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Living within your means and achieving long-term financial goals requires effective budgeting. One popular budgeting strategy that provides a clear structure is the 50/10/20/20:
50%-Living expenses.
10%-church/charity/donation.
20%-discretionary spending (clothes, eating out, trips and tours e.t.c.)
20%-debt repayment/savings.

Do you🫵 think Safaricom will still be operating in the magnitude it is right now, 7 years from now?🤔

It is critical to understand your income before making any financial decisions. It is critical to understand your take-home pay after taxes and withholding. Without this information, all other planning efforts may be futile. Take the time to calculate and determine your actual income so you can make smart budgeting, saving, and spending decisions. This first phase lays the groundwork for good financial management by providing you with a realistic view of your financial resources. When it comes to your income, remember that knowledge is power, so don't miss this critical component of financial planning.

In a changing mobile services sector, Safaricom's M-Pesa has emerged as a dominating player, accounting for 41.5 percent of the company's mobile service revenue. This represents a significant gain above the previous year's share of 39.9 percent. M-Pesa's rise comes as earnings from phone calls and text messaging are under threat from popular programs such as WhatsApp.
Safaricom's mobile service revenue increased by 4.6 percent in the fiscal year ending March 2023, hitting Sh282.23 billion. M-Pesa provided Sh117.19 billion alone to this sum. This achievement represents M-Pesa's largest revenue share in Safaricom's history.
Meanwhile, customers' increased choice for internet-based communication alternatives is reflected in the diminishing share of phone and message revenue. Voice and messaging accounted for 47.2 percent of mobile service revenue five years ago, while M-Pesa contributed for 31.2 percent. At the time, voice revenue peaked at Sh95.94 billion.
During the release of the company's financial results, Dilip Pal, Safaricom's chief finance officer, noted the continuous reduction in voice and messaging income. This, he said, was due to increased competition from emerging technology.
The dynamic environment of mobile services reflects consumers' changing requirements and preferences. M-Pesa has successfully positioned itself as a crucial revenue generator for Safaricom as internet-based calls and messaging apps gain popularity. The company's ability to adapt to these developments and profit on the rise of M-Pesa displays its resilience and commitment to satisfying client demands in an ever-changing digital world.

It's preferable to start financial planning as soon as possible, but it's never too late to set financial goals for your family's freedom and security.

The US Securities and Exchange Commission (SEC) made news in early May when it awarded a whopping Sh36 billion to a whistleblower whose evidence led to a successful enforcement action. This is more than quadruple the Sh13 billion distributed in 2020. Who would have guessed that "ratting" could be such a profitable business? In instance, the maximum compensation from our own capital markets body is only Sh5 million. It's a pittance. If we actually want to develop a robust culture of whistleblowing, we need to considerably improve that figure.
Let us recall Uncle Bernie's deception for a moment. Harry Markopolos, the famed whistleblower who disclosed his scheme, was ignored for years. Politicians, regulators, and press all ignored him when he warned them about Madoff's Sh5 trillion Ponzi scheme. Markopolos was vindicated when the swindle eventually unfolded, leaving countless organizations, investment funds, and pensioners distraught. He rose to the status of hero. However, at the time, he jeopardized his career and reputation by taking on a powerful adversary. Why would somebody put themselves through such agony for a mere Sh5 million?
Even claiming the award entails dangers, as many whistleblowers are never genuinely accepted back into the workforce. The world is not patient with ethical activism. This is exactly why the bounty should be increased. Let's take a step back for a second. How do I feel about snitches, snakes, and tippers? They, in my opinion, provide us with a vital service. "Snitching" can help corporations hold themselves accountable for ethical issues ranging from workplace issues to questionable business operations.
Otherwise, we would be left with onerous regulations addressing these issues, which no one wants. The term "ratting-out" should not be interpreted negatively. In truth, everyone participates in some form or another. You are essentially functioning as a snitch every time you report information on social media networks like Facebook or Twitter.
It is critical to recognize that snitching is not for the faint of heart. Speaking out against a well-known corporation is a difficult and time-consuming decision. According to the Capital Markets (Whistleblower) Regulations of 2022, information disclosed by whistleblowers must meet specific criteria, such as being new, authentic, relevant, complete, and timely.
In essence, you must be as trustworthy as a Communist East German cop would want you on their team. You must have strong investigative abilities, the capacity to start conversations that provoke reactions, and a talent for detailed research and knowledge retention. Perhaps a little envy is involved as well.

