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A reprieve for pension saving?
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💰 Pension Contributions’ Tax Free Limit Raised by 50% to Address Inflationary Burden
Savings
The Retirement Benefits Authority (RBA) has announced that amendments to pension laws, which include raising the tax deductible contribution limit to KSh 360,000 annually, are set to be implemented.
The authority says that the review of this limit, which was initially set at KSh 240,000 per year (KSh 20,000 per month), is a relief to individuals and employers saving up in pension schemes.
To curb premature withdrawals of pension savings, individuals will only be exempt from paying taxes on benefits if they attain retirement age as specified on their respective scheme or after a minimum membership period of 20 years.
Post-retirement medical funds will be tax-deductible up to KSh 15,000 per month to address the rising medical costs, and reduce tax liabilities for income earners.
The rising deductions of wages has worried Kenyans. Last year, the infamous Finance Bill 2024 was set aside after a series of widespread protests. The government was criticized for pursuing more taxes, overlooking the financial stress that many paychecks were subject to.
Meanwhile, the pain continues this year. Kenyans are set to face new deductions by the National Social Security Fund (NSSF) starting this year.
Today's Poll
Do you think raising the limit of tax-free pension contributions will help income earners feel less burdened? |
Yesterday's Poll Results
Are you optimistic that Kenya's economic growth will recover this year?
🟨⬜️⬜️⬜️⬜️⬜️ Yes, there are positive signs (17.86%)
🟩🟩🟩🟩🟩🟩 No, we are in the pits (82.14%)
👮🏿♂️ Canadian Entrepreneur Acquires KK Security’s Parent Company
KK security
The Competition Authority of Kenya (CAK) has approved the proposed acquisition of Doctor No Parent Limited – the parent company of KK Security – by Canadian entrepreneur Stephan Crétier.
🔸The buyout, deemed unlikely to disrupt competition or elicit negative public interest concerns, will solidify Crétier’s position with over 50% shareholding.
🔸Doctor No Parent Limited is incorporated in Canada and operates in Kenya through GardaWorld, trading as KK Security Limited.
🔸Crétier, the CEO of GardaWorld, has had indirect control of the parent company, so the ongoing acquisition deal will shift the the company’s ownership from joint to sole control.
💡 Green Electricity Generation Declined in Q3 2024-KNBS
Electricity generation
Electricity generated from green sources declined in the third quarter of last year, while production from hydropower sources increased significantly, data from the Kenya National Bureau of Statistics shows.
🔸Thermal electricity generation declined by 10.2 per cent while electricity from hydro increased by 21 per cent to 950.1 million KWh.
🔸Electricity generated from geothermal, wind and solar declined by 7.8 per cent, 8.2 per cent, and 13.4 per cent respectively.
🔸Overall, total electricity generation declined by 1.4 per cent, from 3,287.6 million kilowatt hours (KWh) in the third quarter of 2023 to 3,240.6 million KWh in the similar period of 2024.
🏙️ Nairobi Bans Hawking Along Major Streets
City Hall, Nairobi
The County Government of Nairobi has issued a notice to hawkers ordering them to vacate major streets along various roads in the Central Business District (CBD).
🔸The notice posted on the 6th January 2025, requested hawkers to move to backstreets and lanes between Tom Mboya street and Kirinyaga Road.
🔸Hawkers will also be allowed to run their businesses along these designated areas between 4 pm and 10 pm in the evening.
🔸The notice signed by the Nairobi County Secretary Godfrey Akumali also bans hawking along Moi Avenue, Haile Selassie Avenue, Kenneth Matiba Road, Latema Road, Ronald Ngala Street, Mfangano Street, Hakati Road and River Road.
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