Pay As You Earn (PAYE) is a method of tax collection on income earned by employees in Kenya. Administered by the Kenya Revenue Authority (KRA), PAYE is a key component of the country’s taxation system, ensuring that income tax is deducted from an employee’s salary or wages by their employer and remitted directly to the […]
In the realm of employment compensation, understanding the distinction between basic salary and allowances is crucial for both employers and employees. These two components play significant roles in determining the overall financial package an employee receives, influencing their financial planning, job satisfaction, and overall well-being. This essay delves into the definitions, differences, and implications of
Gross salary is a critical concept in the realm of employment compensation, representing the total income earned by an employee before any deductions are made. In Kenya, as in many other countries, understanding gross salary is essential for both employers and employees. This essay explores the meaning of gross salary, its calculation, and its implications,
Taxation is a fundamental aspect of any economy, serving as a primary source of government revenue. In Kenya, understanding how to calculate tax payable on a taxable salary is crucial for both employees and employers. This essay delves into the intricacies of the Kenyan tax system, specifically focusing on how to calculate tax payable on
Net salary is a critical concept in the world of employment compensation, representing the actual take-home pay that an employee receives after all deductions have been made. In Kenya, as in many other countries, understanding net salary is essential for both employees and employers. This essay explores the meaning of net salary, how it is
The Integrated Payroll and Personnel Database (IPPD) is a system used by the Kenyan government to manage payroll and human resource information for public sector employees. The IPPD system integrates various HR functions to streamline and enhance the efficiency of managing personnel data and payroll processes. Here are the key features and functions of the
The Government Human Resource Information System (GHRIS) in Kenya is an online platform designed to streamline and manage human resource processes within the Kenyan public sector. It serves as a comprehensive system for automating various HR functions, thereby enhancing efficiency, transparency, and accountability in the management of public service employees’ data. Key Features and Functions
A P9 form in Kenya is a tax document provided to employees, detailing their earnings and the taxes deducted within a given financial year. For government employees, accessing the P9 form through the Government Human Resource Information System (GHRIS) portal is a common process. Here’s a step-by-step guide on how to obtain your P9 form
A civil servant payslip in Kenya typically includes various details that provide a comprehensive breakdown of the employee’s earnings, deductions, and other relevant information. Here’s a detailed look at what you can expect to find on a Kenyan civil servant’s payslip: Key Components of a Civil Servant Payslip in Kenya Example of a Civil Servant
Interest rates are pivotal to the economic landscape, serving as the price of money and a key determinant of borrowing and lending decisions. They influence various economic variables, including consumption, investment, inflation, exchange rates, and overall economic growth. Central banks often adjust interest rates as a tool to achieve macroeconomic objectives such as price stability,
Achieving financial freedom is a journey that requires discipline, commitment, and smart financial habits. Here are nine habits to help you reach financial freedom: 1. Set Clear Financial Goals Setting clear financial goals is the foundation of financial planning. It involves identifying specific objectives, such as saving for retirement, buying a home, or building an
Navigating the complexities of personal finance can be daunting, particularly as financial landscapes evolve and individuals face increasingly diverse investment options and retirement considerations. In this intricate realm, a professional financial planner emerges as a beacon of expertise and guidance. Who is a Financial Planner? A financial planner is a trained and certified professional who
commonly known as an FD account, is a type of savings account offered by banks and financial institutions. In a fixed deposit account, customers deposit a certain sum of money for a specified period, at a fixed interest rate.
In Kenya, there are several investment vehicles that you can consider to grow your wealth. Here are some popular options: Let’s look at each of the investment vehicles and how to approach each. Certainly! Let’s delve into the details of each investment vehicle available in Kenya, along with their advantages, disadvantages, expected returns, and how
Being in constant debt poses a multifaceted challenge that extends beyond financial strain, impacting emotional well-being, and future prospects. High-interest payments, reduced financial flexibility, and strained relationships characterize the financial aspect, while stress, anxiety, and depression mark the emotional toll. This might lead to long-term consequences including perpetuating a cycle of debt, limiting opportunities, and
Fuliza M-Pesa loan is a continuous overdraft service offered by Safaricom, in collaboration with the Commercial Bank of Africa (CBA).
M-Shwari, a revolutionary mobile banking service in Kenya, offers convenient access to loans and savings through your M-Pesa account. But how does it determine your loan limit?
In the ever-evolving landscape of financial services, M-Kopa cash loan stands out as a beacon of empowerment for millions across Africa. Founded in 2010, M-Kopa has revolutionized lending, offering accessible solutions to those traditionally underserved by conventional banking systems. As we step into 2024, M-Kopa continues to break new ground, providing more than just loans—it’s
In a world dominated by debt, prioritizing loan repayments is crucial. It alleviates financial stress by boosting credit scores and enabling personal and professional growth. Managing loan payments efficiently helps achieve long-term goals like home ownership, entrepreneurship, and comfortable retirement. Additionally, a thorough repayment plan battles interest rates, prevents late fees, and fortifies against economic downturns, securing a stable financial future and empowering you as the ultimate financial superhero.
In today’s digitally-driven educational landscape, the fusion of technology and teaching has become indispensable. Canva, renowned for its design prowess, has emerged as a transformative tool for educators. This article explores how TSC educators can strategically incorporate Canva in the classroom, with a focus on optimizing the teaching experience for both teachers and students. Canva:
In the dynamic and often unpredictable world of business, having access to quick and reliable sources of cash is crucial for maintaining operations and seizing opportunities. One financial tool that has gained both popularity and controversy is the payday loan.