Non-disclosure agreements, thankfully, do not apply in this case.

To conclusion, it is critical to increase the compensation for whistleblowers. Furthermore, superfluous obstacles, such as forcing whistleblowers to justify their reward, should be removed. The decision-making process behind the award, which is currently cloaked in mystery, should be made public.

Snitching pays dividends in the long run. So, if you have a smell of something fishy, don't be afraid to be the rat.

These are the core pillars of financial planning services, allowing individuals and companies to effectively navigate personal and financial well-being. By utilizing these services, individuals can construct comprehensive financial strategies that are linked with their own goals, so improving their financial security and prosperity.

If proposed changes to the law are adopted, the Kenya Revenue Authority (KRA) may soon have the right to oblige certain enterprises, notably those with a high risk of under-declaring taxes, to make daily payments. The Finance Bill 2023 proposes to provide the KRA the authority to demand daily remittance of excise duty on enterprises that have been identified as misrepresenting sales through self-declaration.
The move comes after a successful pilot program on around 17 betting companies last year, which resulted in a large rise in tax collections. In a fresh effort to tackle tax evasion, Treasury Secretary Njuguna Ndung'u has proposed revisions to the Excise Duty Act, aiming to ensure daily revenue payment from all betting and gaming enterprises.
The proposed modifications also provide the Commissioner for Domestic Taxes the authority to incorporate additional sectors via a Gazette notice. Except for imported commodities, which are taxed upon importation, excise duty on goods and services is currently paid on the 20th of the following month.
If approved, the Commissioner has the authority to demand taxpayers in any sector to repay excise duty within 24 hours of the close of daily transactions. The KRA intends to integrate its tax system with specific enterprises in order to provide real-time access to transactions and eliminate reliance on self-declared sales numbers.
With suspicions of undeclared sales of airtime, internet services, and mobile money transactions, mobile network operators have been highlighted as potential targets for daily tax payments. However, instituting daily payments would necessitate the development of supporting technologies by both the KRA and the targeted firms.
Experts underline the importance of technology infrastructure in order to efficiently enable everyday tax payments. Integration of the KRA's i-Tax system with the systems of businesses such as telecommunications carriers would ensure that taxes are transferred as soon as transactions occur. By reducing opportunities for tax evasion, the proposed policy reforms aim to improve tax compliance and revenue collection. While the feasibility of daily payments depends on technological capabilities, the KRA and the government are committed to employing innovative solutions to address tax challenges and ensure a fair and efficient tax system.

