You can run, but you can’t hide: As Kenya adopts CRS, calls for balancing tax transparency with data privacy concerns emerge.

Kenyan commercial banks have started implementing the Common Reporting Standards (CRS), a tax procedures regulation of 2023. This regulation requires all Kenyan banks, trusts, and other financial institutions to report and share information about foreign account holders with the Kenya Revenue Authority (KRA) as the

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CBK agriculture survey: Sector shows resilience, expects price decline despite challenges.

The Central Bank of Kenya released the Agriculture Sector Survey for January 2024,  highlighting the sector’s significant contribution to the country’s economy. Accounting for an estimated 33% of the GDP, agriculture serves as the backbone of Kenya, playing a vital role in generating foreign exchange

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Navigating Voluntary Tax Disclosure Programmes: A Guide for Businesses.

In the dynamic landscape of taxation, businesses often find themselves grappling with complex tax compliance requirements. In response to this challenge, tax authorities around the world have introduced voluntary tax disclosure programmes (VTDPs) to incentivise taxpayers to come clean about previously undisclosed tax liabilities. These

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CBK surveys point to optimism despite inflationary pressures: MPC raises interest rates.

The Central Bank of Kenya (CBK) conducts a Market Perceptions Survey before each Monetary Policy Committee (MPC) meeting to gather insights from banks and non-bank private sector firms regarding various economic indicators such as inflation, economic growth, credit demand, and exchange rates. The survey aims

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 Bridging the revenue deficit: Kenya’s quest to explore diverse international markets

Kenya’s economy was hit by global shocks, including the COVID-19 pandemic and geo-political issues, such as the Ukraine-Russia conflict, over the past two years. This has been exacerbated by the ballooning debt obligations owing to the downward trajectory of the shilling against the dollar. As

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Trade and Financial Services Round-Up

Kenya  IMF rescues Kenya from $2bn Eurobond scare The International Monetary Fund (IMF) has moved to rescue Kenya from plunging into a financial crisis after the global lender confirmed that it was mobilising funds to help the country repay its $2 billion Eurobond maturing in

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Tax education should complement automation of revenue systems to enforce compliance

For a country to attain its developmental goals, it has to generate revenue to fund these goals. A significant portion of a country’s revenue is generated through taxation. Despite the crucial role taxation plays in a country, issues of non-compliance persist and remain a pressing

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Significant Political Sentiment – Kenya explores new infrastructure financing opportunities with Beijing

On Wednesday, October 18, China’s President Xi Jinping held a meeting with President William Ruto who was in China to attend the third Belt and Road Forum for International Cooperation.  This was his maiden trip to China, a visit which was keenly watched by diplomatic

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An analysis of the proposed tax measures outlined in the draft Medium-Term Revenue Strategy

In the wake of economic challenges and declining domestic revenues, the National Treasury has unveiled an ambitious Medium-Term Revenue Strategy (MTRS) that promises to reshape the country’s tax landscape. The MTRS not only seeks to enhance revenue administration efficiency but also aims to foster economic

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Significant Political Sentiment: President Ruto’s take on the new tax measures and the need to curtail borrowing

The government’s spending on various initiatives ranging from affordable housing, healthcare, and support for farmers and small businesses, will be footed by taxpayers following approval of the budget and the Finance Act of 2023.  This outcome stems from the government’s implementation of comprehensive tax measures

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EQUITY MARKET COMMENTARY • The benchmark indices sustained their downward trajectory, with the NASI, NSE 20 and NSE 25 declining 4.8%w/w, 2.2%w/w and 4.4%w/w respectively on the price drop of most large caps. • Market activity surged five-fold to USD 30.4m – highest in four

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Worldcoin craze in Kenya: Beyond the free money to financial security and data privacy concerns

Worldcoin is an iris biometric cryptocurrency project. Worldcoin was founded with the mission of creating a globally-inclusive identity and financial network, owned by the majority of humanity. Worldcoin consists of a privacy-preserving digital identity network (World ID) built on proof of personhood and, where laws

