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Motorists face new vehicle insurance, congestion taxes

The Kenyan government plans to reintroduce taxes on vehicle insurance premiums and implement a congestion levy to fund road infrastructure projects. These measures aim to compensate for declining fuel tax revenues due to the increasing adoption of fuel-efficient and electric vehicles.

• Revenue Diversification: The government seeks alternative taxes as fuel tax revenues drop.
• Policy Implementation Challenges: Public resistance may challenge the successful implementation of these taxes.

?Macadamia export earnings dip 69pc, drive farmers’ nuts

Kenya's shelled macadamia nut export earnings plummeted by 69% to Sh5.8 billion, down from Sh18.7 billion, significantly impacting farmers' livelihoods.

• Shift to Raw Exports: Allowing raw exports increased competition, closing five processors and threatening 30,000 jobs.
• Regional Impact: Murang’a led in macadamia revenue, followed by Meru and Embu, showing regional disparities.

Also read:

Harvest, export breaches blight macadamia outlook:

Kenya is cracking down on illegal macadamia harvesting to protect quality and market reputation, enforcing stricter measures after premature exports surged post-2023 ban lift.

?Deported Ruto ally wins affordable housing deal

Turkish businessman Harun Aydin, deported in 2021 over alleged financial crimes, secured a contract to build 100,000 homes under Kenya’s affordable housing program.

• Political Connections: His ties to President Ruto raise transparency concerns over the tendering process.
• Public Controversy: Public debate over Aydin’s past may undermine trust in the housing initiative.

?I have a Sh3m loan. How do I get out of debt in a year and start investing?

Linet, earning Sh200,000 monthly, aims to clear a Sh3M loan at 18% interest in a year. To achieve this, she must cut expenses, increase income, and prioritize debt repayment.

1. What strategies can help repay a Sh3 million loan within a year?
2. How can budgeting and expense reduction accelerate debt repayment?
3. What additional income sources can support faster loan clearance?

?How Hewatele navigated cash crunch to raise Sh2.8bn

Dr. Bernard Olayo raised Sh2.8 billion to build East Africa’s largest medical oxygen plant, improving regional supply and healthcare access.

• Strategic Vision: Hewatele was founded to address medical oxygen shortages in underserved areas.
• Impact-Driven Growth: The new plant will reduce Kenya’s reliance on imports and enhance healthcare.

?Top banks step up interest rate cuts amid CBK pressure

Kenya's top banks are lowering lending rates following CBK's interest rate cuts to boost economic growth.

• CBR Reductions: The CBK initiated its easing policy in August 2024, progressively lowering the CBR to 11.25% by December 2024.
• Bank Responses: In December 2024, 23 banks reduced their lending rates, while 14 increased them, and one maintained its rates.
• KBA's Position: The Kenya Bankers Association has announced that banks will begin lowering lending rates to ease access to credit and support Kenya’s economic recovery.

More Curated Reads

• Kuscco ex-officials face arrest, asset seizures:A PwC audit exposed Sh12.5 billion Kuscco insolvency, with Sh13.3 billion lost to fraud. Authorities are investigating, and police may prosecute ex-executives.
• Kenyans turn to cheaper schools, houses as budgets tighten: Kenyans are reducing costs by relocating to cheaper housing (26%), switching schools (19%), and opting for budget brands (21%).
• “Taking devolution to the next level” Kenya’s devolution improves governance but faces political and financial challenges, needing better performance tracking and citizen engagement for effectiveness.
• Demand for mini-malls up in Kenya on youth influence: Mini-malls in Kenya are growing due to youth demand for convenience, while developers shift to smaller spaces amid large mall oversupply.
• Kenya’s food import bill drops 12pc to Sh266.4bn: Kenya’s food import bill fell 12.87% to Sh266.4B in 2024 as maize and sugar production improved, cutting maize imports by 54.4% and sugar by 35.5%.

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