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President William Ruto's administration in Kenya has proposed eliminating three taxes on aircraft and its parts in order to encourage economic growth and support the aviation industry. This measure intends to lower the cost of helicopters and planes for wealthy individuals and politicians. It does, however, come at a time when the middle class is facing increasing gasoline and salary taxes in order to fund the country's budget. Let's get into the specifics of this tax overhaul and its potential consequences.
Under the proposed Finance Bill of 2023, the government intends to exempt importers of aircraft, particularly helicopters, from the 16 percent Value Added Tax (VAT). Additionally, the 3.5 percent import declaration fee (IDF) and the two percent Railway Development Levy (RDL) will be scrapped. These tax cuts are primarily aimed at buyers of aircraft not exceeding 2,000 kilograms and helicopters weighing less than two tones.
The repeal of these taxes is expected to deliver a considerable boost to the aviation industry, which had previously decried their reinstatement. Choppers are popular not only with airlines, but also with affluent individuals and politicians, who frequently use them for a variety of purposes, including election campaigns. These individuals currently pay between Sh150,000 and Sh400,000 per hour for helicopter charters.
While tax cuts are hailed by the wealthy, additional charges levied to fund various social services such as pensions, healthcare, and housing may fall disproportionately on the middle class. Thousands of middle-class workers are concerned that their incomes will be further strained as a result of this.
Prior to July 20, 2021, some types of helicopters, airplanes, aircraft gear, and parts were tax-free. However, the Finance Act of 2020 imposed VAT on aircraft imports weighing less than 2,000 kilos, with the goal of raising an additional Sh38.9 billion from rich individuals and enterprises. The existing exception solely covers airplane parts like propellers and non-powered aircraft.
Industry players, including the Kenya Association of Air Operators, have praised the tax cuts, considering them a crucial measure to enhance competitiveness in the air transport sector. The excessive taxation of aircraft, spare parts, and fuel has made the industry uncompetitive and unsustainable. Lobbying efforts have been ongoing to urge the government to review the tax regime and provide relief to industry players, aligning Kenya with its regional and global counterparts.
The reduction in the cost of importing spare parts and light aircraft is seen as a significant advantage for Kenya. Lower training costs can promote tourism and sports aviation, fostering growth in the general aviation sector and creating employment opportunities.
The proposed tax cuts on aircraft imports in Kenya have generated both excitement and concern. While wealthy individuals and politicians stand to benefit from more affordable helicopters and planes, the middle class faces the prospect of increased fuel and salary taxes. The aviation industry anticipates significant growth and increased competitiveness, thanks to the elimination of these burdensome levies. However, the long-term impact on the economy and social equality remains a subject of debate.

Within financial management, estate planning comprises organizing and managing assets to ensure the smooth transfer of wealth to designated beneficiaries. Investment services provide professional advice and portfolio management to maximize returns while taking risk tolerance and financial goals into account. Insurance services offer customized solutions to safeguard against unforeseen disasters and reduce potential financial losses.

The Kenya Revenue Authority (KRA) has announced the suspension of several tax breaks, which has caused significant misunderstanding among taxpayers. The directive, which went into force on February 28, sought to improve payment processes for tax refunds, exemptions, waivers, and abandonments. However, the KRA's subsequent pronouncements did little to address the concerns raised by the suspension's implementation. The KRA stressed that the suspension solely applies to waivers and reliefs granted at the discretion of the Treasury Cabinet secretary, leaving tax breaks provided by law unaffected. Personal exemptions, such as the Sh2,400 contained in the personal income tax rate, as well as other exemptions stipulated in tax regulations, will remain in effect. The KRA highlighted that eliminating reliefs necessitates a legal revision.
Taxpayers who have already requested exemptions or refunds will experience delays because the KRA will not process their requests until the audit is completed. This includes firms and individuals who are awaiting tax returns, which are estimated to total around Sh21 billion in the current fiscal year. The ban also has an influence on tax refunds, with VAT refunds being the most significant component. VAT refund requests are typically made in the case of zero-rated goods and services, such as basic food supplies. This judgment would definitely have an impact on the financial flow of businesses that owe the KRA considerable sums.
Tax exemptions and waivers have long been a source of contention. While tax breaks are meant to encourage investment and job growth, they have resulted in significant revenue losses for the government. Tax expenditures reached Sh316 billion in the previous fiscal year, a considerable rise over the previous year. Although the Treasury has taken steps to prevent unneeded waivers, some gaps have been abused, resulting in abuses. The ongoing assessment of tax breaks seeks to match tax expenditure with international best practices while also improving the impact on economic growth. The KRA and the government are attempting to strike a balance between aiding businesses and preventing tax breaks from being abused.
Nevertheless, Kenyan taxpayers and businesses must manage the temporary suspension of tax breaks while waiting for the audit process to be completed. Clarity from the KRA and the government will be critical in addressing the issues and creating a fair and effective tax system for all stakeholders.