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Combating money laundering: Setting the Criminal Assets Recovery Fund in motion will tighten the noose around the vice

The effect money laundering has on a country’s economy is both severe and extensive. Not only does it impact businesses and the economic health of a county but also has far-reaching implications for the financial sector, a critical component of a country’s economic growth and

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Unraveling the implications: Analysing the proposed increase of reporting thresholds in anti-money laundering and proceeds of crime regimes

The Cabinet issued a dispatch on 18th July after considering various legislative proposals, policies, and programs towards the implementation of the bottom–up Economic Transformation Agenda (BETA). This followed the just concluded fifth appraisal by the International Monetary Fund (IMF) after the approval by the World

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A reprieve to Kenyans but dire consequences to the exchequer after suspension of the Finance Act 2023

After President William Ruto assented to the Finance Bill, 2023, on June 6, the bill became law. This meant that some of the provisions of the law were to take immediate effect from July 1, 2023, while some would become effective in September and others

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Edible oils manufacturers seek government support for sustainable growth

The edible oil manufacturing sub-sector of the Kenya Association of Manufacturers, last week (3 July) released a statement urging government support for its continued growth. Through a new initiative dubbed ‘the Agriculture for Industry (A4I) Initiative’ the sector called for a collaboration with national and

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President Ruto’s address at the Global Financial Pact Summit in Paris: A comprehensive review

President William Ruto attended the New Global Financial Pact Summit held in Paris, France. The summit sought to address a a range of objectives, including but not limited to the following: Restoring fiscal space to countries facing short-term difficulties, especially the most indebted countries. Promoting

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Revitalising Kenya’s Tax System: Introducing the National Tax Policy and Its Transformative Impact

  Since gaining independence in 1963, Kenya has made significant progress in developing its tax system. The government introduced various laws to broaden the revenue base, including legislation on income tax, sales tax (later replaced by value-added tax), excise duty, and customs duty. However, the

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Analysing the government’s justification behind the Finance Bill

The Finance Bill 2023 proposes a raft of tax measures, some of which appear to have explored some uncharted territory. This is the first Bill under the new regime and it is grappling with several challenges. A good number of the proposals are aimed at

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Analyzing the Pros and Cons of Exchange Rate Fluctuation

In a recent visit to Kenya, IMF managing director Kristalina Georgieva held discussions with President Ruto and members of the Cabinet on possible policy recommendations concerning Kenya’s recovery from the exogenous economic shocks the country is experiencing. In a bid to address economic growth and

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Exploring the Evolution of Excise Duty in Kenya: From Sin Tax to Revenue Generation

Excise tax is a levy applied selectively on particular goods and services.  The main aim of this levy is to raise substantial revenue for the government at relatively low administrative or compliance costs.  Excise taxes are mainly levied at relatively high rates on a few

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Tax Appeals: Examining the Impact of ‘Pay to Play’ on Access to Justice and Cash Flow Constraints for MSMEs

‘Pay to play or pay to be played?’ Sections of the Finance Bill 2023 have caused a buzz amongst them the amendment of Section 32 of the Tax Appeals Tribunals Act to cause taxpayers who seek an appeal on the Tribunal’s decision at the High

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A solution or a grasp at straws? Assessing the Feasibility of the Proposed National Housing Development Fund

As per the last census, conducted in 2019, the total population of Kenya was 47,564 million people. 31% of this total population resides and lives in cities and urban areas, with most of the country’s population still residing in rural settings. Despite that being the

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Unveiling the Economic Ramifications: The Impact of 16% VAT on Fuel and Fuel Products

The recent proposal to increase the Value Added Tax (VAT) imposed on petroleum from a rate of 8% to 16%, is bound to impact fuel prices and is poised to reverberate across various sectors of the economy. The VAT rate of 8% on petroleum products

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Finance Bill 2023: Is it the Breaking Point for Overburdened Kenyan Taxpayers?

