1. Workers to get unemployment benefits with rise in NSSF fees

Kenyan workers will give a bigger portion of their salaries to the National Social Security Fund (NSSF) if Parliament passes a Bill seeking to directly link members’ contributions to their gross pay. NSSF, the public pension services provider, on Monday announced that it had won the support of key stakeholders for the Bill that seeks to increase contributions from the current maximum of Sh400 per month to six per cent of formal sector worker’s gross pay.

Formal sector workers contribution to NSSF is currently split equally between the employer and employee for a total of Sh400. The employer’s share is not deducted from an employee’s pay but is part of the employer’s additional payroll costs. - Business Daily

2. Ministries return to Treasury Sh275bn allocated in Budget

Various ministries failed to spend Sh275 billion allocated to them in the financial year ended June 30, 2012, raising questions on the government’s capacity to implement the ever-growing national Budget. This represents nearly a quarter of the funds allocated. The low capacity to absorb the Budget, which has now grown to Sh1.5 trillion, has been a drag on economic growth because most of the budgeted development projects go unimplemented.

Out of the original Budget estimates of Sh1.155 billion for 2011/12, only Sh895 billion was spent during the financial year —despite the allocation of more resources in the Supplementary Budget that was presented in April.

The Supplementary Budget raised the total allocations to Sh1.170 billion, but even the original Budget could not be exhausted during the fiscal year.- Business Daily

3. Jamii Bora, KCB in money transfer deal

A micro-finance institution has joined a list of financial companies seeking to tap diaspora remittances after partnering with a local bank to offer money transfer services.

As part of its strategic plan to become a medium-term bank after five years, Jamii Bora’s Chief Commercial Officer Timothy Kabiru has said that they have partnered with Kenya Commercial Bank (KCB) to introduce Western Union services in its 41 branches. - Daily Nation

 4. Barclays seeks to combine Africa businesses

Barclays on Tuesday said it was in talks about combining the majority of the British bank’s Africa operations with Absa – the lender’s African subsidiary.

“This is expected to involve the combination of Barclays interests in Botswana, Ghana, Kenya, Tanzania, Uganda, Zambia and the Indian Ocean with Absa, with Barclays Bank plc remaining as the majority shareholder of the combined African operations,” the British group said in a statement.- Capital Business

 5. Cashless payments hit Sh386bn in first half of year

Cashless transactions rose sharply in the first six months of the year as consumers increased purchases through mobile phones and debit cards. Fresh Central Bank of Kenya (CBK) data on the use of plastic and mobile money platforms between January and June shows that the value of debit card transactions rose to Sh386.6 billion from Sh211.2 billion.

Credit card transactions increased to Sh2.79 billion from Sh1.89 billion, as the value and number of transactions at the point-of-sale machines jumped to Sh46.99 billion from Sh25.88 billion and 3.8 million from three million respectively.- Business Daily

6. AAR subsidiary to offer loans via mobile phones

MEDICAL insurer AAR's subsidiary AAR credit services has unveiled a service that will allow borrowers access and repay loans via mobile phones. The new service will enable Airtel customers subscribed to the network's mobile money transfer product Airtel money, access loans through the system.

The technology platform that will facilitate the service has been developed by software firm Rapid Communications in a deal that also involves pan African bank UBA which will be the settlement partner of the money transfers made. “With this service it now makes it easier for somebody with an airtel money account to to get a loan which will also be repaid through the same account,” said AAR Credit services managing director John Kariuki.- The Star

7. Kenya to weed out illegal foreign traders

The government has ordered security agencies and local authorities to crack down on all foreigners hawking wares or working illegally in the country.
Trade Minister Moses Wetangula said all foreigners including Chinese traders who are trading illegally in Kenya should be arrested, charged and deported.

Issuing a statement on Chinese infiltration in Kenya, Mr Wetangula defended over 4000 Chinese businessmen who legitimately reside and do business in Kenya.- Business Daily

8. House team to grill CBK boss on KPCU cash