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The International Monetary Fund (IMF) chief, Kristalina Georgieva, recently visited Kenya and met with top government officials, including President William Ruto. Georgieva noted in an interview that Kenya has been an observer to global economic crises. The conversation focused on assisting Kenya in overcoming external shocks, strengthening its fiscal position, managing currency rate pressures, and exploring development potential. Georgieva also emphasized the need of leveraging trade to strengthen economic resilience and praised Kenya's commitment to education and skill development.
Georgieva praised Kenya's improvement and thriving business environment since her last visit five years ago. The discussion with President Ruto and Cabinet members focused on reducing the effects of unpredictable events. She emphasized how the COVID-19 pandemic and Ukraine's crisis have boosted inflation and interest rates, harming countries such as Kenya. Kenya faced finance constraints as international market access became more constrained. The IMF, on the other hand, has a robust financing program in place, which it intends to expand by introducing a new long-term concession financing mechanism to boost resilience and sustainability.
Georgieva expressed her support for Kenya's fiscal prudence in these trying times. She praised the government's resolute actions in guaranteeing fiscal strength in the face of unavailable international markets. The conversation also highlighted the significance of managing currency rate pressures induced by large dollar and euro loans. The IMF advised allowing the currency rate to fluctuate in order to retain reserves for imports and debt servicing. Finally, Georgieva emphasized Kenya's considerable growth potential, mentioning successful inventions such as M-Pesa. She endorsed both domestic and foreign investment to help Kenya realize its full economic potential.
Georgieva stated that Africa, especially Kenya, has not completely reaped the benefits of trade, both within and outside the continent. Many African exports continue to rely mainly on commodities, limiting economic diversification. The interview focused on the African Continental Free Trade Area (AfCFTA) agreement, which was signed by nearly all African countries and aims to promote transcontinental trade. The implementation of AfCFTA has the potential to expand intercontinental trade by 53% by eliminating tariff and non-tariff barriers. Georgieva underlined the importance of hastening the agreement's implementation in order for Africa to fully reap the benefits of trade.
The interview also addressed the issues raised by sovereign debt. Georgieva acknowledged the shifting environment of creditors as well as the complexity of debt restructuring. The IMF has been actively working on a uniform framework, including the suspension of debt service for low-income nations. However, the IMF intends to broaden eligibility to include countries other than those classified as low-income, assuring timely and predictable aid. The recently held global sovereign debt forum, which included old and new creditors, private sector leaders, and debtor countries, demonstrated progress and cordial conversations.
Georgieva spoke about the global economic outlook, emphasizing the combination of slowing growth and persistent inflation. This year, global growth is forecast to be 2.8 percent, with Africa growing at 3.6 percent. Inflation is expected to remain over the central bank's objective until 2025. Given these problems, Georgieva encouraged countries to prepare for slower growth, manage inflation, and focus on structural changes to boost productivity. She praised Kenya's dedication to education, highlighting the need of skills in a fast changing world.

Wealth management is a subset of financial management that entails methods and consulting services for optimizing the allocation and growth of personal or organizational assets. Loans and debt services help people manage and optimize their financial commitments, including loan agreements and repayment plans. Budgeting services are concerned with creating comprehensive budgets that allow for effective financial planning and resource allocation.

