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Treasury CS John Mbadi signing for the loan facility, in Beijing on September 6, 2024.
 
Employers are facing a tough uphill battle as more tax deductions and penalties are set to kick in if the new proposed tax bills are enacted.

In one such bill,  even though the Finance Act 2023 amendment had made the withholding tax collections due within five working days without any defined penalties, the new proposal seeks to take away this relief. 

If the new amendment bill passes, employers and individuals who remit withholding tax will be charged a hefty amount for failing to adhere to this time limit.

According to the Tax Procedures (Amendment) (No. 2) Bill 2024, a person who is required under the section to withhold tax and, without reasonable cause, fails to do so would suffer a penalty of 10 per cent of the amount owed.

“A person who is required under this section to withhold tax and, without reasonable cause, fails to withhold the whole amount of the tax which should have been withheld; or fails to remit the amount of the withheld tax to the Commissioner by the fifth working day after the deduction was made, shall be liable to a penalty of ten per cent of the amount not withheld or remitted,” part of the bill reads.

In the Finance Bill 2024, the government also sought to introduce a withholding tax on goods supplied to public entities at a three per cent rate for residents and five per cent for non-residents. Withholding tax is a type of income tax paid to the government by the payer of the income or the employer rather than by the recipient of the income or the employee.  

It is deducted at the source and charged to the employer instead of from the employee and is significantly lower than the Pay-As-You-Earn (PAYE) Tax.

Another proposal in the bill that has been basically plucked from the Finance Bill 2024 and could highly impact what employers remit to their employees is the one proposing an increase in the monthly deductible for pension contributions. 

If this is enacted, it could transition the pension sector from Exempt-Exempt-Exempt to Exempt-Exempt-Tax increasing the contributions from Ksh20,000 to Ksh30,000.

This revelation comes just as the National Treasury Cabinet Secretary (CS) John Mbadi confirmed that the government would be reviewing the National Social Security Fund (NSSF) Act 2024 in order to level the playing field for employers in the private sector seeking to introduce their own private pension for their employees. 

“The government is committed to addressing these issues to safeguard the operations of all pension funds and give employees the most favourable pension benefits,” Mbadi stated in his November 4 address.

Even after it was declared unconstitutional by the Employment and Labour Relations Court (ELRC) on four grounds, the contentious act that has fought legal battles since its enactment continues to work.

In a ruling in February of this year, the Supreme Court through Chief Justice Martha Koome lifted the orders of the Court of Appeal that allowed the government to increase mandatory pension contributions under the NSSF scheme and referred the matter back.

"In the circumstances, this case is to be remitted to the Court of Appeal to determine the substantive merits of the Judgment of the ELRC. Due to the nature of the matter, the surrounding public interest, and the time taken by the case in the corridors of justice, it is prudent that the matter be heard on a priority basis," the CJ ruled. By Maurine Kirambia, Kenyans.co.ke

 Kenya has emerged as the country where individuals spend the most time on social media, a new report has revealed.

The GWI report compiled by Cable.co.uk revealed that most Kenyans spend an average of 3 hours and 43 minutes daily.

 

This is against the global average of 2 hours 23 minutes.

 “The world spends a huge amount of time using social media too, with the latest research from GWI revealing that the “typical” social media user now spends 2 hours and 23 minutes per day using social media,” read the report in part.

This places Kenyans at the forefront of global social media engagement, surpassing countries like South Africa and Brazil, which follow closely with daily averages of 3 hours and 37 minutes and 3 hours and 34 minutes, respectively.

Filipinos, Nigerians, and Colombians are also notable participants in this digital landscape, spending an average of 3 hours and 33 minutes, 3 hours and 23 minutes, and 3 hours and 22 minutes per day, respectively.

Similarly, the study indicates that 2023 saw the addition of 266 million new social media users worldwide, equating to a staggering 8.4 new users every second.

The data also reveals that humanity is set to collectively spend an astounding 500 million years on social media in 2024.

