Greetings and welcome to the Twenty-First Money Weekly Roundup of 2024! 

This week, The Kenya Revenue Authority (KRA) has announced that Housing Levy and SHIF contributions will no longer be subject to PAYE tax, starting December 2024. This adjustment, under the Finance Act 2023, offers a timely income boost for workers, especially those with higher earnings.

On the other hand, the government is launching affordable mortgages for rural homes, enabling workers in village areas to access loans of up to Ksh10 million at favorable interest rates.

As always, we’ve included some of our favourite personal finance articles in our Finance Tips section below.

Let’s dive in.

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NEWS RECAP

What happened this week

🌟 Tax Relief on Housing Levy and SHIF Contribution

Effective December 2024, the Kenya Revenue Authority (KRA) will exempt Housing Levy and SHIF contributions from PAYE tax. This adjustment, stemming from the Finance Act 2023, aims to ease financial burdens on employees amid rising living costs, offering a modest income boost for workers, especially higher earners.

💰 Unclaimed Financial Assets on the Rise

Kenya’s unclaimed assets hit Ksh3.8 billion in cash, 407 million shares, and Ksh3 billion in mobile money deposits by June 2024. Safaricom holds 96.3% of dormant mobile money, with Airtel and Telkom managing smaller shares. Only 6% of assets have been claimed, hindered by complex processes and tracing challenges. The UFAA targets Ksh5 billion in new collections next year.

🏘️ Housing Levy to Fund Affordable Homes

The government plans to spend Ksh500 billion from the Housing Levy over 10 years to build 363,860 affordable homes and supporting infrastructure. Critics question the levy’s burden and execution, with only Ksh1 billion disbursed out of Ksh64 billion collected last year for rural housing loans.

🛑 KRA Dismisses 25 Staff Over Corruption

KRA’s crackdown on corruption led to 25 dismissals in Q1 2024-25, recovering Ksh549 million in illicit wealth. Enhanced anti-corruption measures include lifestyle audits, anonymous reporting tools, and informant rewards, aligning with President Ruto’s push to address revenue leaks costing up to Ksh400 billion annually.

⚡ Electricity Costs Increase

Epra raised the forex fluctuation charge on electricity to Ksh1.014 per unit, offset by a reduced fuel cost charge. Users consuming over 100 units will see a slight increase, with experts highlighting inadequate infrastructure for cheaper renewables as a persistent challenge.

📉 Shift Away from Cards to Mobile Money

Debit and credit card usage in Kenya has fallen to a six-year low as consumers prefer mobile money and digital wallets for convenience. This trend urges financial institutions to innovate to stay competitive in the evolving payment landscape.

🔋 Power Outages Highlight Grid Vulnerabilities

Three power blackouts this week, caused by issues in Tanzania, spotlight challenges in cross-border electricity trade. Despite the recent launch of a Ksh39.97 billion Kenya-Tanzania power line, experts call for better regional grid resilience and coordination.

📉 CBK Targets Lower Bond Yields

The Central Bank of Kenya aims to cut long-term bond yields to reduce borrowing costs and encourage affordable credit. This aligns with declining interest rates and inflation, supporting economic growth through cheaper domestic financing.

Want more news? Check out and subscribe to our daily news summary news letter here - M𝐨𝐧𝐞𝐲 N𝐞𝐰𝐬 R𝐨𝐮𝐧𝐝Up

MONEY TIPS & TOOLS

This week’s finance tips

Welcome to Money254's Money Tips! Here, we share quick and easy tips that make understanding and managing your money a breeze. We break down the tricky parts of your finances and the financial landscape, making it simple and clear for you. Stay tuned for helpful tips every week.

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

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Tony and the Money254 editorial team.