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HomeDaily NewsWednesday, August 13, 2025KRA Announces Tax Exemption, CBK Lowers Lending Rate & HELB Introduces New Loan - August 2025
Breaking News & Top Stories3 stories from 1 sources

KRA Announces Tax Exemption, CBK Lowers Lending Rate & HELB Introduces New Loan - August 2025

The Kenya Revenue Authority (KRA) has announced tax exemptions on gratuity payments for certain employees, effective July 1, 2025, as part of changes in the Finance Act, 2025. In a separate move, the Central Bank of Kenya (CBK) has lowered its lending rate, a decision expected to result in cheaper loans for Kenyans as the economy shows signs of recovery. Additionally, the Higher Education Loans Board (HELB) has introduced a new loan facility, the Training Revolving Fund, specifically for civil servants to pursue higher education and advance their professional qualifications.

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Wednesday 2:22 PMKenyans

HELB Introduces New Loan for Civil Servants: Here's What You Need to Know

HELB Introduces New Loan for Civil Servants: Here's What You Need to Know

The Higher Education Loans Board (HELB) has introduced a new loan facility, the Training Revolving Fund, for civil servants to pursue higher education. This initiative aims to support employees across various government sectors in advancing their academic and professional qualifications.

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Key Highlights

The Higher Education Loans Board (HELB) has introduced a new loan facility, the Training Revolving Fund, for civil servants to pursue higher education. This initiative aims to support employees across various government sectors in advancing their academic and professional qualifications.

  • Up to Ksh500,000 per year is available for civil servants from Ministries, County Governments, the Teachers Service Commission (TSC), and the National Police Service.
  • The loan covers Certificate, Diploma, Higher National Diploma, Master's, PhD, and Professional courses, with no processing fees.
  • Repayment is over 72 months via a check-off system at an interest rate of 4 percent on a reducing balance.
  • Applicants must secure two guarantors who are also employed within the civil service.
Tuesday 6:33 PMKenyansFirst

Kenyans to Enjoy Cheaper Loans After CBK Decision

Kenyans to Enjoy Cheaper Loans After CBK Decision

The Central Bank of Kenya (CBK) has lowered its lending rate, a move expected to result in cheaper loans for Kenyans. This decision comes as the country's economy shows signs of recovery following last year's protests.

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Key Highlights

The Central Bank of Kenya (CBK) has lowered its lending rate, a move expected to result in cheaper loans for Kenyans. This decision comes as the country's economy shows signs of recovery following last year's protests.

  • The CBK cut the Central Bank Rate (CBR) by 25 basis points to 9.50 per cent from 9.75 per cent.
  • The decision was made by the Monetary Policy Committee (MPC) during its meeting held on August 12, 2025.
  • This new rate is in line with the country’s lowest ever and aims to bring hope for borrowers seeking more affordable credit.
Tuesday 6:45 PMKenyans

KRA Announces Tax Exemption for Certain Employees

KRA Announces Tax Exemption for Certain Employees

The Kenya Revenue Authority (KRA) has announced significant tax exemptions on gratuity payments for certain employees, effective July 1, 2025. This change, introduced through the Finance Act, 2025, aims to reduce the tax burden on retirees and those leaving long-term employment.

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Key Highlights

The Kenya Revenue Authority (KRA) has announced significant tax exemptions on gratuity payments for certain employees, effective July 1, 2025. This change, introduced through the Finance Act, 2025, aims to reduce the tax burden on retirees and those leaving long-term employment.

  • Gratuity payments earned after July 1, 2025, are now exempt from income tax for both employees and employers, covering both public and private sectors.
  • KRA clarified that gratuity earned before July 1, 2025, remains taxable, even if paid after this date, requiring employers to allocate it to past years for tax calculation.
  • An additional exemption for gratuity payments from public pension schemes is effective December 27, 2024, under the Tax Laws (Amendment) Act, 2024.
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