In a shocking revelation, a Nigerian company, RemX Limited, at the center of a multi-billion money laundering investigation last year, has been exposed for using fake documents to transfer millions of dollars from Kenyan banks to Citibank in the United States. The Hong Kong-based firm, Lae Technologies, has filed a case in the High Court, providing evidence of RemX's deceptive practices, which allowed them to move large sums of money undetected for four years. The case sheds light on the elaborate tactics employed by RemX to dupe compliance teams and regulators, leading to concerns of card fraud and money laundering.
Text messages from RemX director Nehikhare Eghosasere, submitted as evidence, unveil the company's method of evading scrutiny by Citibank's compliance team. By forging documents and ensuring that the beneficiary name in the SWIFT instruction matched the sender's name, RemX aimed to avoid arousing suspicion. The company operated across multiple countries, including Kenya, to present the transfers as "Same Company Funds Transfer." RemX's registered office is located in Lagos, Nigeria, and is owned by Eghosasere and Demuren Olufemi Olukunmi.
Lae Technologies is seeking to freeze RemX's accounts and those of its affiliates until a lawsuit demanding an $88 million payment for software sold to the Nigerians is resolved. While the purpose of the transactions remains unclear, the Assets Recovery Agency (ARA) raised concerns last year about RemX's involvement in moving illicit funds, possibly proceeds of crime. The case not only exposes RemX's fraudulent activities but also raises questions about the compliance measures of Kenyan banks, including Equity Bank and UBA, as they failed to detect the use of fake agreements, violating Know Your Customer (KYC) requirements.
Citibank, acting as the correspondent bank, was unwittingly involved in the money transfers. However, Eghosasere acknowledged that Citibank's stringent anti-money laundering rules presented a risk to their operations, while local banks did not pose the same level of scrutiny. The documents also reveal that RemX had considered making Kenya its payment settlement hub, explaining the large amounts of foreign currency wired during the period. The Central Bank of Kenya (CBK) and the Financial Reporting Centre (FRC) have consistently maintained that RemX's transactions were illegal, as the company was not authorized to process payments in Kenya.
The exposure of RemX Limited's use of fake documents in multi-million dollar wire transfers highlights the need for robust compliance measures and increased vigilance within the banking sector. The ongoing case serves as a reminder of the importance of combating money laundering and illicit financial activities. As the investigation unfolds, it is crucial for authorities to hold accountable both the fraudulent company and any financial institutions that failed to detect the deceptive practices. By addressing these issues, Kenya can enhance its reputation as a secure and reliable financial hub, safeguarding its economy and protecting against illicit financial flows

Financial planning services cover a wide range of specialized areas that help individuals and businesses manage their finances effectively. There are numerous types of services available for anyone interested in financial planning.

The Kenya Revenue Authority (KRA) is working to make electronic tax bills mandatory for corporate companies. Companies that fail to furnish electronic tax invoices for payments made to suppliers will risk fines beginning in June. Firms who do not have electronic tax invoices will be unable to obtain input tax and VAT refunds, resulting in greater tax liabilities, according to the KRA.
The use of electronic tax invoices is part of the KRA's efforts to improve VAT compliance and bridge the gap between corporates and small suppliers who may not have access to an electronic tax invoice management system. The KRA has launched an internet-enabled tax register known as e-TIMS (electronic Tax Invoice Management System), which allows for real-time transmission of sales data for businesses registered with the KRA.
All VAT-registered taxpayers will be required, from June 1, 2023, to accept only electronic tax invoices from other registered taxpayers in order to claim input tax and process refunds. According to the Finance Bill, 2023, failure to comply may result in a fine of Sh1 million or ten times the tax payable. The goal of these reforms is to encourage compliance with necessary invoices while also encouraging revenue growth by addressing tax evasion.
While the shift to electronic tax invoices is intended to streamline operations and promote accountability, some experts are concerned about the impact on small firms that operate on the side. Non-resident digital service providers, on the other hand, are excluded from this obligation and must instead produce invoices indicating the amount of the provision and the tax levied.
The KRA emphasizes that non-compliant VAT-registered taxpayers will not be awarded Tax Compliance certifications until the VAT (Electronic Tax Invoice) Regulations 2020 are met. These new measures are an important step forward in Kenya's continuous efforts to improve tax compliance and revenue collection.

Protection refers to the steps people take to safeguard themselves against unforeseen events such as sickness or accidents, as well as to preserve riches. Life and health insurance, as well as estate and retirement planning, are all forms of protection.

