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Kenya: Finance Bill Amendments

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Kenya Kwanza Parliamentary Group met at State House Nairobi on Tuesday.

MPs and Senators were taken through the changes made to the Finance Bill 2024 by Finance Committee Chairman Kimani Kuria.

Speaking at the meeting, President William Ruto said the changes to the Finance Bill have taken into account the views of the people and other stakeholders during public participation sessions.

The President commended Kenyans for their contributions through public participation.

“We are going to end up with a product in Parliament that came from the Executive and has been interrogated by the Legislature. Through public participation, the people of Kenya have had a say,” he said.

The Finance Bill has been amended to remove the proposed 16 per cent VAT on bread, transportation of sugar, financial services, foreign exchange transactions as well as the 2.5 per cent Motor Vehicle Tax.

Additionally, there will be no increase in mobile money transfer fees, and Excise Duty on vegetable oil has also been removed.

Levies on the Housing Fund and the proposed one on Social Health Insurance will not attract income tax, putting much more money in the pockets of employees.

The proposed Eco Levy will only be imposed on imported finished products that contribute to e-waste and thus harm the environment when they are no longer in use.

Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motorcycles, and I’ll not attract the Eco Levy.

The President said the government is making efforts to curb importation of products that can be locally produced, thus protecting local manufacturing and securing jobs for the people.

“The stability you see in the foreign exchange regime is a result of our deliberate policies to reduce imports of things that are produced locally,” the President said.

He said the Eco Levy will be imposed on imported finished products, while those locally manufactured are exempted.

Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres, and motorcycles, will not attract the Eco Levy.

The threshold for VAT registration has been increased from KSh5 million to KSh8 million, meaning that many small businesses will no longer need to register for VAT.

The electronic invoicing ETIMS, recently introduced by the Kenya Revenue Authority, has been rescinded from farmers and small businesses with a turnover of below KSh1 million.

The Finance Bill has also imposed excise duty on imported table eggs, onions and potatoes to protect local farmers.

In the Bill, excise duty on alcoholic beverages will now be taxed based on alcohol content and not volume.

Additionally, pension contributions exemption will increase from KSh20,000 per month to KSh30,000.

On his part, the President explained that more resources have been allocated to education because it is the greatest equaliser

“The money we are putting into education is not an expenditure; it is an investment because we are investing in the future of our children,” he said.

He said KSh18 billion has been provided for the employment of Junior Secondary teachers who are on internship.

He said funds have also been provided to hire 20,000 interns next month.

At the same time, President Ruto said the Executive and the Legislature will continue to work together in making the right decisions for the country.

President Ruto said tough decisions have yielded fruits, citing the drop in inflation from 9 per cent in 2022 to 5.1 per cent in May and strengthening of the shilling against the dollar.

He said the government is working on achieving a balanced budget in the next three years, pointing out that this will reduce borrowing and ensure that the country lives within its means.

President Ruto said the new university funding model has revolutionised the financial situation of public universities, noting that parents who can afford to pay for their children’s education have not applied for scholarships, freeing up more money for students from poor families.

Deputy President Rigathi Gachagua said increasing tax on alcohol with high alcoholic content will boost the fight against alcoholism.

On the increased allocation of funds to the National Government Constituency Development Fund, he said it will enable MPs to initiate transformative development in their constituencies.

Prime Cabinet Secretary Musalia Mudavadi said the Kenya Kwanza administration will not fall into the trap of being a populist government, but one that makes the right decisions for the good of the nation.

Embu Governor Cecily Mbarire, who is also the chairperson of the United Democratic Party (UDA), asked legislators to pass the Finance Bill as Kenyans await major development programmes that will transform their lives.

Molo MP Kimani Kuria, who is also the chairperson of the Finance Committee in the National Assembly, said the Finance Bill aims to generate an additional KSh302 billion in revenue, which is intended to bolster the projected total revenues for the year to KSh3.3 trillion.

Kiharu MP Ndindi Nyoro, who is also the chairperson of the Budget and Appropriations Committee in the National Assembly, said the Bill is crafted to finance the country’s development agenda, citing education and agriculture as the biggest beneficiaries.

