The Kenya Revenue Authority (KRA) has clarified that a recent tribunal ruling does not grant it blanket powers to tax all bank deposits. Instead, the ruling affects only deposits that lack proper documentation verifying them as loans or capital injections, deeming them taxable income under Section 3 of the Income Tax Act. This clarification follows social media claims sparked by a tribunal decision involving a pipe manufacturing company.

• The ruling by Tribunal Appeal E1116 of 2024 was issued on September 2.
• The case involved a pipe manufacturing company whose deposits from 2019-2022 were questioned by KRA.
• Section 3 of the Income Tax Act establishes the charge to income tax in Kenya.
• Unexplained deposits, without documentation like loan agreements or shareholder records, will be treated as taxable income.

Immigration Principal Secretary Belio Kipsang has revealed that three technology firms maintaining Kenya's eCitizen platform earn over Ksh3 million daily, totaling Ksh1.1 billion annually. This disclosure comes amidst ongoing criticism regarding a Ksh50 convenience fee charged on the platform, which an audit report deemed unlawfully imposed.

• The three firms collectively receive Ksh115 to Ksh120 million per month for maintenance, according to PS Kipsang.
• A Special Report on eCitizen from March stated that Kenyans have irregularly paid over Ksh2.1 billion through the Ksh50 transaction fee.
• Auditor General Nancy Gathungu reported that the National Treasury has not signed Service Level Agreements (SLAs) with financial service providers for the eCitizen portal, leaving Ksh7.05 billion in collection accounts in limbo.

The World Bank has expressed concern over increasing non-performing loans in Kenya's banking sector, which threaten to cause losses for local banks. While the sector is stable, these loans are a major vulnerability, potentially eroding capital buffers.

• Kenya's non-performing loan rate stands at 14.3 percent, ranking third highest in the region after Ghana (22 percent) and the Republic of Congo (15.2 percent).
• The World Bank commended Kenya for successful implementation of digital tax administration systems and efforts to boost digital financial services.
• The Central Bank of Kenya (CBK) has licensed 154 digital lenders to date, with over 700 applications received since 2022.