In particular, countries along the western edge of the Persian Gulf demonstrate high ratios of social media users relative to their populations. By , Capital News

Displaced community members who have fled the M23 conflict speak during a Doctors Without Borders ..Getty Images

On October 31, 2024, Dr Denis Mukwege, a world-renowned gynecologist, human rights activist and Nobel Peace Prize laureate from east Congo, addressed the U.K. Parliament testifying before a newly launched inquiry into conflict-related sexual violence (CRSV) in the Democratic Republic of Congo (DRC).

As he emphasized, “During the last decades of continued war and instability, our country has been subject to repeated wars of aggression by neighboring countries, including Rwanda and Uganda. Women and girls have paid and continue to pay a very heavy price in this forgotten war and neglected crisis.”

The issue of CRSV in the DRC is not a new problem, but one that has been enjoying impunity for decades. Dr Mukwege can testify to this having treated thousands of victims/survivors of the crime. Indeed, since the establishment of the Panzi Hospital in 1999, Dr Mukwege treated more than 83,000 victims/survivors. 

Despite awareness raising and some steps taken to combat impunity, CRSV in the DRC persists to this day. As emphasized by Dr Mukwege, in 2023, “more than 123,000 cases of gender-based violence (GBV) were reported, a 300% increase in only three years, and over 61,000 victims have been treated by humanitarian partners in the first half of the year 2024.

This represents one victim every four minutes.” Dr Mukwege added that “Even though [these numbers] are extremely shocking, they represent only the tip of the iceberg, as many places affected by the ongoing conflict remain inaccessible for health and humanitarian aid workers, and many victims died or are too traumatized to talk and seek much needed support and care.” 

This spike is attributed to the escalation of armed violence since 2021 resulting from the resurgence of M23 rebel armed group and the Rwandan Defense Forces (RDF).While the DRC has laws criminalizing sexual violence, implementation continues to be a challenge.

Furthermore, as Dr Mukwege explained, “Shame, silence, stigmatization, and fear of reprisals too often prevent women from filing a complaint. On top of these obstacles, the lack of confidence in State institutions, particularly in the justice system, dissuades many Congolese victims from filing complaints and often leads them to resort to friendly settlements under local customary law.”

Dr Mukwege mentioned some efforts to combat impunity. Among others, on July 27, 2018, the DRC High Military Court upheld the conviction of 11 men, including a provincial deputy, found guilty in December 2017 of crimes against humanity for the rape of dozens of young children and girls and for murders in the village of Kavumu, 25 km from Bukavu.

On May 15, 2023, the Military Tribunal of Uvira sentenced Munyololo Mbao, alias Ndarumanga, former leader of a faction of the Raia Mutomboki armed group in the DRC, to life imprisonment for crimes against humanity. Among the charges confirmed by the court are the crime of murder, torture, rape, sexual slavery as well as forced pregnancy, which constitutes a historic precedent before a national court. 

Nonetheless, access to justice remains very limited, if not nonexistent, for most victims/survivors. Mr Mukwege made several recommendations on how to address the issue of justice and accountability, including by expanding mobile courts and other community-based justice mechanisms, with increased funding and long-term sustainability plans. These initiatives should be supported by robust witness protection programs to ensure the safety of victims/survivors and their families.

Furthermore, Dr Mukwege indicated that: “Congolese men and women also have the right to their Nuremberg. This is why we are advocating alongside victims and survivors for the establishment of an International Criminal Tribunal for Congo and/or mixed specialized chambers. The high level of involvement of foreign armies on Congolese territory, the international or internationalized dimension of the conflicts and of the crimes committed in the DRC require an international and/or internationalized response from justice.”

 

Dr Mukwege added: “All levels of responsibility – national, regional and international – must be established, and Rwanda and Uganda must be held accountable for their repeated violation of international law and human rights, their destabilization activities as well as their leading roles in the plundering of natural and mineral resources and the commission of international crimes committed in the DRC. Coordinated international sanctions of the United Nations, the United States, the European Union and the UK, and legal action should be considered against individuals and entities authors or complicit in these crimes.”

