Use of Credit, Debit Cards Drops to a 6-Year Low

Friday, 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 20, 𝟐𝟎𝟐𝟒

In a report by Money254, Kenyan workers are set to benefit from a tax relief on the Housing Levy and SHIF contributions, following an announcement by the Kenya Revenue Authority (KRA). Under the new adjustments, statutory deductions for these schemes will no longer be subject to Pay As You Earn (PAYE) tax, effective December 2024. This change stems from the Finance Act 2023, offering a modest income boost for most workers, particularly those with higher earnings. The move aims to ease the financial burden on employees amid rising living costs.

The use of debit and credit cards for payments in Kenya has dropped to a six-year low, signaling a shift in consumer preferences toward mobile money platforms and digital wallets. This decline reflects changing payment behaviors as mobile-based solutions continue to dominate the financial landscape, offering convenience and accessibility. The trend underscores the need for financial institutions to innovate and adapt to evolving payment technologies to remain competitive in the market as reported in the Business Daily.

HF Group has successfully raised Ksh6.4 billion through an oversubscribed rights issue, marking a milestone in its capital restructuring efforts. Business Daily reports that the offering, aimed at bolstering the lender's financial position and scaling its digital transformation, attracted strong demand from investors. Priced at Ksh1 per share, the rights issue reflects renewed confidence in HF's strategic pivot, which targets enhanced lending capabilities and operational efficiency. This marks HF's first rights issue since 2015, signaling its resurgence in Kenya’s competitive financial sector.

According to a report by Capital Business, President William Ruto has appointed former Laikipia Governor Ndiritu Muriithi as the new Kenya Revenue Authority (KRA) Board Chair, replacing Anthony Mwaura. Mwaura, whose tenure faced legal challenges, now heads the Kenya Rural Roads Authority (KeRRA). Other notable changes include Kipchumba Murkomen taking over the Interior Ministry, Lee Kinyanjui as Cabinet Secretary for Investments, Trade, and Industry, and Salim Mvurya leading the Youth, Creative Economy, and Sports docket.

Isuzu and CFAO Motors now control 80% of Kenya's new vehicle market, up from 67% in 2020, as their dominance continues to reshape the industry. According to the Business Daily, this surge, driven by robust sales of commercial vehicles and strategic consolidation, highlights their ability to weather declining industry sales, which have dropped from a 2015 peak. CFAO, born from the merger of DT Dobie and Toyota Kenya, holds a 17.9% share, while Isuzu maintains leadership with popular models like buses and pickups. Other players, including Simba Corp and Crown Motors, have lost ground amidst industry restructuring.