The Finance Bill, 2023 which has got many tongues wagging across the country was tabled before the National Assembly on Thursday, May 4, 2023, by the National Treasury. The Bill proposes an array of tax changes geared towards expanding the tax base and raising revenue

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Rearranging the payment systems landscape: Exploring how banks and telecoms can deeply disrupt payment systems

The Central Bank of Kenya (CBK), on Wednesday, May 4, 2023, launched the Kenya QR Code Standard, in an event that was graced by leading players in the telecom and banking sectors. The implication is that going forward, payment service providers like Safaricom, alongside leading

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Cyber security in Kenya: Lessons to learn from attack on state agency and insurance firm

“First, they came for the public sector, then for the private sector, then they came for government officials” So would run a poem about the recent happenings in the cybersecurity sector in Kenya. On March 1, 2023, Medusa, a ransomware organisation, targeted Kenya and hacked

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Importation of cheap food by state firm is not without ripple effects

The  Kenyan government announced that it will import large quantities of rice, cooking oil, sugar, wheat and beans duty-free through the Kenya National Trade Corporation (KNTC) as part of efforts to tame the rising cost of essential commodities in Kenya. The KNTC is a State

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An overview of the 2022 Tax Expenditure Report

The 2022 Tax Expenditure Report was released by the National Treasury with the goal of promoting data accessibility and transparency while providing information for tracking and analysing tax expenditures. Tax expenditures are utilised to accomplish particular policy goals by enacting targeted preferential tax measures that

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Inside Kenya’s Public Debt Dynamics and the Medium Term Debt Management Strategy (MTDS), 2023

  The “Why” of Debt Pre-cursorily, debt is indeed a double-edged sword. Wise and moderate use of the same, history has shown, results in improved welfare. Improper, imprudent and over-indulgence in debt, may end up being calamitous. On one hand, for households, individuals and private

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3rd February Trade and Financial Services Round Up

Kenya EPRA reveals second plan to increase cost of power The Water Resources and Management Authority (WARMA) is the latest State entity to seek a bigger pie of the electricity bills in what looks set to further increase the cost of power. WARMA has applied

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Cause of delay to broaden revenue base via minimum tax

Section 12D of the Income Tax Act was introduced via the Finance Act of 2020 which sought to impose a minimum tax of 1% on gross turnover. The tax rate was introduced to ensure that everyone, regardless of whether they make a profit or loss,

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Explainer: What you need to know about Kenya’s Privatisation

Bill, 2023 At the core of national conversation lately is a proposed legislation seeking to govern the process of privatising state-owned companies and entities. The Privatisation Bill, 2023, which is at the public participation stage, seeks to streamline the regulatory and institutional framework for the

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A return of the politics of tax

Taxation in Kenya has taken a political twist in a week that saw President William Ruto train his guns on former President Uhuru Kenyatta and businesses associated with his family. Speaking a day after Azimio leader Raila Odinga held a rally at Jacaranda grounds, Ruto

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Hustler Fund: The question of defaulters amidst plans to roll out second phase

The Hustler Fund, which was launched late last year and has been in operation for over two months now, has so far disbursed Kshs. 15.9 billion in loans with about half of that money (Kshs. 7.7 billion) being repaid. 18.4 million Kenyans are subscribed to

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Understanding the Cytonn Schemes under liquidation

After a recent court ruling on Cytonn’s two funds, the CEO, Mr. Edwin Dande, has had occasion to shed light on what happened with the two portfolios that are to be liquidated and the challenges attending to this process.  Cytonn High Yield Solutions (CHYS) and

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Snooping on tax evaders: Balancing between protection of personal data and KRA’s bid to monitor transactions

As the world marks Data Privacy Day on 28th January 2023, Kenya has been busy this week with a series of activities organized by the Office of the Data Protection Commissioner (ODPC) to commemorate the day. The week-long events will culminate in a two-day Data

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Michael Kamau Kamiru is a new board member at KRA