Kenya is set to host the Africa Energy Forum in June 2023, bringing together renewable energy players, banks, and regulators from around the world. The forum aims to accelerate the generation of wind power as a crucial component of clean energy and address challenges related to financing and regulations in order to boost the use of wind energy across the continent. With Africa's vast potential for wind energy production, this gathering will foster partnerships among international financial institutions, governments, and the private sector to expand electricity access to homes and businesses.
Despite Africa's immense potential, only a mere one percent of the world's wind farms currently exist on the continent, mainly due to funding constraints. The Africa Energy Forum will provide a platform for engaging with public and private sector stakeholders to discuss the opportunities that wind energy can offer. Wangari Muchiri, the Africa WindPower Director at the Global Wind Energy Council (GWEC), expressed enthusiasm for the event, emphasizing the importance of tapping into Africa's wind power potential.
Kenya's role as the host country for this significant event is well justified. It is home to Africa's largest wind power plant, the Lake Turkana Wind Power Project, which generates 310 megawatts of clean energy. Additionally, Kenya has three other wind power plants, solidifying its position as a leader in the continent's wind energy sector.
The Africa Energy Forum is expected to bring together approximately 2,500 participants from private and government agencies. The forum will provide a conducive environment for forging deals and partnerships aimed at financing wind power projects throughout Africa. Moreover, the event will actively target young entrepreneurs and higher learning institutions, recognizing the potential of Africa's youthful population to drive the uptake of green energy.
The Africa Energy Forum in Kenya marks an important milestone in driving the growth of wind power generation across the continent. By convening renewable energy players, financial institutions, regulators, and other stakeholders, the forum seeks to overcome barriers related to funding and regulations. With Kenya's prominent position in the wind energy sector, it serves as an ideal host for this gathering. As Africa harnesses its wind power potential, the forum will unlock opportunities for collaboration and pave the way for a cleaner, more sustainable energy future

Investing can be tough for individuals who are inexperienced with it; it is beneficial to devote some time to learning about it by reading and studying. If you don't have the time, you can benefit from hiring an expert to assist you with your investment.

Investing is acquiring assets, most often stocks and bonds, in order to gain a return on the money invested. Investing seeks to grow an individual's wealth above and beyond the amount invested. Investing is risky since not all assets appreciate and some may lose money.

It is best to keep in mind that money sitting in a savings account is a waste since with time, inflation reduces its purchasing power. Instead, money that isn't needed in an emergency or spending account should be invested in something that will help it retain or increase in value.

Savings are the funds that remain after expenditure. Everyone should strive to save money for significant expenditures or emergencies. However, this requires avoiding spending all of your money, which might be challenging. Regardless of the difficulties, everyone should endeavor to have enough savings to cover any variations in income and spending—between three and twelve months of costs.

According to IBM and the National Retail Federation research, half of US consumers are willing to pay more for sustainable products, and 62% are willing to change their shopping habits to reduce their environmental impact. According to reports, 85% of people worldwide have changed their purchasing habits to become more sustainable in the last five years. Businesses are responding to this consumer demand by focusing their ESG processes. According to a 2022 survey, nearly 80% of retailers who have invested in improving sustainability believe their efforts have resulted in increased customer loyalty. However, according to a McKinsey survey, the business results for the bottom line may not be quite as promising just yet. Only 22% of respondents in their survey reported achieving modest or significant value from their sustainability efforts in the previous five years. However, the survey found that businesses are optimistic about the future. In the next five years, 40% of respondents expect their efforts to produce modest or significant value. The circular economy is another business buzzword associated with ESG initiatives. Environmental activists refer to the current state of the world as a linear economy, in which businesses take materials from the earth and customers eventually discard them as waste.
A circular economy, on the other hand, focuses on reusing materials and products for as long as possible. According to the World Economic Forum, businesses investing in reusing and recycling could save $1 trillion per year. Teemill, a UK-based fashion company, is one example of a circular economy business. The company provides B2B print-on-demand services for t-shirts while adhering to distinctly sustainable business practices. Any business owner can access the Teemill website, design t-shirts, and set up a store. When a customer orders a shirt, Teemill prints it and dropsships it to the customer. Every tee has a QR code on the tag that allows customers to return the shirt to Teemill. The organic material from the shirt is then recovered and used to spin new yarn by the company.

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