No Degree, No Agro Shop Business

A bill before parliament proposes drastic changes in how players in the agriculture sector operate including who can sell farm inputs. Plus, the impact of high interest rates, NEMA's ban on plastic garbage bags and Treasury must raise Ksh1.5 trillion in 3 months!

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

This week, there is a bill in Parliament seeking to require agricultural professionals - including sellers of farm inputs - to be registered and licensed.

Meanwhile, the National Treasury is under pressure to raise Ksh1.53 trillion in the remaining three months to June 2024, to fully finance the 2023/24 budget.

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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What happened this week

🌾 Plans to Regulate Players in Agricultural Sector 

You will be required to have a degree, diploma or certificate in an agriculture-related field to engage in the sale of farm inputs such as fertilisers and feeds, if a proposed law is adopted. 

Agricultural professionals will be required to get a licence if the Agricultural Professionals Registration and Licensing Bill, 2024, is passed, in order to practise as agricultural professionals in the country.

  • Agricultural Professional: anyone who holds a degree, diploma, or certificate in an agricultural specialty from a recognised institution.

  • Agricultural Specialties: crop production, horticulture, plant breeding, seed technology, agronomy, botany, crop science, food science, agricultural economics, agribusiness, floriculture, biotechnology, soil & water engineering, and agroforestry.

  • Private Practice: Agricultural activity where one is due to receive the fees, charges, and/or profits in their individual venture or in partnership. Being employed by the government, a state corporation, or private institution is not considered private practice. Read More.

The bill makes it illegal to: 

  • Practise as an agricultural professional without a licence.

  • Engage in agricultural private practice without a licence. 

  • Manage or dispense agricultural inputs without a licence. 

Institutional requirement: institutions are required to only employ agricultural professionals who are registered and licensed by the Agricultural Professional Registration and Licensing Board. Read More.

Renew of practising certificate: The practising certificate will be renewed annually and will be valid from the day of award to the last day of December of the same year. An application for renewal must be made at least 30 days before the end of the validity period. 

Annual Fee: There will be a fee charged annually for this licence that is yet to be determined. Read More

In Just 3 Months, Treasury Must Raise Ksh1.5 Trillion

The National Treasury is due to raise Ksh1.58 trillion in the three months ending June, 2024, to fully finance the Ksh4.28 trillion budget for the fiscal year 2023/24.

  • Amount Collected: In the nine months to March 2024, the exchequer had raised Ksh2.7 trillion. This leaves 36.9% of the target (Ksh1.58 trillion), to be raised in just three months.

  • Making up For the Deficit: The exchequer is targeting raising Ksh960.7 billion from tax revenues and Ksh590.8 billion from domestic and external borrowing. Read More.

😟 Impact of High Interest Rates

Credit growth to the private sector is expected to slow due to the prevailing high lending rates. 

A survey conducted by the Central Bank of Kenya (CBK), which targeted senior officers, including chief executives of 354 private sector firms, shows:

  • 62% of respondents expect slower private sector credit growth and tight credit underwriting.

  • 70% of the respondents expect support to private sector credit growth due to lower inflation, better economic sentiments, favourable foreign exchange environment and favourable weather conditions.

  • 82% of the respondents expect high cost of credit due to high cost of living, high interest rate and a possible increase in the same. Read More.

🚮 Nema Directive to Impact Cost of Garbage Collection

The National Environment Management Authority (Nema) has issued a directive banning the use of plastic bags for the collection of organic waste. The directive will be effective after 90 days from the announcement date, April 8.

Impact: Garbage collectors will now be forced to use biodegradable garbage bags, which are more expensive than plastic ones. This cost will likely be transferred to the consumer. Read More.

⚖️ Digital Lenders’ Plea to MPs 

Digital lenders are asking Parliament to repeal the 20% excise duty on loans. Here are some of their arguments against the excise tax: 

  • That the tax increases the cost of credit rendering some borrowers at the bottom of the economic pyramid incapable of accessing loan facilities.

  • That it makes it difficult for digital lenders to compete against digital lending platforms owned by commercial banks since banks are only charged excise tax on fees, not interest. Read More.

  • That it adds strain to the lender's operating capital as they have to remit the duty within the day of processing a loan, which also exposes them to more risk in the event of a loan default.

Want more details? Check our full weekly update here:


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.


Starting a Side Hustle

In today's #MoneyTok, we're delving into the world of side hustles and discussing three crucial things you need to know before starting one. Whether you're considering a side gig for extra income or exploring entrepreneurial opportunities, these insights will set you up for success. Watch Video 


3 Things You Need to Know Before Starting a Side Hustle. #Money254 #Money #Sidehustle #sidehustleforbeginners #Moneytok #financetiktok #Fyp

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

Eric and the Money254 editorial team.

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