Mr Kamiru is currently the Head of Governance, Risk and Compliance, at Jubilee Allianz General Insurance Limited. He is a Finance Management and Risk Management professional with over 27 years of demonstrated leadership and management experience in the Kenyan insurance industry. Mr Kamiru also has

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20th January 2023 Trade and Financial Services Round Up

  Kenya   Users allowed to sue Safaricom over clients’ bank details access  The High Court has allowed millions of Safaricom subscribers to join a class action suit against the telecoms operator over a clause in the SIM card registration rules that allows the firm

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13th January Trade and Financial Services Round Up

Kenya State bursts recurrent budget forecast by Sh81.7bn President William Ruto’s administration projects expenditure for the day-to-day running of the government is Sh81.7 billion more than what the previous regime budgeted, pointing to piling spending pressures, including salaries and wages. The Treasury has forecast recurrent

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Taxing the digital economy: Indepth look at DST, loopholes and how to get it right

The global economy has gone digital. This has increased the issue of tax avoidance and tax equity and sparked an increase in digital taxes worldwide, therefore increasing the number of challenges to trade law. Kenya is one of the nations that have rolled out a

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Broadening the tax base: A look at Financial Derivatives Regulations 2022

In the financial year 2022/23, Kenya government revenues are projected to increase to Ksh 2.4 trillion (17% of GDP), an increase from the Ksh 2.06 trillion (16.3 percent of GDP) collected in the year ended June 2022. This is slightly above the developing country’s average

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Banks to use Treasury bonds as loan collateral

As part of measures aimed at increasing industry liquidity and relieving the Central Bank of Kenya (CBK) from frequently having to bail out cash-strapped institutions, banks will soon be able to borrow from one another using government debt securities as collateral. The CBK implemented this

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Tax transparency: Country-by-Country reporting requirement in Kenya kicks in

What is country-by-country reporting? Multinational Enterprise Groups (MNEs) that are tax resident in Kenya with gross revenues of KSh 95 billion or more are required to submit an annual return of income  for the year 2022 and subsequent years. The return should detail the group’s

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 Ruto regime revamps housing project under Sanduku initiative to give Kenyans affordable houses

One of the fundamental social and economic rights is housing, which is established in our Constitution. During his inauguration as the fifth President of Kenya, Dr William Ruto, in his speech, outlined specific areas which are a priority for his administration in the next five

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KRA walks a tightrope after government proposes a raft of measures to increase revenue

In the financial year ended June 2022, the Kenya Revenue Authority (KRA) recorded a historic high of KSh2.031 trillion against a revenue target of KSh1.882 trillion, representing a 21.7 per cent growth and the highest ever in its history. Despite this tremendous performance, the government

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Customer inclusion is inevitable in tax administratio

By Grace Wandera Once again, the Kenya Revenue Authority (KRA) is planning to mark the month-long taxpayers’ celebrations in the traditional month of October. A look at this year’s theme “Leaving no one behind” provokes some interesting thoughts.  Given that the payment of taxes is

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Inflation Adjustment explainer

What is Adjustment for Inflation? The Excise Duty Act and Miscellaneous Fees and Levies Act provides for the Commissioner-General of the Kenya Revenue Authority, by Gazette Notice, to adjust the specific rate of excise duty every two years to take into account inflation. Recently, the

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Fintech in Africa (Part 1): African tech boom is more than a buzz; future is bright

The financial industry has benefited greatly from the buzz surrounding the African tech boom, with reports of African fintech businesses raising money becoming commonplace in tech media. It accurately reflects how much venture capitalists and investors have attracted financing to the fintech sector.  Fintech has

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Top banks’ performance in Kenya Banking Sentiment Index, 2022, and areas to improve

Deloitte delivered the Kenya Banking Sentiment Index report indicating that M-Pesa had more positive appreciation  from clients than conventional banks as confirmed in the Net Sentiment Index. It partnered with DataEQ to monitor over 330,000 Twitter posts that mentioned Co-operative Bank, Equity Bank, Absa, Stanbic,

