Welcome to our 14th Money Weekly Roundup of 2023. This week, the Ministry of Health gazetted the commencement of the Social Health Insurance Act (SHIF), 2023, that takes yet another slice from the shrinking payslip of employed Kenyans.

This is as the World Bank revealed that a Ksh1.8 trillion loan package to Kenya is in the works, which comes as a major relief to a country that is facing a dollar crisis.

Below, as we do every Friday on Money Weekly, we break down for you the top money news from the last seven days that may have an effect on your pocket.

What happened this week

💉 Goodbye NHIF, as Social Health Insurance Act (SHIF), 2023, Kicks In

If you are employed, brace yourself for a 2.75% deduction on your gross pay as the SHIF Act takes effect, replacing the National Health Insurance Fund (NHIF). Regulations on the operationalisation of the Act are expected to be announced soon, and may affect salaries processed from November 22.

• Social Health Authority (SHA). The SHA board which includes COTU’s Francis Atwoli, has already been appointed. It will govern the fund.

• Mandatory Contributions: All Kenyan adults must be members failure of which may result in the denial of govt services. All non-Kenyans residing in Kenya for a period exceeding 12 months too must register. 

• President William Ruto on Sunday said SHIF should be operational by January 2024. Read More. 

💰 World Bank to Disburse Ksh1.8 Trillion to Kenya

The Kenya Kwanza government is breathing a sigh of relief after the World Bank revealed that a Ksh1.8 trillion loan package for Kenya is expected to be disbursed over the next 3 years. Disbursement aims to stabilise Kenya's economic outlook and support critical sectors. Read More.

This comes amid revelations that President Ruto’s administration cut subsidies, including for fertilisers, to zero in the first quarter of 2023/24 FY. This is in compliance with loan conditions set by yet another international lender, the IMF. Read More.

🎓 Kenya Primary Schools Bid Farewell to 8-4-4 Curriculum 

The last-ever Kenya Certificate of Primary Education (KCPE) results were released on Thursday marking the end of a 39-year era for the 8-4-4 curriculum in primary schools.

Only 2 incidents of exam malpractice were reported. The majority of the candidates (48.49%) scored between 200 and 299 marks. This ushers in the 2-6-3-3-3 competency-based curriculum (CBC), that reflects the country’s efforts to align the Kenyan education system with evolving global standards. Read More.

😃Good News for Dairy Farmers, Posta Employees

Dairy farmers received a much-needed boost after the Treasury allocated Ksh500 million to the New KCC, aiming to buy surplus milk and stabilise prices at a minimal Ksh 45 per litre. The current price per litre is Ksh35. Read More.

Elsewhere, in a positive turn, MPs have recommended adding Ksh800 million to the State department for broadcasting to help clear over Ksh500 million in salaries owed to Posta Kenya employees who have been unpaid for 5 months. The corporation is owed over Ksh2.7 billion by government agencies indicating the potential effects of pending bills on worsening liquidity constraints of firms. Read More.

💡 KPLC Approved to Recover Lost Revenue From Consumers

An increase in the cost of electricity is looming after the Energy and Petroleum Regulatory Authority (EPRA) greenlighted Kenya Power to recover the revenue it lost when President Ruto extended a 15% tariff cut by three months to April 1, 2023.

The extension did not provide a compensation mechanism for Kenya Power. With consumers taking a direct hit, this development highlights the broader implications of government decisions on daily life. Read More.

🏦 Banking Sector Resilience: Kenyan banks weathered economic storms, reporting increased earnings in Q3, 2023 results. Equity Group Limited, KCB Group Limited, and Co-operative Bank of Kenya among banks that announced results this week. Read More.

🌐 Skill Spotlight: What's in demand by employers in 2023? A new report highlights growing opportunities for TVET graduates and emphasises the significance of soft skills like effective communication in employability. Read More.

Want more details? Check our long-form weekly update here:

This week’s finance tips

Welcome to our Finance Tips section, where we empower you to take control of your financial journey.

This week, we'll share valuable insights and practical tips to help you navigate the world of money management. From building friendships with wealthy people to starting all over again when you need. Here are this week’s selection of our editorial team’s favorite tips and articles from across Money254, curated just for you:

Money254 MoneyTok of the week:

Prefer watching instead of reading? We’ve got you. This week, let's talk about the small money wins that deserve a pat on the back when you successfully accomplish them.

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We a ll hope to become successful one day. We hope to accomplish ambitious goals but along the way, we may feel demotivated. We make time ... See more

That’s a wrap for this week’s Money Weekly! Also, don’t forget to download the Money254 App on the google play store and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Sincerely,

Eric and the Money254 editorial team.