RWK Financial Compass

  The Kenya Revenue Authority (KRA) has recently launched initiatives to integrate its tax systems with banks and telecommunications companies (telcos) to improve tax compliance and enhance revenue collection. This move is part of a larger plan to use technology to boost tax administration.

  In a significant ruling that has both stirred debate and provided clarity, the High Court of Kenya on 22 nd October 2024 upheld the constitutionality of the Housing Levy. This decision marks a pivotal moment in Kenya’s vision for affordable housing, potentially affecting millions of Kenyans by ensuring continued funding for housing projects. The Ruling: The three-judge bench dismissed petitions against the levy, arguing that the process leading to its enactment included adequate public participation. The court's decision supports Section 4 of the Affordable Housing Act, which mandates a 1.5% deduction from gross salaries , highlighting its alignment with constitutional principles aimed at achieving societal good through affordable housing.

  The Kenyan government has announced a bold move to transform all M-PESA paybills and Till numbers into virtual Electronic Tax Registers (ETRs) by December 25, 2024. This initiative is part of the government’s broader strategy to integrate mobile money transactions into the tax framework, aimed at improving compliance and capturing previously unreported business activities. As mobile money plays a critical role in Kenya’s economy, this new directive has far-reaching implications for businesses, consumers, and the national revenue collection system. The Process Implementation Timeline and Scope Deadline: December 25, 2024. Scope: All M-PESA paybills and Till numbers will be converted into virtual Electronic Tax Registers (ETRs). Steps for Integration System Integration : KRA will collaborate with mobile service providers (e.g., Safaricom) to ensure that M-PESA paybill and Till transactions are seamlessly integrated into KRA’s tax systems. Monitoring Mechanism : KRA will monitor all...

                                                              Social Health Authority Registration The  Social Health Authority (SHA)  in Kenya is set to officially launch on  October 1, 2024 , marking a significant transition from the National Hospital Insurance Fund (NHIF). As of late September 2024, approximately  1.2 million individuals  have registered under the new SHA scheme. STEPS FOR REGISTRATION To register for the  Social Health Authority (SHA)  in Kenya, follow these steps: Online Registration Visit the SHA Website : Go to  SHA.go.ke . Click the “Register Individual” or “Register employers ”Button on the homepage. Fill Out the Registration Form : Enter your personal details, including: National ID Numb...