Car Prices to Shoot Up, Infrastructure Bond Profit Estimates, Non-NATO Ally Status

Hello and welcome to the Money Weekly Newsletter, where we cover the warning about a potential increase in car prices and break down how much you could earn if you invest in the reopened 19-year infrastructure bond.

But first, a word from our sponsoring partner, Umba Microfinance Bank.

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Kenyans could soon face higher car prices if the new Certificate of Origin requirement for imports is implemented.

Earlier this week, the Car Importers Association of Kenya (CIAK) cautioned that vehicle prices are likely to rise following a Kenya Revenue Authority (KRA) directive requiring importers to obtain a Certificate of Origin for every import.

According to CIAK, the new requirement will cost importers Ksh28,000 per vehicle. Based on 2024 data showing 72,486 imported units, importers would collectively spend about Ksh2 billion annually on these certificates — costs that are expected to be passed on to consumers.

“In 2024, between January and December, Kenya imported 72,486 units, each required to pay Ksh28,000 for the certificate if the rule is implemented. This would result in the outflow of over Ksh2.029 billion, which should not be spent when existing documents already verify a vehicle’s origin. No unit can be cleared at border points without such documents,” CIAK stated.

CIAK Chairman Peter Otieno argued that the requirement is unnecessary, given that existing port documents already show a vehicle’s origin. Most cars in Kenya are imported from Japan.

“In our opinion, the country of origin should be indicated on the logbook and inspection certificates. We should not spend such amounts when the necessary documents already exist,” he said.

In June, KRA announced that all imports must have a Certificate of Origin, noting in its public notice that the directive is mandatory.

Read more about the Certificate of Origin here.

Here is a quick recap of the top money news for the week:

Potential Tiff Over Kenya’s Non-NATO Ally Status

• Earlier this week, U.S. Senator Jim Risch initiated a review of Kenya’s non-NATO ally status, citing concerns over the country’s growing ties with China and Russia. Kenya was granted the designation during President William Ruto’s state visit to the U.S. in 2024.

• A day later, President Ruto defended his alliances with China and other nations, stating that his administration’s partnerships are guided by economic interests. Following his recent visit to China, Kenya secured an agreement that includes the removal of tariffs on all its agricultural exports, including tea, coffee, and avocados. “We are progressing our conversations with India, but we haven’t quite had a breakthrough yet. We are in a very good place with Turkey and Canada,” he said.

Catch Up on More News

WEEKLY MONEY TIPS

MONEY254 #MONEYTOK

Court Ruling Sets Precedent on Process of Firing Employees Who Are Underperforming

A recent court ruling says no — employers must give 2–3 months for improvement, with appraisals and a clear plan. Verbal warnings or forced leave don’t count.

In the case, a supermarket sacked a worker without proof of support. The judge called it unfair, awarded Ksh554,000, and ruled employers can’t withhold terminal dues to recover debts without written consent.

@money254hq

𝐂𝐨𝐮𝐫𝐭 𝐑𝐮𝐥𝐢𝐧𝐠 𝐒𝐞𝐭𝐬 𝐏𝐫𝐞𝐜𝐞𝐝𝐞𝐧𝐭 𝐨𝐧 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 𝐨𝐟 𝐅𝐢𝐫𝐢𝐧𝐠 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬 𝐖𝐡𝐨 𝐀𝐫𝐞 𝐔𝐧𝐝𝐞𝐫𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐢𝐧𝐠 A recent court ruling says no — employers must give 2–3... See more

That’s a wrap for this week’s Money Weekly!

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