Business Snapshot: Top Insights

Before we dive into today's top stories from Business Daily:

Happy Jamhuri Day! 🇰🇪

 MPs dodge Sh1bn car tax after sneaking in new law

Recent legislative changes have exempted Members of Parliament (MPs) from a substantial tax obligation:

• MPs exempted their KSh7.5M car grants from the 30% income tax, avoiding a KSh1B tax bill.
• Lawmakers bypassed a tribunal ruling, showcasing their power to amend tax laws.

— Read the full article here

Creditor gets High Court nod to sell 14 Riverside complex

• The High Court allowed Synergy Industrial Credit to sell 14 Riverside, rejecting I&M Bank's bid to block it.
• Cape Holdings was accused of using administration to evade a Sh5.5B debt to Synergy.

— Read the full article here

Interest rates on long term bonds decline sharply in latest auction

• The 10-year bond yield fell to 14.68%, down from 16.51% in March.
• High demand saw investors offer Sh53.88B for a Sh20B target, with Sh43.7B accepted.

— Read the full article here

World Bank warns Kenya on secret Adani-type deals

• The World Bank warns Kenya against non-transparent PPP deals like the canceled Adani contracts.
• Competitive tendering is key for accountability in Kenya’s PPP projects.

— Read the full article here

Also read; Treasury eyes Sh2.5trn pension, insurance money for PPP projects

Fintech startup Leja says processed Sh259bn MSME transactions in 2024

• Leja processed Sh259 billion in B2B transactions in just three years.
• Over 1.4 million MSMEs, 60% led by women and youth, use Leja for financial solutions.

— Read the full article here

Drop in disposable income cuts VAT collections to 12-year low

• Declining disposable income led to a 1.11% drop in VAT collections, the first in over a decade.
• Income tax revenues now surpass VAT, reflecting a shift in Kenya's tax structure.

— Read the full article here

Why NTSA vehicle registration order has upset dealers

• Dealers blame NTSA inefficiencies for the rise in unregistered vehicles.
• Unregistered cars allegedly leave Mombasa Port illegally for as little as Sh10,000.

— Read the full article here

Why employee engagement key to attraction and retention of talent

• Employee Engagement Enhances Performance: Actively engaged employees are more motivated and willing to contribute to business success, leading to higher customer satisfaction and lower turnover rates.
• Leadership Trust Drives Engagement: Confidence in leadership and a clear organizational vision are crucial for fostering employee engagement, as they instill trust and excitement about the company's direction.

— Read the full article here

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Five More Top Stories

How goes the plan to convert all cars to EVs?

• Kenya's EV transition is slow, with hybrids leading due to cost and infrastructure challenges.
• EVs make up 25% of new UK car sales, but traditional vehicles still dominate. — Read the full article here

Kenya attracts Sh117.8bn in new investments, surpassing target:

• Kenya attracted Sh117.8B in investments, surpassing the Sh100B target by 17.8%.
• Investments created 12,061 jobs, exceeding the 10,000 target and doubling last year's figures. — Read the full article here

CBK has enough room to cut interest rates further - Citi analysts:

• Citi forecasts CBK will cut rates further in 2025, driven by low inflation from stable oil and food prices.
• CBK has reduced the benchmark rate to 11.25% to boost lending and economic growth. — Read the full article here

Enhancing consumer protection digitally:

• Smart devices pose risks like security gaps, privacy issues, and consumer misinformation.
• Kenya's Consumer and Data Protection Acts aim to safeguard users but need better enforcement and awareness. — Read the full article here

Counties in western Kenya lead in climate investment:

• Western Kenya counties lead in green initiatives, with Kakamega at 65.9%, well above the 34.9% national average.
• Men participate more in climate investments (37.7%) than women (32.3%), especially in tree planting. — Read the full article here

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Business Daily