RWK Financial Compass

  From a bill into a Law 1.Drafting of Bills: The legislative process typically begins with the drafting of a bill. A bill can be proposed by a Member of Parliament (MP), a committee, or the government. 2.First Reading: The bill is introduced in either the National Assembly or the Senate, depending on its nature. This introduction marks the first reading of the bill. 3.Committee Stage: After the first reading, the bill is referred to a relevant committee for detailed scrutiny. The committee may hold public hearings, gather evidence, and propose amendments to the bill. 4.Second Reading: The bill is debated by the Members of Parliament or Senators during the second reading. This stage allows for a general discussion on the principles and merits of the bill. 5.Consideration in Detail: After the second reading, the bill is considered clause by clause. Members have the opportunity to propose amendments, which are debated and voted upon. 6.Third Reading : The bill is debated...

Background The journey of the Housing Levy in Kenya began with its proposal on June 26, 2023, as part of the Finance Bill of 2023, mandating a 3 percent deduction from employees' gross salaries towards the National Housing Development Fund (NHDF). Initially contentious, the levy evolved from a contribution to a mandatory deduction, directing funds towards the Affordable Housing Program. Despite heated debates and objections during the third reading in June-July 2023, the proposal was ultimately passed, with 184 members of the National Assembly in support. Amendments ensued, responding to stakeholder feedback by reducing the rate to 1.5 percent and transferring the levy into a tax collected by the Kenya Revenue Authority (KRA). Finally, in March 2024, President William Ruto signed the Affordable Housing Bill into law, expanding the levy's contributors to include individuals in the informal sector, thus addressing previous constitutional concerns. Current Changes On ...

The Kenya Revenue Authority's (KRA) recent attempt to impose a 16 percent Value Added Tax (VAT) on interchange and merchant service fees collected by banks during debit or credit card transactions has faced a significant legal setback. The Tax Appeals Tribunal ruled in favor of Prime Bank, blocking the KRA from enforcing the tax on the bank. This decision affects Prime Bank and sets a precedent that could influence the outcome of similar cases involving other financial institutions. Prime Bank's appeal to the Tax Appeals Tribunal was prompted by KRA's demand for Sh17,361,157 in taxes, penalties, and interest between January 2017 and December 2019. The tax authority argued that the interchange fees collected by Prime Bank for facilitating transactions between cardholders and merchants constituted fees for management and professional services and, thus should be taxed under VAT. However, Prime Bank contended that these fees were part of the normal processing charges necessa...

In its commitment to supporting businesses, particularly in the informal sector, the Kenya Revenue Authority (KRA) has introduced "eTIMS Lite," a simplified electronic Tax Invoice Management System tailored for non-VAT registered taxpayers. Accessible through USSD and web-based platforms for businesses using individual KRA pins. Steps while using USSD 1. Dial *222# 2. Select option 5 for Tax Payment (KRA) and Click on Send 3. Enter Option 2 - Sales Invoice and Click on Send 4. Proceed to enter your credentials as prompted to finish registration. 5. Redial the USSD after registration to make a sale and select the sale invoice 6. After you enter the rest of the details like product and quantity, a link will be sent to you via SMS for invoice. For web-based: https://www.kra.go.ke/images/publications/KRA-Individual-Web-Invoicing-Context.pdf Key Features and Benefits of eTIMS Lite I)         Accessible Solutions: eTIMS Lite provides a...

Consistency and focus are powerful traits that can lead to remarkable achievements. Here's why: 1.Builds Habits: Consistency forms habits, and habits drive actions. When you repeatedly engage in a behavior or task, it becomes ingrained in your routine, making it easier to maintain and progress. 2.Achieves Mastery: Focus allows you to direct your energy and attention towards mastering a particular skill or area of interest. By consistently practicing and refining your skills, you gradually become an expert in your field. 3.Increases Efficiency: Consistently focusing on your priorities helps you streamline your efforts and eliminate distractions. This leads to increased productivity and efficiency in achieving your objectives. 4.Builds Trust and Credibility: Consistency in your actions, words, and behaviors builds trust and credibility with others. People rely on you when they know they can expect consistent results from you. 5.Overcomes Challenges: Consistency and focus...

The concept of "financial freedom" can vary depending on individual perspectives and goals, but here is a common breakdown of seven levels of financial freedom : 1. Clarity: This level emphasizes the importance of understanding your current financial situation and setting clear goals. Without knowing where you stand financially, it's difficult to make progress towards your objectives. 2. Self-Sufficiency : At this stage, you're able to cover your expenses without relying on outside assistance. This might involve living paycheck-to-paycheck or taking on loans to meet your financial obligations. 3. Breathing Room: Achieving breathing room means having money left over after covering your living expenses. This surplus can be directed towards building an emergency fund and investing for the future. 4. Stability: Level 4 entails paying down high-interest debt and establishing a robust emergency fund. Financial stability ensures that unexpected events won't dera...