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Highlights of the 2022 Kenya Financial Sector Stability Report

The Central Bank of Kenya (CBK) recently released the 2021 Financial Stability Report which discusses developments and risks in Kenya’s economy and financial sector in the post-Covid–19 pandemic recovery phase, and details how the financial sector has remained resilient.  The report outlines some of the

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Money laundering and terrorism financing: Kenya at medium risk as CBK publishes inaugural report

On Wednesday, July 27, 2022, the Central Bank of Kenya launched the Money Laundering and Terrorism Financing National Risk Assessment Report (NRA). The report identifies and assesses Kenya’s Money Laundering (ML) and Terrorism Financing (TF) risks at a national and sectoral level. The overall ML

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Creating Tax Certainty: A look at the Kenya Draft National Tax Policy

The only feasible way to get money to pay for government expenditure on the products and services that most of us need is through taxes. However, establishing an effective and fair tax system is far from easy, especially for developing nations that seek to integrate

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Nairobi International Financial Centre and Kenya’s Critical Development Path

The set-up of the Nairobi International Financial Centre is a major milestone in Kenya’s ongoing efforts to become an Upper Middle-Income Country (UMIC). While its significance will largely become clear with time, the set-up of International Financial Centres (IFCs) generally, often are precursors for market

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Here is what Digital Credit Providers need to know as licensing deadline approaches

The Central Bank of Kenya on Tuesday, May 17, 2022, issued a press release in relation to licensing of Digital Credit Providers (DCPs). The deadline for licensing of DCPs is September 17, 2022.  The announcement by CBK serves to remind DCPs that are yet to

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What KRA needs to do before leveraging on digital intelligence to weed out tax evaders

The Kenya Revenue Authority (KRA) has announced the establishment of an advanced forensic laboratory that will provide the authority the capability to access financial data from taxpayers’ computers and mobile phones, in a bid to detect tax evasion and to reduce financial fraud.  The Kenyan

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Agroecology is the magical bullet to Food Insecurity and Sustainable Farming in Kenya

Agroecology is the application of ecological principles to agricultural systems. Studies reveal that agroecology offers solutions to the ongoing farming and food security challenges in Kenya such as drought, hunger, poverty, and inequality. Agroecology supports small scale farmers in diversity and ensures long-term balance between

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Betting on consolidation of the insurance industry to increase product penetration

As of 2020, the insurance penetration rate in Kenya was at 2.17 percent, down from 2.34 percent in the preceding year. Kenya has maintained a descending trajectory since 2016, when the penetration rate was at 2.78 percent.  Research conducted by the Insurance Regulatory Authority (IRA)

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Proposed Regulations on Share Buybacks under the draft Capital Markets (Securities)(Public Offers Listings and Disclosure) Regulations, 2022

The Capital Markets Authority (CMA) has published draft rules that will, among other things, provide for share buybacks by listed companies in Kenya. Despite the Companies Act, 2015, introducing the concept of share buyback in the country, the CMA expressed concerns that the move could

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The delicate balance of safeguarding stakeholders and creditors’ interests during administration

The essence of administration is to rescue companies that are under financial distress while safeguarding the interests of creditors and other stakeholders in the company. One of the key objectives of administration as set out under the Insolvency Act, 2015 is to achieve a better

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Treasury avoids tricky decision on long-term action on fuel

The good news from the Budget Statement was that fuel would be spared the proposed 10 per cent increase in Excise Duty that the Treasury has asked the National Assembly to impose on Kenyans when the Finance Bill is passed.  The bad news, according to

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Tax Talk Series webinar: A look at post Budget effect on taxes

The Tax Talk Series hosted by the Kenya Revenue Authority held a webinar on April 8, 2022, to discuss the post budget effects on taxes. The session which lasted for close to an hour was moderated by Nixon Omondi – Manager, Digital Economy, Tax Office.

