MPs Want Kenyans to Pay New Levy for Street Lighting Bills

𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝟓, 𝟐𝟎𝟐𝟒

Kenyans may face higher electricity bills if a new Street Lighting Infrastructural Support Levy (SLISL) is introduced as proposed by the National Assembly Committee on Energy, according to a report by The Business Daily. The levy, to be included in monthly electricity bills, aims to fund street lighting projects, boosting security and supporting a 24-hour economy without financially burdening the Kenya Power Company. While it promises sustainable project funding, the levy will add to the already numerous charges on electricity bills, potentially reversing recent gains in lower power costs. Critics fear it could drive up inflation, impacting goods and services prices. The rate of the levy remains undisclosed.


Kenya Railways faces a Ksh3.5 billion penalty for failing to repay loans borrowed for the Standard Gauge Railway (SGR) project, according to an audit report by Auditor General Nancy Gathungu. According to The Star, the corporation accrued Ksh41 billion in loan repayments and charges, citing insufficient cash from railway operations as the cause for non-payment. The report flagged poor financial management and procurement irregularities, including unjustified restricted tendering for Ksh9 billion worth of supplies. Kenya Railways also faces Ksh27 billion in potential court awards, with concerns over misuse of public funds and revenue leakages from its meter gauge services further deepening its financial troubles. The corporation, which generated insufficient revenue to meet loan obligations, also recorded a Ksh50 billion loss in the review period. 

The Business Daily reports that Kenya’s savings rate has fallen to 68.1 percent, marking the first decline since 2009, according to the latest FinAccess Household Survey by CBK, KNBS, and FSD Kenya. The drop from 74 percent in 2021 is attributed to financial hardships, with 90.5 percent of respondents citing economic constraints and 18.2 percent reporting loss of income. Despite the decline in savings, credit uptake has risen to 64 percent, driven by immediate financial needs like day-to-day expenses and emergencies. Formal savings channels remain the most popular, with 51.9 percent of Kenyans using them, though women continue to rely more on informal savings groups such as chamas. Saccos have also seen a rise in dormant accounts, reflecting ongoing economic pressures.

Patients requiring surgeries are enduring extended delays due to a week-long malfunction of the Social Health Authority (SHA) pre authorisation portal, according to a report by the Business Daily. This system, intended to simplify healthcare access, has become a hindrance, halting approvals for critical and elective surgeries. Hospitals have reduced or denied services for patients reliant on SHA, citing financial uncertainty. Stakeholders, including healthcare providers and patients, are increasingly frustrated with SHA’s inefficiency, less than two months into its operations. These system failures have raised serious concerns about the viability of the SHA in delivering its mandate of affordable and accessible healthcare.

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Kenya is set to experience an increase in the cost of goods and commodities after a Parliamentary Committee declined to lower the Railway Development Levy (RDL). The Star reports that the National Assembly Finance and Planning Committee's report on the Tax Laws (Amendment) Bill 2024 proposes a cap of 2% for the levy, which is higher than the current rate of 1.5% but lower than the initial 2.5% proposal. The levy, which taxes imported goods to fund the Standard Gauge Railway, was previously reduced to 1.5% to lower the cost of doing business. Business stakeholders, including the Shippers Council of Eastern Africa (SCEA), have opposed the increase, arguing it would raise import costs and negatively impact the economy. The rise in the levy comes after a drop in revenue for the financial year 2024, with RDL collections falling by Ksh7.86 billion. Additionally, the committee endorsed the introduction of a 1.5% withholding tax on the sale of scrap and a rise in excise duty on betting from 10% to 15%.