As Dr Mukwege stated, the responses must ensure the restoration of the dignity of victims of CRSV. However, as he also added, victims/survivors are provided with very little assistance. He mentioned conversations with victims/survivors who were not able to leave their shelters due to lack of clothing.

In light of the dire situation in the DRC, the new ad-hoc inquiry, led by cross-party British Parliamentarians aims to hear from victims/survivors and organizations helping them, and experts, and identify recommendations for the U.K. Government and other states. Over the next months, the inquiry will accommodate oral testimonies, as accompanied by a call for written submissions.

As the situation in the DRC continues to be neglected by the international community, more needs to be done to shine a light on the evidence of the crimes, and to drive comprehensive responses. Dr. Ewelina U. Ochab, Forbes

Somalia’s recent push for democratic reforms through a one-person, one-vote (OPOV) electoral system has met with significant skepticism from political stakeholders, according to a new Report by the Heritage Institute.

The National Consultative Council’s (NCC) decision on October 30, 2024, championed by President Hassan Sheikh Mohamud, aims to transition the country away from its controversial indirect election system. However, the proposal faces several substantial challenges and has sparked intense debate among the nation’s political actors.

Key Challenges

The Heritage Institute’s report identifies several major obstacles to implementing the OPOV system:

Past Failed Promises: The government’s previous unfulfilled commitment to implement OPOV for local and state elections in 2024 has damaged credibility


Leadership Legitimacy: The agreement involves federal member state leaders whose terms expired over a year ago


Regional Opposition: Two crucial federal states, Puntland and Jubbaland, along with the SSC Khatumo administration, remain outside the agreement


Timing Concern: The late-term push for reform has raised suspicions about potential term extensions

Path Forward

The report suggests several key recommendations for progress:

  1. Develop a consensus-driven electoral model involving all stakeholders
  2. Implement robust electoral standards regardless of the chosen system
  3. Prioritize national unity over short-term political gains

President Mohamud has extended an olive branch to dissenting federal member states, which analysts view as a positive step toward reconciliation. However, the Heritage Institute emphasizes that Somalia’s leaders must prioritize electoral integrity over specific voting mechanisms.

“Whether achieved through direct or indirect elections, a process free from manipulation by state and federal actors is the only way to restore public trust in Somali democracy,” the report concludes. 

The push for electoral reform comes against the backdrop of Somalia’s troubled electoral history, including the political turmoil of 2016/2017 and 2021/2022, where elections were marked by widespread fraud and corruption. The success of these reforms could mark a crucial turning point in Somalia’s journey toward stable democratic governance.  by: Abdirisaq Shino, Horseed Media

Sudan has cancelled a $6 billion deal with the United Arab Emirates to develop a Red Sea port, Finance Minister Gibril Ibrahim said on Sunday, accusing Abu Dhabi of supporting the Rapid Support Forces (RSF) in the country’s ongoing conflict.

The deal, signed in December 2022, would have seen Abu Dhabi Ports and Invictus Investment, a company managed by Sudanese businessman Osama Daoud, build and operate the Abu Amama port, located about 200 km (124 miles) north of Port Sudan.

“After what happened, we will not give the UAE a single centimeter on the Red Sea coast,” Ibrahim told a news conference in Port Sudan. He was referring to allegations that the UAE has provided backing to the RSF, which has been battling Sudan’s army since April 15.

The scrapped project was part of a larger investment package that also included a free trade zone, an agricultural project, and a $300 million deposit to Sudan’s central bank.

Ibrahim, who also heads the Justice and Equality Movement, denied reports that he had resigned as finance minister in protest over the dismissal of the head of the tax authority. “We are still in our position, but we have reservations about the signals from our executive body,” he said. “Reservations are not managed by resignations.” Sudan Tribune

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