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New regulations set to tame predatory digital lending practices in Kenya

Digital lenders have up to September 2022 to comply with regulatory requirements, including licensing by the Central Bank of Kenya (CBK). The Central Bank of Kenya (Digital Credit Providers) Regulations, 2021 (“Draft Regulations”), which are expected to be published before the end of March 2022,

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Cybersecurity in Kenyan Fintech, threats, trends and solutions: Highlights of GIZ Report, 2022

Digital payments are progressively entering the mainstream, in correlation to the increased access, use, and adoption of ICTs in Kenya. However, the transition to and eventual adoption of digital payments will bear its own risks, in the form of cybersecurity risks.  Against this backdrop, “A

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Shadow Budget Report casts doubt on economic recovery as rising debt and electoral jitters persist

The 2022/23 Annual National Shadow Budget by IPFK™ for Kenya is the second edition, and it is one of its kind in the country.  The production of the Shadow Budget was supported by the integrated marketing firm Oxygéne Marketing and Communication Limited with the aim

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The security initiative in CBK’s National Payments Strategy 2022-2025

In this second part of our series on the Central Bank of Kenya National Payments Strategy for 2022 – 2025 (NPS Strategy), we examine CBK’s strategic initiatives under the principle of security. A core focus of the strategic initiatives under security is ensuring adequate protection

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A first for mobile digital lenders after Branch International acquires majority stake at Century Limited

On February 9, Branch International Limited acquired a majority stake in Century Microfinance Bank Limited effective January 1, 2022. This follows CBK’s approval on December 30, 2021, under Section 19 (4) of the Microfinance Act and approval by the Cabinet Secretary for the National Treasury

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CBK’s strategic initiatives in the National Payments Strategy: Key highlights

The Central Bank of Kenya (CBK) unveiled its National Payments Strategy for 2022 – 2025 (NPS Strategy) this week. The NPS Strategy is anchored on the vision of a secure, fast, efficient and collaborative payments system that supports financial inclusion and innovations that benefit Kenyans.

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Central Bank Digital Currency discussion: The pros, cons and reading between the lines

Central Bank Digital Currency discussion: The pros, cons and reading between the lines The Central Bank of Kenya (CBK) recently released a discussion paper on a Central Bank Digital Currency (CBDC) intending to tease out a conversation around the possible introduction of a digital currency

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Taxman’s eye on social media posts good for enhanced compliance

By Brian Kuira Recent media reports that the Kenya Revenue Authority (KRA) would train its eyes on taxpayers who display luxurious lifestyles on social media but under-declare their income sparked a heated debate among Kenyans.  A section of Kenyans termed the move a misplaced priority.

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What you need to know about unclaimed financial assets

Recent media revelations paint a shocking picture of vast amounts of unclaimed assets that lie idle despite Kenyans going through a tough economic season. According to the media reports, the amount of unclaimed assets currently stands at KSh 55 billion, with a paltry KSh 1

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Central Bank of Kenya Diaspora Remittances Survey 2021

This week, the Central Bank of Kenya released the results of the first-ever Diaspora Remittances Survey (the “Survey”). The Survey was conducted between March and May 2021 by the Central Bank of Kenya in collaboration with the Kenya National Bureau of Statistics and the Ministry

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KRA records excellent performance, Exceeds target in first half of FY 2021/22

The Kenya Revenue Authority (KRA) has recorded an above-target revenue performance in the first half of the Financial Year 2021/2022 after collecting KShs. 976.659 billion against a target of KShs. 929.127 billion thanks to higher tax compliance. Patriotic taxpayers keen on facilitating national development allowed

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Hike in comprehensive motor insurance premiums rubs Kenyans the wrong way

Insurance customers have been burdened with an increase in insurance rates beginning January 1, 2022. A number of insurance companies have indicated that the increase will be up to 50% of premiums while others have indicated that they will not offer a comprehensive insurance cover

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Brands should embrace online content creators

