Hello and welcome to the Evening Brief Newsletter where we are scrutinising President William Ruto's deals as he hobnobs in the US.
But first, a word from KRA...
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Hustler and the High Society
On his second day in the US, where he flew for a State Visit, President Wiliam walked right into the high society hobnobbing and scouring for deals from celebrities, leaders, and the very tall.
During his speech to Georgia Business Leaders, including CEOs of Fortune 500 companies, Ruto wooed them to invest in Kenya highlighting the reviewed Digital Services Tax regime.
"VAT on exported services is no longer payable and verified tax refund claims will be processed within six months, failing which taxpayers can offset their claim against future tax liability without further application to KRA," he stated.
Cherry on Top: "Start-up companies are now exempt from paying taxes due from unrealised gains on employee allocated shares." he added.
Since landing, multinational companies including Microsoft and Coca Cola have pledged massive investments.
- Coca Cola committed to investing Ksh23 billion ($175 million) over the next five years in a move expected to double the company's workforce in the country. The company employs more than 3,000 people and has 6 manufacturing facilities. "This is a milestone in the firm’s presence in Kenya and Africa, a testimony that we must sustain our strong collaboration for us to grow," Ruto said.
- Microsoft Corporation and G42, an Emirati artificial intelligence (AI) development company, pledge to invest Ksh132 billion in Kenya's digital economy. This includes a data center in Ol Karia, local-language AI models, an Innovation lab in Nairobi, expanded internet connectivity, and a facility to promote data privacy. The investment will be among the largest in the private sector.
- Ruto and the Mayor of Atlanta Andre Dickens forged an agreement to exchange experiences and ideas with the City of Atlanta in several sectors including low-cost housing. Affordable housing is Ruto's flagship project and he aims to deliver 200,000 new units annually. "We also look forward to establishing a twinning partnership between Nairobi and Atlanta for the benefit of our two cities."
- Ruto and the US signed a partnership in Education that will enhance student and faculty exchange, joint research and innovation to accelerate our country’s Silicon Savannah ambition. Five Kenyan Universities will sign student exchange programmes with their American counterparts.
- The signing of MoUs between CDC and Kenya Medical Research Institute, the Ministry of Health, and the U.S. President's Emergency Plan for the joint proclamation for the operationalisation of the Kenya National Public Health Institute.
- President William Ruto visited the famous Tyler Perry Studios (Value; Ksh37 billion) and vowed to pump more investments in entertainment. As part of Ruto's goal to grow the local film industry, the Head of State invited Emmy Award-winning TV host Steve Harvey. Harvey will fly to Kenya in September to interact with the industry and in December as the chief guest during Independence Day.
Futurely: Ruto was yet to meet leaders from Google, Teneo, and MkopaKenya during his visit to the White House on Wednesday.
- Ruto's dedication to securing placement of Kenyans in employment abroad. He has signed a deal with Germany and 19 others are in the pipeline.
Apologies Made: While touring Tyler Perry Studios in Atlanta, Ruto apologised to one of his daughters for doubting her dreams of pursuing a career in film-making.
While addressing a congregation, the Head of State was remorseful for questioning her when the daughter approached him with her goals roughly eight years ago.
"I understand about eight years ago, my daughter, and she is around, she asked me, 'You know, I want to do film.' So I asked her, 'What did you say?' I must apologise to her today, she was right and I was wrong," Ruto stated.
"This gives it a completely different perspective and what I have seen here will dramatically change the perspective of the government of Kenya."
Perry launched the iconic studios to herald the production of Movie and TV content in 2019 on an expansive 134-hectare (330-acre) lot in Atlanta. The studios, with 12 soundstages, are valued at Ksh37 billion ($280 million).
Light Note: Ruto also brushed shoulders (but slightly lower) with Shaquille O'Neal, the former Basketball player. Other leaders who seemed interested in posing with the athlete were Defence CS Aden Duale and Prime CS Musalia Mudavadi.
Pay Up
As Ruto hustles, his Embassy 6,770 kilometers away in London has been slapped with a Ksh541 million fine.
The City of London fined Kenya as congestion charge noting that Kenya High Commission and a few other embassies had remained a stubborn minority refusing to make payments.
Quick Facts: The fee was first introduced in 2003 and is a £15 daily charge if you drive within the Congestion Charge zone 7:00-18:00 Monday-Friday and 12:00-18:00 Sat-Sun and bank holidays.
Kenya was among the highest defaulters at position 12 behind the High Commission for the Federal Republic of Nigeria (Ksh1.4 billion), the High Commission of the Republic of Ghana (Ksh842 million), and the Embassy of the Republic of the Sudan (Ksh664 million).
What London is Saying: "We and the UK Government are clear that the Congestion Charge is a charge for a service and not a tax. This means that diplomats are not exempt from paying it. The majority of embassies in London do pay the charge, but there remains a stubborn minority who refuse to do so, despite our representations through diplomatic channels.”
Pile Up: Should Kenya and other embassies not pay the congestion charges, TfL threatened to sue the foreign missions at the International Court of Justice.
The US is the highest defaulter at Ksh2.5 billion insisting that it will not pay.
Here are five other stories we are keeping tabs on today;
- After years of divisions, Deputy President Rigathia Gachagua has extended an olive branch to former President Uhuru Kenyatta to reconcile and mend their differences.
- Kenya Power CEO says the utility company lost Ksh68 million to vandals immediately after the scrap metal ban was lifted during Uhuru Kenyatta’s regime.
- The first 100,000 electric vehicles to be manufactured in Kenya will be exempted from all taxes in line with the government's objective to phase out all traditional fueled cars.
- Housing PS Charles Hinga says the government has invested Ksh20 billion deducted for housing levy on Treasury bonds for interest.
- A National Assembly Committee suspends payments to a Chinese firm for KICC renovations
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This newsletter was written by Derrick Kubasu and edited by Brian Muuo.
Washington Mito contributed to the content.
Graphics prepared by Sylvia Kalulu.
