Happy new month and welcome to our 15th Money Weekly Roundup of 2023.

The start of the festive month may not be as exciting for many as Kenyans come to terms with the just-released draft regulations operationalising the Social Health Insurance Act (SHIF), 2023, that affirm proof of membership and up-to-date SHIF contributions will be a precondition for access to critical government services.

This is as the National Treasury publishes a list of 11 state corporations that the government is putting up for sale following the enactment of the Privatisation Act, 2023, a month back, in October.

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

🏥 Social Health Insurance (SHIF) Regulations Released

The Ministry of Health has pressed on with plans to roll out health care reforms under the SHIF Act, 2023, by publishing draft regulations to operationalise it despite a High Court ruling halting its implementation until February 7, 2024. Here are some highlights:

• No Upper Limit: Of the 2.75% deduction on gross pay for the salaried, there is no longer any capping on the maximum contribution. Under NHIF, there was a Ksh1,700 cap; a Ksh5,000 cap had been proposed for SHIF but didn’t make it to the regulations. Read More

• For the Unsalaried: If your income is not in the form of a salary, means testing will be used to determine your annual household income from which a 2.75% contribution will be required. You will be required to remit this as a lump sum 14 days ahead of the commencement of the cover.

• 25+ and unemployed? Well, the regulations consider you an independent household from your parents. You must contribute the minimum of Ksh300 per month (paid annually, upfront.)

• Can’t Afford to Pay Upfront? In a controversial move, the regulations provide for Insurance Premium Financing (IPF) where the unsalaried/unemployed will essentially be loaned the annual premium amount to pay back with interest. Read More

💼 Government Begins Privatisation of 11 State-Owned Enterprises

Barely a week after President William Ruto revealed the government’s commitment to sell off at least 35 state corporations, the National Treasury has announced the first 11 government-owned companies set to be privatised.

The list includes notable entities like the Kenyatta International Convention Centre (KICC), New Kenya Co-operative Creameries Ltd (New KCC), the Kenya Pipeline Company (Ksh3.1 billion 2021 FY net profit) and the National Oil Corporation of Kenya (NOCK). 

💡 So What: This development holds implications for both investors and consumers as the privatisation of state-owned enterprises may lead to changes in service delivery, market competition, and investment opportunities. Read More.

🌧️ Rains Bring Mixed Fortunes for Farmers 

Heavy rains and floods are causing havoc for tomato farmers, tripling the price of tomatoes due to transportation difficulties. Meanwhile, sugarcane farmers receive a glimmer of hope as sugarcane mills are set to reopen from today.

The reopening of sugarcane mills signifies positive news for a sector that has faced challenges in recent times. Weather-related challenges highlight the vulnerability of agricultural supply chains. Read More.

⚖️ High Court Suspends Ruling Halting Housing Levy Deductions

It was short-lived relief for employees on Tuesday after the High Court suspended its ruling declaring the 1.5% Housing Levy unconstitutional until January 10, 2024. This means the government will continue collecting the levy with the Lands CS affirming as much in a Wednesday warning to employers to comply or face a 2% penalty on the unremitted amount monthly.

With the suspension providing time for legislative adjustments, as already indicated by the National Assembly’s Finance and Planning Committee Chairperson Kuria Kimani, it potentially closes the door on hopes for a refund or the scrapping of the levy. Read More.

💼 Employment Jitters Continue

Employment woes in the country continue with the Federation of Kenyan Employers (FKE) reporting that 70,000 jobs have been lost in the last one year (between October 2022 and November 2023). FKE says 40% of employers have expressed intentions to cut more jobs indicating that employment instability remains a pressing issue in the country. 

💡 So What: For job seekers and employees, the report signals a challenging environment, emphasising the importance of adaptability and proactive career planning. Employers may need to reassess strategies to navigate economic uncertainties and retain talent. Read More.

📉 More Profit Warnings Hit the Nairobi Securities Exchange (NSE)

Crown Paints and WPP Scangroup have issued profit warnings, bringing the tally to nine listed companies anticipating lower earnings this year. Other affected firms include Longhorn Publishers, Sasini, Car & General, Nation Media Group, Centum Investment Company, Unga Group, and Kenya Power.

💡 So What: Understanding the specific reasons behind each warning can guide investment decisions amid the complex economic landscape. Warnings may impact dividends. Read More.

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

This week’s finance tips

Welcome to our Finance Tips section! As we navigate the intricate landscape of personal and economic finances, we bring you insights and strategies to empower your financial journey.

This week, we'll unravel key aspects of financial well-being, with topics ranging from family finance to saving money and what to do with your money as we gear up for the holiday season.

Money254 MoneyTok of the week:

Prefer watching instead of reading? We’ve got you.

Do you ever wish you could have better control over your money? Like making sure you have enough for what you need, saving for later, and avoiding owing money? This week, we are talking about what to include in your budget to achieve all that.

@money254hq

4 Things to Include in Your Budget Do you ever find yourself longing for financial control? The ability to balance your income and expense... 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.