Good morning! Let’s dive into today's top stories from Business Daily.

Housing levy, SHIF slash take-home pay to 55pc

Increased Deductions: The implementation of the Social Health Insurance Fund (SHIF) and the housing levy has raised statutory deductions from workers' gross pay to between 40% and 45%, significantly reducing disposable income.

Economic Impact: The Federation of Kenya Employers (FKE) reports that this reduction in disposable income has led to a 15% to 20% decline in sales across sectors like retail and fast-moving consumer goods, adversely affecting living standards and economic demand.

Significant Growth in Bancassurance: Bancassurance premiums in Kenya have surged by 79.4% to KSh 35 billion, driven by a 58.1% increase in credit life premiums to KSh 10.37 billion and an 81% rise in motor insurance premiums to KSh 5.995 billion. This growth is largely due to banks requiring insurance coverage for loans, including provisions for death, disability, and retrenchment.

Life Insurance Outpaces Non-Life: Within the bancassurance sector, life insurance premiums have expanded by 88.6%, surpassing the 72.2% growth in non-life insurance. This trend indicates a growing consumer preference for life insurance products, reflecting an increased demand for financial security and long-term savings solutions.

KCB Group beats Equity with Sh44.5bn nine-month profit

Profit Surge: KCB Group's net profit rose 48.7% to KSh 44.5 billion in the first nine months of 2024, surpassing Equity Group's KSh 39.3 billion, driven by a 23.9% increase in net interest income and an 18.3% rise in non-interest income from foreign exchange gains and DR Congo operations.

Regional Impact: Regional diversification fueled 36.6% of KCB's profits, with KCB Bank Kenya posting a 32.4% profit increase and the National Bank of Kenya rebounding to KSh 1.19 billion net profit, highlighting the success of KCB's expansion strategy.

Court stops arrest, questioning of Stanbic CEO Joshua Oigara, staff in airline row

Court Intervention: The High Court has prohibited the Banking Fraud Investigations Unit from questioning or arresting Stanbic Bank CEO Joshua Oigara and other employees regarding a dispute with Air Afrik Aviation Ltd, pending the resolution of the bank's petition.

Pending Legal Matters: Stanbic Bank contends that the Directorate of Criminal Investigations is attempting to investigate issues already under High Court consideration, arguing that this could interfere with the bank's defense in the ongoing civil case.

Revenue Shortfall: Kenya's revenue for the first four months of 2024/25 fell short by KSh 42.9 billion, with VAT contributing the largest deficit of KSh 21.7 billion.

Recent Improvement: KRA exceeded its October target, collecting KSh 208 billion against a KSh 201 billion goal, recovering from earlier monthly shortfalls.

Margaret Ingesa: Kenyan cruise ship chef roaming the high seas

Passion-Driven Career: Margaret Ingesa, a Kenyan chef, has seamlessly combined her love for cooking and travel by working on cruise ships, allowing her to explore the world while pursuing her culinary passion.

Challenging Yet Rewarding: Despite the demanding nature of her role, which includes long hours and adapting to diverse culinary preferences, Ingesa finds fulfillment in delivering exceptional dining experiences to passengers from various cultural backgrounds.

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Five More Top Stories

Senators, MPs reach deal on allocation to counties:

Increased Funding: Counties will receive KSh 387 billion for 2024/25, including KSh 2 billion to address inflation.

Legislative Action: Leaders pledged to fast-track the Revenue Bill to avoid county service disruptions before December 1, 2024. — Read the full article here

Official receiver to lease out Cytonn Kilimani property:

Leasing Kilimani Land: Cytonn's 3.99-acre Kilimani property is being leased for one year to recover creditor funds after court-ordered liquidation.

Financial Goals: The lease aims to cover costs, including Sh100,000 monthly security expenses, for properties valued at Sh1.4 billion in 2021. — Read the full article here

Kenya to go after foreign data privacy violators:

International Cooperation: Kenya seeks MLA agreements to enforce data laws against foreign companies.

Accountability for Multinationals: ODPC targets firms storing Kenyan data abroad to ensure compliance with local privacy laws. — Read the full article here

Enhancing aid effectiveness in E.Africa:

Priority Alignment: Aid in East Africa should align with recipient countries' needs, not donors' geopolitical agendas, to ensure sustainable growth.

Donor Coordination: Better collaboration among donors can reduce overlaps and administrative burdens, improving aid efficiency. — Read the full article here

How to tell if you are the toxic manager in your organization:

Assess Leadership: Managers should identify toxic behaviors like fear, favoritism, or poor communication that harm team morale.

Foster Openness: Build a supportive workplace where employees feel safe, encouraging innovation and collaboration. — Read the full article here

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