CS John Mbadi Announces New Policies Targeting Govt Employees and Parents 

Hello and welcome to the Money News Roundup. Today, we’re covering the Unified Human Resource Management System set to be implemented in July for all government employees, in addition to proposed changes for exam fees.

New Payroll System for Govt Employees 

Treasury Cabinet Secretary John Mbadi announced the rollout of the Unified Human Resource Management System, which is aimed at streamlining the payroll for all government employees.

Speaking during the presentation of the Budget 2025/2026 in Parliament on Thursday, June 12, Mbadi stated that the new system would be implemented before the end of July.

The main aim of the system is to eliminate fraud in payroll, especially ghost workers.

“The Government will fully implement the Unified Human Resource Management System across all Public Sector entities by July 2025. This initiative is part of broader efforts to enhance Public Sector efficiency, improve management of the wage bill, and ensure the effective utilization of public funds,” he stated.

Additionally, SRC is set to review the allowances for government employees in light of the current economic times.

“To this end, the Salaries and Remuneration Commission will progressively review allowances and benefits in the future Collective Bargaining Agreements, aligning them to the Allowances Policy Guidelines for the Public Service,” the CS added. 

Exam Fees Changes 

Despite committing to pay exam fees for the 2025 candidates, the CS expressed that the government was considering making changes to the current subsidy programme.

In the proposed changes, the government is seeking to pay exam fees for students based on their family background. Therefore, some parents could pay extra fees if the system is adopted.

“A key consideration is the merits of public funding of examination fees for all 62 primary and secondary school candidates, including those from well-off households, as opposed to targeting the vulnerable students in our schools,” the CS announced.

“To this end, the National Treasury is in consultations with the Ministry of Education on how best to achieve this at a minimal cost possible, including evaluating possible cost-sharing mechanisms.”

Ruto Creates 7 New State Departments 

As detailed by Citizen Digital, President William Ruto’s government formalized the creation of 7 new state departments following the recent appointments of Principal Secretaries to government.

Through Executive Order No. 1 of 2025, the government created the State Department for Aviation and Aerospace Development, the State Department for Children Services, and the State Department for Justice, Human Rights, and Constitutional Affairs.

Also created were the State Department for National Government Coordination, the State Department for Science, Research and Innovation, the State Department for Public Investments and Assets Management, and the State Department for Special Programmes.

“The organisation of the Executive Office of the President, including all offices thereunder, is as set out in the Order. The Executive Order does not, in any way, vary, impede, or invalidate the ongoing reforms of State Corporations,” read the executive order in part.

‍Kenyans Opt for eCitizen to File Nil Returns 

Over 12 million Kenyans have filed nil tax returns via the eCitizen platform ahead of the June 30 deadline.

As reported by the Business Daily, more Kenyans were preferring to fill the returns on the eCitizen platform because it was much easier in comparison with the iTax platform.

According to KRA Deputy Commissioner for Taxpayer Services Patience Njau, only 2 million taxpayers had filed the nil return on the iTax platform.

The new method of filing nil returns was introduced this year to enhance compliance among tax players.

Also Read: How to File Nil Tax Returns on KRA's iTax 2025

‍CBK’s Update on New Loan Pricing Model

The Central Bank of Kenya (CBK) Governor, Kamau Thugge, has revealed that the revised risk-based pricing model will be rolled out in due course following public participation that was done.

In a report by People Daily, it was revealed that CBK was consolidating the responses received before the new model is unveiled. The new model is aimed at ensuring Kenyans have access to affordable loans.

Thugge also urged banks to reduce their lending rates following the reduction of the Central Bank Rate (CBR) from 10 per cent to 9.75 per cent.

"We would want the policy rates to be transmitted as quickly as possible to the lending rate. There has been a lag in reducing interest rates, even when we've cut the CBR. That's what we're trying to address,” he stated.

Car Importers Issue Warning Over New CRSP List

The Car Importers Association of Kenya (CIAK) has warned the government over a potential decline in revenue collection following the new Current Retail Selling Price (CRSP) list by the Kenya Revenue Authority (KRA).

According to the association, as reported in the Standard,  the new valuation was going to increase the cost of vehicles that are mostly bought by Kenyans in the low and middle classes.

The association also lamented that the taxman did not consult stakeholders when coming up with the valuations.

“We have been contesting the consistent rise of valuation rates since 2018, and we’ve been in and out of court with KRA over this matter. Still, the rates were raised, and this has frustrated us,” Peter Otieno, national chairman of CIAK, stated.

Also Read: KRA Explains Why Some Car Import Taxes Will Triple Beginning July 1