In Kenya, check-off loans are a type of loan provided by an employer to an employee, with the loan payments being deducted directly from the employee\’s salary. The employer acts as a facilitator of the loan, as they are responsible for deducting the loan payments from the employee\’s salary and forwarding the payments to the
This informality is sometimes necessitated by the idea that lending folks we know, is better for reasons known only to psychology and Advanced Economics. At other times, though, ni kwa sababu wako CRB and thus banks, for a lack of a better word, hate them
But like most humans, advice follows the path of least resistance going from one ear to the other without having any interaction at all with the brain. Careful spending is thrown out of the window as we let wastefulness in, not knowing that we’re reducing the quality of our lives.
I have a secret that will get you out of the impending jam and since I care about you, I’ll let you into it. OK, listen (or read) carefully. To avoid all the hassle that comes with January shopping, buy your school supplies now
As the year winds down, many of us look forward to the joyous holiday season. However, it can also be a financially demanding time. To make the most of your holiday without draining your bank account, it’s important to plan and save ahead. In this article, we will explore practical tips on how to save
Living in Kenya has become an expensive affair, especially with the rising costs of housing, transportation, and food. In 2023, it is expected that the cost of living will continue to increase. However, with the help of HelaPesa, you can navigate these rising costs and manage your finances effectively. The cost of living index in
In today’s fast-paced world, financial stability is a top priority for many individuals. When it comes to managing our money, two key strategies often come to mind: investing and saving. Both methods aim to grow our wealth and secure our financial future, but they differ greatly in their approach and potential outcomes. Understanding the difference
What comes to mind when you hear check-off loan? The first thing to understand about check-off loans is that they are a transaction between the company you work for, the financial institution that gives the loan, yourself (as an employee of the firm), and your income. If you need money quickly, a check-off loan is
Mobile money has revolutionized the lending landscape in Kenya, providing quick and convenient access to loans. With just a few taps on a mobile app, individuals can secure funds for various purposes, such as emergencies, business ventures, or personal expenses. These digital lenders leverage technology to streamline the loan application process, eliminating the need for
According to a survey conducted by the Kenya National Bureau of Statistics, more than 80% of Kenya’s adult population uses mobile money providers, and digital loan services have become an increasingly important avenue for people to access credit, as many are unable to obtain loans from traditional providers such as banks. So, why do Kenyans
When your relatives or friends are struggling financially, lending money to them can be a kind gesture. However, it can become troublesome if your efforts to assist result in conflicts or you encounter financial problems as a result. Truth is, we have all found ourselves in a situation where we could not say ‘no’ to
When a lender gives you a line of credit, they also have a set of checklist to see that you are not likely to default on your loan. It’s a system designed to warn the lender early on so that they can take the necessary steps to ensure they don’t lose their repayments
Have you tried to apply for a line of credit and it was denied by your lender? Sometimes it’s not always obvious what you did wrong for your credit to be declined.
One of the biggest roadblocks to financial stability is high levels of debt. To reduce your debt, you’ll need to focus on paying off high-interest loans first, such as credit card debt.
Debt management in Kenya refers to the strategies and practices used by individuals, businesses, and government agencies to manage and reduce their debt
A loan default occurs when a borrower fails to repay a loan according to the terms agreed upon in the loan agreement.
what is a collateralized loan? Usually, when applying for a loan you personally guarantee its repayment in full. This includes putting your assets in line to cover the loan in case of a default. This is called collateralization of the loan. Collateralization is the act of using an asset as a security for a loan.
These alternatives have been designed to cater to the specific needs of small enterprises and have been instrumental in providing financial services to low-income populations and small enterprises in Kenya
Digit is a savings app that automatically saves small amounts of money from your checking account into a savings account.
with the current economic headwinds in Kenya, a recession is inevitable. A recession is a period of economic decline characterized by a decrease in the gross domestic product (GDP), employment, and trade lasting typically for six months or more. Recessions are usually accompanied by a drop in consumer spending, business investment, and government spending, leading
living paycheck to paycheck can make it difficult to build financial security and prepare for the future and can create stress and financial instability.
Online banking has become an essential part of our lives, providing us with the convenience of managing our finances from the comfort of our own homes. However, with the growing popularity of online banking come increased security risks. As a result, it is crucial that we take the necessary steps to stay safe while banking online
Kenya’s finance sector offers a lot of loan products. Secured loans are those that have collateral—an asset the debtor promises as collateral for the loan—as its backing. If the borrower defaults on the loan, the lender may seize the security to recover their losses. Collateral acts as an assurance that the loan will be returned.
Phishing scams are one of the most common ways that identity theft occurs. Criminals send emails or messages that appear to be from a legitimate source, such as a bank or government agency, asking for sensitive information such as passwords or credit card numbers.
Creating a saving culture from one’s pay slip is essential for achieving financial stability and security. A saving culture is one where individuals make saving money a regular and consistent habit. A consistent habit of saving from the small you earn will help in building a good nest for rainy days. This can be accomplished
Saving culture in personal finance is the practice of setting aside a portion of one’s income for future financial needs and goals. It is an important aspect of managing personal finances and it is encouraged in many cultures to develop a sense of financial stability and security.
It is an organization that maintains a database of credit information on individuals and businesses. The information includes credit history, loan repayment history, and other details that may be relevant to a lender when assessing a loan application.
Breaking bad spending habits is also an important step in being smart about spending. Bad spending habits can include things like impulse buying, overspending on non-essential items or not shopping around for the best deals.
Setting clear and measurable goals is crucial for creating an aggressive saving plan. This means identifying specific, time-bound, and realistic goals
