will be determined based on key factors such as tax data, health insurance, and retirement contributions. 

He emphasised that the decision-making process will heavily rely on information sourced from the Kenya Revenue Authority (KRA) and the National Health Insurance Fund (NHIF) to accurately assess family incomes.

"For example if you are paying Ksh1,700 for NHIF it means you are at a certain income bracket or if we go to KRA and look at your returns, it means you are at a certain income bracket," Monari stated.

A collage of the entrance to Kenyatta University (left), Moi University (centre), and Egerton University (right)

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Kenyatta University / Moi University

While data will be crucial in determining households' income brackets, Monari explained that making a more informed decision will require careful consideration of the information provided in applications. 

The applications will contain details about students' backgrounds and family income, among other factors.

Some experts have raised concerns about the potential consequences of the new funding model. They argue that, given the current economic environment, education could become expensive, making it unaffordable for many families. 

Additionally, questions have been raised about how the government will assess the vulnerability of applicants, especially considering that a significant number of Kenyans work in the informal sector.

"The new model of funding higher education is a backdoor way to end education subsidies just as I had foreseen," Ephraim Njenga, an economist, remarked.

"Now they will be classified as able hence liable to pay full university fees of over Ksh250,000 per year. If you have two students in the university, you will struggle even with a good salary. Only the very rich wouldn't feel the pinch."

Critics of the new system have chided the government for hurriedly implementing the changes without conducting enough public participation and experimenting without considering the consequences it will have.

"Every sane Kenyan should oppose the experimentation going on in our education sector. It doesn't matter whether you can afford the shenanigans or not," Njenga warned.

NHIF building in Nairobi.

Photo

SOKO DIRECTORY

Civil servants are set to receive slightly adjusted payslips after the government announced a 7-10 per cent increase in net salaries, with the government set to backdate both the new monthly pay as well as taxes introduced in the Finance Act, 2023. 

It, therefore, means that civil servants will have to pay the new taxes on their newly increased salaries for the months of July and August 2023, even though the taxes were not in effect at that time.

This backdating of new salaries and taxes is likely to have a significant impact on the take-home pay of civil servants. 

For example, going forward, a civil servant who earns a monthly salary of Ksh100,000 will pay between Ksh880 to Ksh2,400 in NSSF contributions and Ksh1,500 in Housing Levy. 

A photo of teachers at a Kenya Secondary Schools Heads Conference in Mombasa in April 2022.

Photo

TSC

"Teachers under the Teachers Service Commission (TSC) have medical cover, in lieu of medical allowances, superior to NHIF but also pay a compulsory contribution to NHIF, which most don't use.

"The same teachers make compulsory contributions to the state pension scheme for their pension and must also pay NSSF deductions," an Economist, Tony Gitonga observed.

This will reduce their net pay by at least Ksh3,750 per month, hence it is possible that the new taxes will lead to increased dissatisfaction among civil servants.

However, the same civil servants have also received a 10 per cent increase in salaries, which means that an employee earning Ksh100,000 will receive an extra Ksh10,000 per month. 

A section of civil servants have already expressed their displeasure with new taxes, arguing that it is unfair to make them pay taxes for months when the taxes were not in effect. They also argue that the new taxes will make it difficult for them to make ends meet.

However, the government has defended the backdating of the taxes, noting that it is necessary to ensure that everyone pays their fair share of taxes. 

The government has also stated that it will use the additional revenue from the taxes to fund important development projects.

New Civil Servants Payslip Outlook

The Teachers Service Commission (TSC) CEO Nancy Macharia at a past event

Photo

TSC

1. Teachers' Payslip

A report released by the Kenya National Bureau of Statistics (KNBS) in May 2022, revealed that the average monthly salary of teachers is Ksh61,843.

With an average Gross Salary of Ksh61,843, a teacher employed by the Teachers Service Commission (TSC) is subject to a Pay as You Earn (PAYE) deduction of Ksh10,417.25.

PAYE applies to individuals with a monthly employment income of Ksh24,000 and higher. This obligation extends to both residents and non-residents engaged in gainful employment, as well as any entity disbursing emoluments to its employees.

"As an employer, you are required to deduct PAYE from your employee's salaries and wages at the prevailing rates and remit the same to KRA on or before the 9th of the following month," the tax authority warned.

Likewise, the teacher will be required to contribute Ksh360.00 to the National Social Security Fund (NSSF Tier I) and Ksh720.00 to NSSF Tier II. 

The teacher will also remit Ksh1,300.00 to the National Health Insurance Fund (NHIF), along with a 1.5 per cent Housing Levy amounting to Ksh928, based on the overall earnings.

As a result, the total deductions will amount to Ksh13,725.25, which means that the net pay for a teacher with a gross salary of Ksh61,843 will be Ksh48,117.75.

At the same time, the taxable pay will be pegged at Ksh60,763.00 since allowable deductions are rated at Ksh1,080.

Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) Secretary-General Dr Davji Bhinji Atella (Centre) flanked by other union members on October 15, 2022.

