KRA Asks All Taxpayers to Confirm Phone Number Linked to iTax; M𝐨𝐧𝐞𝐲 N𝐞𝐰𝐬 R𝐨𝐮𝐧𝐝 U𝐩

‍Tuesday, 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫 12, 𝟐𝟎𝟐𝟒

In today’s money news, the Kenya Revenue Authority (KRA) has issued a directive for all taxpayers to verify their mobile phone numbers in the iTax system as part of an ongoing data clean-up exercise. This initiative involves updating Personal Identification Number (PIN) registration details on the iTax system, where taxpayers will validate their contact information through a One Time Password (OTP) sent to their registered mobile number. If a phone number needs updating, taxpayers can update it in the system to receive the OTP and access their account. KRA urges taxpayers to ensure all registration details, including addresses, business locations, and partnerships, are up-to-date on iTax.

The Business Daily reports that Kenya Railways has defaulted on a Sh167.5 billion loan from China for constructing the Standard Gauge Railway (SGR), potentially incurring a Sh1.6 billion penalty. The SGR debt now comprises 62% of state agency loans, with taxpayers covering costs due to insufficient revenue from SGR operations.

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On top of that, a proposed amendment to Kenya's Public Procurement and Asset Disposal Act of 2015 seeks to reserve all government tenders valued at less than Sh1 billion exclusively for local firms. Tabled in Parliament and sponsored by Finance and Planning Committee Chair Kuria Kimani, this amendment aims to give Kenyan companies a competitive edge against foreign firms, especially well-capitalised ones, such as Chinese contractors, who often secure national and county-level tenders. The amendment, if passed, will also require foreign firms vying for contracts exceeding Sh1 billion to collaborate with local companies on at least 30% of the project’s value as reported by Nation.

KenGen has fined Kenya Power Ksh710.1 million for delayed electricity payments for the year ending June 2024, a 94.7% increase from the previous year’s Ksh364.7 million, Business Daily reports. Under their agreement, penalties apply if invoices remain unpaid 40 days after issuance. This significant penalty growth comes despite Kenya Power’s Sh30.08 billion net profit for the year, which allowed the utility to resume dividends after a six-year break.

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According to Capital Business, the Kenyan government has announced a Ksh9.6 billion plan to build five sports stadiums in Kisumu, Nakuru, Mombasa, Garissa, and Eldoret over the next 24 months. This collaborative initiative with county governments, Sport Kenya, private investors, and local communities aims to enhance both grassroots and professional sports infrastructure. Each stadium will feature energy-efficient and accessible facilities, supporting a range of sports like football, athletics, and rugby, with individual budgets allocated, including Ksh2 billion for Kisumu and Ksh2.4 billion for Mombasa.

The latest consolidated financial report for Kenya's state corporations shows the Central Bank of Kenya (CBK) retaining its position as the nation’s wealthiest parastatal with assets valued at Ksh1.96 trillion as of June 2024, an increase from Ksh1.78 trillion in the previous year as reported by The Standard. Following CBK is the Kenya Airports Authority with Sh1.06 trillion in assets, while the Kenya National Highways Authority (KeNHA) saw growth to Ksh807.998 billion. In contrast, the Kenya Railways Corporation experienced a drop from Ksh983.29 billion to Ksh788.784 billion. Total assets across state entities rose by 8% to Ksh9.807 trillion, attributed to gains in property, equipment, and investments. This report emerges as the government aims to divest from underperforming parastatals, a plan facing delays due to a recent High Court ruling challenging the Privatisation Act.

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