It is a new year that brings renewed hope to Kenyans who have had it rough the previous year economically. However, the new year has also presented new ways the William Ruto-led administration can fund its ambitious 3.64 trillion next budget.
President Ruto intends to collect more taxes than his predecessor by far.
The prices of basic commodities and services are therefore set to increase from today by order of the Treasury, the Central Bank of Kenya, and Kenya's chief loaner the IMF which wants the country to collect as much revenue as possible in order to offset huge loans.
The price of electricity will increase by 15 per cent after the subsidy put in place by former President Kenyatta expires today. The cost of diesel and kerosene will also increase after Ruto's subsidy reaches its end.
The government had slashed school fees in the aftermath of the Covid virus. This saw parents get a fee payout of up to Ksh 8,000. President Ruto's administration will not extend the subsidy henceforth. Extra county and national schools will pay 53,000 while students in county schools will pay 40,000.
Transfer of property will also cost upward of 15 per cent after the Act was revised soon after Dr. Ruto took office. If you want to transfer ownership of land, shares, securities, or buildings you will have to dig deeper into your pockets from today.
Finally, and perhaps the most consequential economic shakeup is the reinstatement of service fees in mobile money transfers. The CBK announced early last month that it will no longer support the removal of the levies and asked banks to put in place service charges as they deem fit.
Transfering money from the bank to Mpesa will therefore cost you a percentage of the whole amount. This is a blessing for banks that incurred a decrease in their none interest profits when the policy was put in place more than two years ago.
Source: The Sunday Standard.
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