By: Grace Wandera Brands have since time immemorial invested in every opportunity available to enhance their presence and reputation among the target market. Maintaining a good reputation and presence is among key priorities for every brand. While a number of years ago brand consciousness was

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Greening Kenya’s Banking Sector

By Dr. Patrick Njoroge We have a problem. The recently released State of the Climate in Africa 2020 report, indicates that in 2020, the climate indicators in Africa, were characterized by extreme weather events such as floods and droughts, increasing temperatures and accelerated rise in

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Mergers & Acquisitions: Lessons to Learn From Rubis And Gulf Energy Dispute

Gulf Energy and Rubis Energy are battling in court over privacy and security issues that arose after an acquisition. Rubis Energy acquired KenolKobil in 2019, a transaction that enabled it to acquire Gulf Energy. In the transaction, Gulf Energy transferred all its ICT assets including

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Highlights of the State of the Banking Industry Report, 2021

The Kenya Bankers Association Centre for Research on Financial Markets and Policy released the third annual State of the Banking Industry (SBI) Report on 27th July, 2021. It focuses on the impact of the COVID-19 pandemic on the banking industry and its pass-through effects to

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Key Strategies in the Transformation of Kenya’s Tax Administration

Dr Mohamed Omar – KRA Commissioner – Strategy, Innovation and Risk Management Tax systems go through changes over time, as economies and societies equally evolve. Tax administration in Kenya has been going through reforms, most notably over the last ten years when the intentional use

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The draft Capital Markets (Investment Based Crowdfunding) Regulations, 2021.

The Cabinet Secretary to the National Treasury and Planning is proposing to make the Capital Markets (Investment Based Crowdfunding) Regulations, 2021. The Regulations will apply to investment-based crowdfunding platforms in Kenya. They will also apply to persons who are operating investment-based crowdfunding platforms in Kenya. 

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More than 5.5 million taxpayers file returns as filing period closes

More than 5.5 million taxpayers filed their tax returns for the year 2020 as the filing period officially closed at midnight on Wednesday 30th June 2021. This means that 1.1 million more taxpayers turned out to file their returns this year compared to the 4.4

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File your Annual Tax Return to avoid penalties for Non-compliance

By Rispah Simiyu  Worldwide, a good tax compliance score is a fundamental aspect for the smooth running of any business or any profession. Contrary to popular belief, tax compliance is not entirely defined by payment of taxes only. Filing of tax returns is equally an

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The Kenya Revenue Authority launched the 8th Corporate Plan 2021/2022 – 2023/2024

This Plan is the eighth in the life cycle of the Authority and runs under the Theme: Revenue Mobilization through tax simplification, technology-driven compliance and Tax Base expansion. In this Plan, the Vision remains to be ‘A globally trusted revenue agency facilitating tax and customs

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Finance Bill, 2021

TAX AMENDMENTS HIGHLIGHTS Introduction: The Finance Bill, 2021 was published on 05th May 2021. The reason for publishing the Bill early, as was the case in 2020, was to comply with the ruling by Justice Winfrida Okwany referencing Petition Number 253 of 2018 where the

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Revamped Tax Appeals Tribunal means a boost to resolution of tax disputes

By Paul Matuku In the course of the day-to-day tax administration process, tax disputes are inevitable. Tax disputes arise especially where a taxpayer disagrees with a decision made by the Commissioner on a given tax matter. There are various legal frameworks that have been put

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Minimum tax is an idea worth pursuing

Taxing businesses on profits as
it has always been means
that loss making entities
comfortably escape the
taxman’s noose. Bear
in mind that the onus of
determining profits or losses
rests on the taxpayer.

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Kenya National Payments System (NPS) Vision and Strategy 2021-2025

The Central Bank of Kenya
has come up with Kenya
National Payments Vision
and Strategy 2021-2025
to regulate this area more
effectively. The paper is open
for public participation until the
31st of January 2021.

