Greetings and welcome to the Nineteenth Money Weekly Roundup of 2024! 

This week, The Communications Authority of Kenya (CA) has announced that starting November 1, 2024, all new mobile phones must be registered with the Kenya Revenue Authority.

On the other hand, the government The government has announced that JSS teachers will need to wait longer for their permanent and pensionable terms, with recruitment now set to begin in January 2025 

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

Let’s dive in.

NEWS RECAP

What happened this week

📱 New Mobile Phone Registration Requirements to Take Effect from Next Week

The Communications Authority of Kenya (CA) has announced that starting November 1, 2024, all new mobile phones—whether manufactured locally or imported—must be registered with the Kenya Revenue Authority (KRA). Devices that fail to comply will risk being disconnected from Kenyan networks.

Details of the New Regulations:

• New mobile phones entering the market on or after November 1st, 2024, must be registered with KRA.

• Existing devices connected to mobile networks before October 31st, 2024, will not be affected by the directive.

• Assemblers, importers, retailers, wholesalers, and mobile network operators must upload the International Mobile Equipment Identity (IMEI) numbers for each device to the KRA portal.

• Retailers and wholesalers can only sell mobile devices that meet tax compliance standards.

Government's Push for Tax Compliance:

This directive aligns with a broader government initiative targeting tax compliance across digital transactions.

• The CA also announced that all paybill and till numbers will be converted into Electronic Tax Registers (ETRs) by December 25, 2024 to curb tax evasion.

• The move will focus on traders relying on mobile money transfer platforms like M-PESA and mobile banking apps

The CA emphasised that these regulations aim to ensure all manufacturers, distributors, and retailers comply with tax laws, promoting transparency and accountability in the mobile phone market. Read More.

📚 JSS Teachers to Wait Until January 2025 for Permanent and Pensionable Employment

The government has announced that Junior Secondary School (JSS) teachers will need to wait longer for their permanent and pensionable terms, with recruitment now set to begin in January 2025.

Budget Constraints Delay Teacher Employment:

• Treasury Cabinet Secretary John Mbadi revealed that the delay in hiring was due to budgetary limitations, but assured that funds would be available in January 2025.

• "There was no money to immediately employ JSS teachers, but there is money to employ them from January; we have the budget," said the CS.

Background:

• In May 2024, JSS teachers staged a 3-week nationwide strike, disrupting learning across the country. The Teachers Service Commission (TSC) initially issued termination letters to the striking teachers but later withdrew them, promising to hire them on permanent and pensionable terms starting July 2024.

• The government had allocated Ksh177 billion for recruiting 46,000 teachers—with 39,000 positions reserved for JSS—but the collapse of the Finance Bill 2024 led to a withdrawal of the funds.

New Hiring Timeline:

• Following protests and threats of another nationwide strike, the government renewed its commitment to hire JSS teachers starting January 2025.

• In September 2024, the TSC advertised 46,000 vacancies, but many teachers faced technical issues while applying for the jobs, further compounding frustrations.

This update reflects the government's latest effort to stabilise the education sector by addressing teacher employment, though the recruitment delay continues to stir uncertainty. Read More.

🏘️ Satellite Towns Outshine Nairobi Suburbs as More Residents Seek Affordable Living

A new Hass Consult report reveals that residents in the Nairobi Metropolitan area are increasingly choosing to live in satellite towns like Juja, Ongata Rongai, and Kitengela. The shift is driven by competitive property and rental prices in these areas compared to Nairobi’s traditionally upmarket suburbs.

Key Housing Market Trends (June – September 2024)

• Juja recorded the highest sales price growth at 3.5%.

• Ongata Rongai and Kiambu Town followed with sales price increases of 1.8% and 1.5%, respectively.

• Kitengela led rental price growth at 6.7%, followed by:

• Ruiru: 2.8%

• Kiambu: 2.3%

• Athi River: 2.0%

Stagnation in Nairobi's Suburbs

Minimal growth or decline in property prices was observed in upscale suburbs:

• Gigiri: -2.0%

• Kitisuru: -1.2%

• Runda: -0.2%

Rental prices remained largely stable, with Gigiri experiencing a 0.8% decline in rental rates. Other areas like Ridgeways, Westlands, and Kileleshwa saw modest increases of 0.7% to 1.3%.

Shift in Demand

• With stagnant property prices and high living costs in the city, many residents are migrating to satellite towns where affordability is more appealing.

• However, sales in Kitengela and Ruaka saw declines of 4.0% and 1.6%, respectively, indicating some market adjustments.

Despite the current trends, the real estate market is expected to recover soon as inflation drops, interest rates fall, and purchasing power improves—potentially balancing demand between Nairobi suburbs and satellite towns. Read More.

🔋 Ruto Backs Ksh.95 Billion Adani Deal

President William Ruto has defended the government’s decision to partner with Adani Group Holdings in a Ksh.95.68 billion energy transmission project, calling it a strategic move to avoid further borrowing. Speaking at the groundbreaking of a 35MW geothermal plant in Menengai, Nakuru County, Ruto emphasised that the deal would fast-track Kenya’s national power grid expansion without burdening taxpayers.

 Details of the Power Deal

• Adani Energy Solutions Limited will develop, finance, and operate transmission lines and substations across Kenya to help reduce power outages.

• The 35MW Menengai power plant, managed by Orpower TwentyTwo, will transmit energy to Nanyuki, Meru, Nyeri, and other counties.

• Ksh.12 billion will be invested by private entities to generate energy, which the government will purchase under a pre-negotiated charge.

• Ruto emphasised that no public funds will be used to finance the deal, avoiding further government borrowing.

Adani's Controversial Role & Energy Expansion Goals

Ruto defended the partnership with the Adani Group, noting that their investment would fast-track national power grid development without adding to the public debt. Energy CS Opiyo Wandayi confirmed the deal’s strategic importance, which aims to curb frequent power outages and enhance industrialization.

"The Adani group is investing Ksh.95 billion of their money in the transmission line. We would have otherwise gone to borrow that money and burden the people of Kenya," Ruto stated.

Leveraging Private Investments to Avoid Debt

Ruto highlighted the significance of Public-Private Partnerships (PPP), stressing that Kenya’s collaboration with Adani and other private investors will provide critical infrastructure while keeping public debt in check.

Want more details? Check our full weekly update here:Govt Orders All New Phone IMEIs to be Connected to KRA Portal for Tax Compliance- Money Weekly News

MONEY TIPS & TOOLS

This week’s finance tips

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MONEY254 #MONEYTOK OF THE WEEK

Black Tax turned into a thriving investment

In today's #MoneyTok, we look into a story of a group of cousins who were able to turn the challenge of black tax into a thriving investment. If you are looking into how to support your family without depleting your savings and how you can go about investing with family, watch this video for inspiration. Watch Video.

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

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Tony and the Money254 editorial team.