MPs Renew Push for Salary Increment That Was Postponed During Anti Finance Bill Protest

In Summary:

• MPs are pushing for the reinstatement of frozen salary increments, citing fairness and economic realities.
• The Treasury raised Ksh48.5B in an oversubscribed bond auction while managing borrowing costs by rejecting costly bids.
• Delays in university placement and funding decisions are causing concern for KCSE 2024 candidates and their families.
• Treasury’s higher tax targets aim to fund an expanded budget but leave a significant deficit to be bridged through borrowing.
• Safaricom's sustained top employer status highlights its commitment to employee growth and well-being.
• Newly appointed Cabinet Secretaries—William Kabogo, Mutahi Kagwe, and Lee Kinyanjui—will be sworn in today after Parliament approved their nominations following successful vetting.
• Kenya's ratification of the MLI strengthens its fight against tax avoidance by multinational companies, ensuring fairer tax practices starting May 2025.

‍
In a report by The Business Daily, members of the National Assembly are urging the new Salaries and Remuneration Commission (SRC) to implement pay rises that were halted in June 2024 following youth-led protests. The protests led to the freezing of salary increments for state officers, including MPs, and the rejection of the Finance Bill 2024. MPs, who earn Ksh725,502 monthly, had been slated for a raise to Ksh739,600 before the freeze. Lawmakers are now demanding a review of public service salaries to ensure fairness and warn the new SRC against decisions that may pit them against the public. 

More than 246,000 students who qualified for university admission after the 2024 KCSE results are facing uncertainty as the Ministry of Education has yet to announce the application process for government-sponsored placements. The Kenya Universities and Colleges Central Placement Service (KUCCPS) has not provided any updates on available slots or the selection process, leaving students and parents anxious. According to The Standard, the lack of a clear university financing model, compounded by a court ruling that nullified the 2023 funding system, has further deepened concerns. 

The National Treasury has raised Ksh48.5B from a heavily oversubscribed bond sale, surpassing its Ksh30B target as CBK reopened its 15-year and 25-year bonds. The CBK accepted bids worth Ksh23.75B and Ksh24.73B for the two bonds, offering yields of 14.2% and 15.68% respectively, while rejecting Ksh10.5B in high-priced bids to maintain lower borrowing costs. The Business Daily reports that the auction, conducted amid declining interest rates, aligns with the Treasury’s strategy to extend domestic debt maturity. 

Safaricom has been ranked the best employer in Kenya and Africa for 2025 by the Top Employer Institute (TEI), marking the fourth year in a row it has achieved this status, in a report by Capital Business. The recognition is based on Safaricom’s exceptional human resource practices across areas such as people strategy, work environment, talent acquisition, diversity, and employee well-being. Safaricom CEO Peter Ndegwa attributed the accolade to the company’s strong focus on creating an agile workplace and offering employees opportunities for professional growth. 

President William Ruto's three newly appointed Cabinet Secretaries—William Kabogo (Information, Communication, and the Digital Economy), Mutahi Kagwe (Agriculture and Livestock Development), and Lee Kinyanjui (Investments, Trade, and Industry)—will take their oaths of office today at State House, Nairobi. The National Assembly approved their appointments following vetting by the Appointments Committee, which praised their academic qualifications, professional experience, and knowledge relevant to their portfolios. The three will replace former CSs Margret Nyambura, Andrew Karanja, and Salim Mvurya, who was reassigned to the Ministry of Sports, as reported by The star. 

The Standard reports that Kenyans should prepare for increased taxes in the 2025-26 financial year as the government aims to raise Ksh3.018 trillion, a 14.7% increase from the current year's target. The National Treasury plans to implement tax reforms, expand the tax base, and enhance compliance to achieve this goal, with a long-term aim of collecting Ksh4.4 trillion annually by 2028-29. The ambitious revenue target is intended to fund a Ksh4.329 trillion budget, which includes increased recurrent expenditure and development spending. However, the revenue projection leaves a Ksh759.4 billion deficit, which the government plans to address through domestic and foreign borrowing. 

Kenya has ratified the Multilateral Convention to Implement Tax Treaty Related Measures (MLI), targeting multinational companies that shift profits to low-tax jurisdictions, with new rules effective from May 2025. The Star reports that the MLI will enhance Kenya's tax treaties by introducing anti-tax avoidance measures, aligning with the OECD’s Base Erosion and Profit Shifting (BEPS) goals to curb tax treaty abuse and protect the tax base. Currently, Kenya has 15 treaties in force and is negotiating 34 others, with the MLI expected to override certain domestic tax laws for aligned treaties, such as with the UK.