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Minimum tax to enhance equity, inclusivity in tax payment

In order to expand
the tax-base in
the country, the
through the
Finance Act 2020,
has introduced
a raft of new tax
measures which
took effect on 1st
January, 2021. One
of the tax measures
implemented early
this month is the
minimum tax.

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2021 ushering in tax changes

Kenya has greatly been affected by the outbreak of Covid-19 that was subsequently declared a global Pandemic. Businesses had to minimize their activities due to the Pandemic. This led to job cuts, unpaid leave and redundancies as profitable entities moved into losses. Millions of Kenyans

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Kenya on course to implement global tax exchange of information protocols by 2022

SPECIAL FEATURE: The Kenya Government has reiterated its commitment in implementing international standards on transparency and exchange of information for tax purposes as part of a national effort to curb tax evasion and illicit financial flows. Speaking at the OECD Global Forum on Transparency and

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Government set to roll back COVID tax relief measures in January 2021

Per statistics by the World Bank, Kenya is set for a relatively short setback from COVID-19 with a s 4 percentage-point dip in growth this year, and 5.2 percent growth returning in 2021. This is still a permanent loss of 5 percent of GDP over

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Demystifying Digital Service Tax

On 27th November, 2020, the Kenya Revenue Authority (KRA) hosted an online sensitization forum on Digital Service Tax (DST). In his presentation, Mr. Nickson Omondi provided highlights of the policy and legislative changes that have been effected in order to operationalise DST which comes into

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Summary of the consolidated government investment report 2019/2020

Introduction The Consolidated Government Investment Report 2019/2020 (“the Report”) is put together in accordance with Section 89 of the Public Financial Management Act, 2012.  The Section requires the Cabinet Secretary for Public investments to submit to Parliament, a detailed status of Government Investments for each

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KRA Commissioner General elected as member of ATAF executive arm

The Commissioner General of the Kenya Revenue Authority was nominated as a Member of the Governing Council of the Africa Tax Administration Forum (ATAF). He was voted during the ATAF General Assembly meeting held 4th November, 2020 by 13 member states, accounting for the highest

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Highlights of Virtual 2020 Taxpayers Day- 6th November 2020

The main objective of the occasion was to recognize taxpayers from various sectors of the economy for their contribution towards nation-building. This year’s celebration is anchored on the theme; “Enhancing Tax Administration for Economic Sustainability’’ similar to the Tax Summit. During the meeting, the Commissioner

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Highlights of Kenya Revenue Authority 6th Annual Tax Summit

The 6th Annual Tax Summit that took place on the 4th and 5th of November, 2020, sought to advance conversations based on the four strategic goals that guide its 7th Strategic Plan by driving public and international participation in discussions geared towards providing solutions for enhancing

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Combating Tax Evasion: Intelligence-driven approaches

The commendable progress made so far can only mean one thing: the days for tax
evasion perpetrators are continually diminishing. Through such collaborations, the
country is now better equipped to emancipate tax revenues trapped in the intricate
web of tax evasion schemes.

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Is Huduma Number the future of KYC

On Wednesday,
during the
unveiling of the
Central Bank
branch in Kisii
County, the
President said
that the rollout of
Huduma Namba
will change
operations in the
banking industry.
He said that the
new system will
make it easier
for banks to
capture details of
clients’ increasing
confidence in
dealing with them.

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Excellent service delivery is key to KRA’s successful delivery of mandate

CRM is a state-of-the-art system which has revolutionised how KRA engages with taxpayers virtually. Diversification of the virtual customer assistance platforms is informed by the need to take care of the equally diversified base of taxpayer

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President Uhuru Kenyatta signs County Revenue Allocation Bill into law

President Uhuru Kenyatta signs revenue County Revenue Allocation Bill into law President Uhuru Kenyatta signed the 2020/2021 County Revenue Allocation Bill into law on Thursday 9th October 2020. This Act allocates a total of Sh369.87 billion to counties. A breakdown of the allocation comprises equitable

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