During the meeting, President Ruto asked the legislators to focus on the implementation of programmes that will transform the lives of the people.

“The people were so united in electing us; let us also be united in serving them,” he said.

Distributed by APO Group on behalf of President of the Republic of Kenya.

Finding Sanctuary: Safe Spaces Empower Refugee Women to Heal and Thrive

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In the midst of displacement, trauma can linger like a shadow. For many refugees, especially women and girls, the journey to safety is marred by unimaginable hardships. Fleeing conflict and persecution, they are often confronted with the harrowing reality of sexual and gender-based violence (GBV) both within their communities and during their perilous journeys. Safe spaces, however, are offering a beacon of hope, providing crucial support and fostering a path towards healing and empowerment.

In Isingiro district, which hosts two refugee settlements of Nakivale and Oruchinga, lies a sanctuary of hope and healing: two safe spaces established by Coalition for Action on 1325 (COACT) in collaboration with UN Women under the UN Central Emergency Response Fund (CERF). Since their inception in 2023, the safe spaces have served as more than just physical structures; they are symbols of resilience and solidarity. Offering a myriad of services from psychosocial support to economic empowerment programs, these spaces have become lifelines for those in need.

At the heart of the safe spaces are individuals like Mbabazi Charity, a counsellor at the Oruchinga safe space, whose unwavering dedication has transformed lives. “When we started operations, the number of GBV cases was alarmingly high,” she recalls. “But through counselling and community awareness, we’ve witnessed a remarkable shift. Women and girls are finding their voices, reclaiming their agency, and paving the way for change.”

Among those who have found refuge within these walls is Asha Uwimana (not real name), a survivor of the Rwanda genocide whose journey to healing has been grueling. “The trauma of losing my family still haunts me,” she shares, her voice quivering with emotion. “But through the support and counselling I’ve received at the safe space; I’ve begun to rebuild my life.”

For Asha, like many others, the safe space is more than just a place of healing; it’s a launchpad for a brighter future and offered more than just therapy. A multipurpose cash transfer of USD 20 from the project allowed her to invest in a skill she learned from her father – handicraft making. With training in financial literacy and business planning offered by the UN Women supported project, Asha transformed her talent into a thriving bag-making business and is now saving USD 8 per week with her village savings and loans group.

“With each bag I make, I reclaim a piece of myself,” she says, her eyes gleaming with determination. “And with each sale, I inch closer to a future of stability and security for my family.”

Asha’ story is not unique. Januaria, another program beneficiary, battled not only the trauma of displacement but also health issues. The safe space provided not just a listening ear, but also the resources to address her needs. A cash grant coupled with guidance on business management empowered her to launch a knitting business. Now Januaria not only supports her family but also uses her skills to empower others, teaching knitting to child mothers and school dropouts. In 2023 Januaria equipped 36 teenage mothers and school dropouts in her community with knitting and handcraft making skills, enabling them to look beyond their challenges and engage into productive lives.

But perhaps the most profound impact of the safe spaces lies in the ripple effect it has on communities. Through community awareness sessions and economic empowerment initiatives, the safe spaces are not only breaking the cycle of violence but also fostering a culture of resilience and solidarity. In Juru Subbase camp in Nakivale Settlement, New Hope Village Savings and Loan Association has emerged as a lifeline for its members, offering not only financial stability but also a pathway to brighter futures.

“When we first came together as a group, we lacked the financial literacy and management skills needed to navigate the complexities of entrepreneurship,” recalls Francoise, a proud member of the association. “But through the support and guidance offered at the Juru safe space, we began to chart a new course—a course filled with promise and opportunity.”

In 2023, the group received a much-needed cash grant of USD 54, a lifeline that would propel them towards newfound prosperity. With the financial literacy and management skills they had gained from the program, they purchased raw materials for making baskets—a venture that would soon yield remarkable dividends. With earnings totaling USD 802, the association members found themselves not only financially secure but also poised for a brighter future. Each member received a share of the profits, USD 32, a windfall that would change their lives in profound ways.

For Francoise, the impact of this windfall was immediate and profound. “I used the money to purchase solar lighting equipment,” she shares, her voice brimming with excitement. “Now, my children can study at night, uninterrupted by the darkness that once enveloped our home. This, I believe, will boost their academic performance and pave the way for a brighter future.”