Photo/KMPDU

2. Doctors

According to KNBS data, the average monthly salary of government workers in the health sector, who include doctors and nurses is Ksh155,377.

Based on a gross salary of Ksh155,377.00, a medical officer will have various deductions, including Ksh38,417.45 for PAYE, Ksh720.00 for NSSF Tier I, Ksh1,700.00 for NSSF Tier II, and Ksh2,331.00 for Housing Levy. 

These deductions total Ksh43,528.45, resulting in a net pay of Ksh111,848.55. The calculations are based on a taxable pay of Ksh154,297.00 and an allowable deduction rate of Ksh1,080.00.

3. Police Officers

President William Ruto inspecting a GSU pass out parade on January 12, 2023.

PCS

Similarly, data shared by the statistics office shows that the average monthly salary of civil servants in public administration including police officers is Ksh56,041.

Consequently, a police officer receiving a Gross Salary of Ksh56,041 will see deductions amounting to Ksh11,812.65. These deductions comprise Ksh8,691.65 for PAYE, Ksh360.00 for NSSF (Tier I), Ksh720.00 for NSSF (Tier II), Ksh1,200.00 for NHIF contributions, and Ksh841.00 for Housing Levy. 

Following these deductions, the officer's net pay will be Ksh44,228.35. This computation is based on a permissible deduction rate of Ksh1,080.00 and a taxable pay of Ksh54,961.00.

President William Ruto inspects a Guard of Honour during Madaraka Day Celebration in Embu on Thursday, June 1, 2023.

PCS

The Cabinet has approved the proposal to split the National Oil Corporation of Kenya (NOCK) into three subsidiaries as the government moves to restructure the ailing parastatal.

Under the proposed turnaround strategy, NOCK will be split into NOC Upstream Limited, NOC Downstream Limited, and NOC Trading Limited. 

National Oil is a state-controlled company that deals in both upstream and downstream oil business which the government now wants to change. 

“Under the proposed turnaround strategy, NOCK will benefit from a partnership that restructures it into three subsidiaries segmented around the petroleum products value-chain,” a dispatch sent to the newsroom noted. 

National Oil Corporation of Kenya (NOCK) Petrol Station.

Photo

National Oil Corporation of Kenya (NOCK)

The oil distributor has been making losses, with numerous efforts to privatize the company failing.  

"These subsidiaries include NOC Upstream Limited, focused on exploration and upstream production activities and services, NOC Downstream Limited, focused on marketing and distribution of petroleum products," Cabinet noted.

"There will also be a NOC Trading Limited, specialising in holding strategic stocks of petroleum products for import and export." 

The oil marketer controls only 1.5 per cent of the market share, in an environment controlled by private and listed companies. 

In 2017, a plan to list the company at the Nairobi Securities Exchange (NSE) to raise Ksh100 billion to buy back rights in the Turkana oil project failed. 

Multiple attempts to sell a stake in the company or restructure the company has not materialised, with the company sinking deeper into losses. 

The government has remained non-committal about the initial plans to list the company and subsequent plans to list at the London Stock Exchange. 

The loss-making parastatal was incorporated in 1981 to secure the government's interest in the oil business. 

Oil exploration project at South Lokichar basin project on September 2021.

Photo

Africa Oil Corp

The Higher Education Loans Board (HELB) CEO Charles Ringera now says that students seeking funding from the institution will sit for a test before submitting their application. 

Speaking on a Twitter space held by Kenyans.co.ke on Monday, August 7, Ringera explained that the test aims to enlighten students on the terms and conditions of the funding.

HELB will also use the assessment to score students into various categories, determining the amount of money allocated for scholarships and loans.

Students are required to score at least 80 per cent on the test before submitting their application.

A photo of the University of Nairobi (UoN) towers in Nairobi County.

Kenyans.co.ke

"The test aims to create an awareness that this is a loan and scholarship and details the payments you will have to make depending on the classification that you are in," Ringera, a banker by profession, stated. 

Further, he maintained that continuing students will also have to sit the test despite being funded under the old model.

Why Sit the Test

Ringera highlighted instances where students struggled to comprehend loan terms, highlighting situations where applicants questioned the rationale behind HELB offering a one-year grace period for loan repayment.  

The HELB CEO elaborated that the intention behind the one-year grace period was to assist students in transitioning and establishing themselves after graduation.

"These are the conditions of the loan. If you don't pay for the loans, your siblings behind you will not access the loans. 33 per cent of our budget comes from loan repayments," Ringera, a former Central Bank of Kenya regulator, explained. 

"If we relax the model more Kenyans will lack the funding like last year because we ran out of budget," he added.

Therefore, he encouraged Kenyans to fulfil their obligations, highlighting that applicants had the option to repay their loans in instalments, starting from Ksh500 gradually.

Ringera further urged Kenyans to embrace the informal sector that also offers employment opportunities for individuals post-graduation. 

File photo of students lining up to submit their HELB details at Anniversary Towers in Nairobi County.

HELB