Safe spaces are not merely physical structures; they are cornerstones of hope. By providing a safe haven for healing, fostering economic empowerment, and promoting a culture of respect for women’s rights, these spaces are empowering refugee women to not just survive, but to thrive. Their stories are a powerful testament to the resilience of the human spirit and the transformative potential of investing in the well-being of women and girls.

Distributed by APO Group on behalf of UN Women – Africa.

Chargé d’Affaires Wang Sheng Meets with Hon. Rodney Sikumba, Minister of Tourism of Zambia

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On 17 June 2024, Chargé d’Affaires Wang Sheng met with Hon. Rodney Sikumba, Minister of Tourism of Zambia. The two sides exchanged views on further strengthening China-Zambia cultural and tourism cooperation.

Mr. Wang said that this year marks the 60th anniversary of the establishment of diplomatic relations between China and Zambia, and it is also the Year of Culture and Tourism. This May, Hon. Minister Sikumba led a delegation to China to attend the opening ceremony of the Year of Culture and Tourism, which effectively promoted the cultural exchanges and tourism cooperation between the two countries. The two sides should work together to carry out more colorful cultural and tourism programs and continue to strengthen China-Zambia friendship and people-to-people bonds.

Minister Sikumba thanked the Chinese side for its hospitality during his visit to China and its strong support for cultural and tourism cooperation between the two countries. Minister Sikumba said that Zambia has rich tourism resources and a visa-free policy for Chinese tourists. Zambia will continue to improve its tourism infrastructure to attract more Chinese tourists.

Chinese actor Huang Lei and his team, who is in Zambia for events of the Year of Culture and Tourism, participated in the meeting.

Distributed by APO Group on behalf of Embassy of the People’s Republic of China in the Republic of Zambia.

‘World Bank Grant for Women Empowerment misallocated’

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The Public Accounts Committee (PAC) has raised concerns over the utilisation of a Shs803 billion World Bank grant intended for the Generating Growth Opportunities and Productivity for Women (GROW) Project.

According to a report of the Auditor General, despite the grant’s primary goal of supporting established women-led businesses, a significant portion of the money is being directed towards mind-set change programmes, infrastructure development and competitions rather than directly benefiting the women entrepreneurs as financial aid.

The implementation of the project which started in January 2023 and ends in December 2027 targets female owned enterprises in all districts, municipalities and cities.

However, while the Ministry of Gender, Labour and Social Development and the Private Sector Foundation interfaced with the committee on Monday, 17 June 202, it emerged that only Shs133 billion was going to the women directly, while some of the funds would be given out as loans at an interest rate of 10 per cent.

Committee members stated that although 10 per cent appeared small and manageable, government was charging Ugandans interest on money they got as a grant.

Committee Chairperson, Hon. Muwanga Kivumbi expressed concern at the expenditure distribution revealing that only Shs133 billion of the total grant is allocated to direct financial support for women-led enterprises while the rest of the funds are predominantly used by the Ministry of Gender and the Private Sector Foundation, the project’s implementing partners for secondary activities.

 “In simple terms, out of the US$217 million, the only money out there for women available for them to borrow from is US$35 million, this is not acceptable,” Muwanga Kivumbi said.

The Commissioner for Labour, Industrial Relations and Productivity at the Gender Ministry, Alex Asiimwe said that the grants will target sectors in which women are predominantly engaged and have potential for scale and job creation.

He added the targeted sectors include agribusiness, manufacturing and hospitality, particularly focusing on foods and beverage as well as crafts and decorations.

AUDIO Kibenge

The Permanent Secretary in the Ministry of Gender,  Aggrey David Kibenge told the committee that the grant foundation required a holistic approach despite it focusing on women who are already in business.

“The project is structured in a manner that does not address only the issue of credit because we could give women credit and they go and fail to access even that credit in a bank,” he said.

Tororo South County Member of Parliament, Hon. Fredrick Angura called for a re-evaluation of the grant’s allocation to ensure that a more substantial portion directly reaches the women entrepreneurs.

AUDIO Angura

Distributed by APO Group on behalf of Parliament of the Republic of Uganda.