Welcome to The Beacon, the official, monthly e-newsletter on matters Human Resource, coaching and mentorship developed by Rise & Learn Global. Just as our name suggests, we hope that these monthly nuggets will power your growth and encourage you to leave behind a better world than you find. In this edition, we have taken precaution to make the content snackable but still of value to you. This inaugural edition is about resilience, essentially, how we can build the muscle to always bounce back, despite the changing times and the challenges that come with it.

Focus of the Month: Key Issues for Human Resources Practitioners in the Finance Bill 2023

The Finance Bill (2023) is still on free following court orders halting its implementation. But, while we await the outcome of this process, have you looked at it to see what HR practitioners will be required to do? We highlight some of the areas that may call for your attention:

1. New PAYE Tax bands –The main change here is the increase of personal taxes from the current maximum of 30% to 35% which will apply to employees earning more than Ksh 500,000 per month. Below is a summary of the new tax bands on PAYE for individuals:

On the first Ksh 288,000 – 10%
On the next Ksh 100,000 – 25%
On all income over Ksh 5,612,000 – 30%
On all income over Ksh 6,000,000 – 35%

Proposed Effective Date: 1st July 2023

2. Club membership & subscription fees – Club entrance and subscription fees paid by an employer for n employee may be eligible as deductible expenses on the employer’s income. This means that the expenditure can either by taxed on the employee, or the employer can bear the tax burden by not considering the expense when calculating the employer’s taxable income for corporation tax purposes.
Proposed Effective Date: 1st July 2023

3. Tax Relief on post-retirement medical fund contributions – this is welcome news for individuals contributing to such a fund. The value of the proposed relief is 15% of contribution capped at Ksh 60,000 per year. HR may encourage their employees to enroll and make contributions towards post-retirement medical funds so they can save adequately to access good, affordable healthcare and medical benefits after retirement
Proposed Effective Date: 1st January 2024

4. Investment income from a post-retirement medical fund (whether or not the fund is part of a retirement benefits scheme) is tax exempt.

5. Exclusion of Mileage Claims from Tax – The bill proposes a tax-free mileage reimbursement for employees traveling on official duties, based on Automobile Association (AA) of Kenya’s approved standard mileage rate. However, the Ksh 2,000 per day per diem (expenses reimbursement) has been retained in the current bill and is not taxable.

6. Employee Share Ownership (ESOP) benefits by Startups – Check the bill for the definition of a startup incorporated in Kenya. The taxation of the benefit from the shares granted to a worker at an eligible startup would be postponed to be paid out within 30 days of the earlier of:

The expiry of 5 years from the year the option was granted
The disposal of the shares by the employee or
The date the employee ceases to be an employee of the eligible startup. The good news is that the employee who receives ESOP shares does have to pay taxes on the employment benefit right away, before realizing gains from the shares.

Proposed Effective Date: 1st July 2023

7. Affordable Housing Levy – Critical to note is that this levy is based on gross and not basic salary. Both the employer and employee will each contribute 1.5% of the gross salary per month and remitted by the 9th of every month as with other statutory payments.

If the courts uphold implementation of the Act, as HR Practitioners you need to assist your business to computing the net effects of the changes on cost of employment and overall budget. Also, it poses a challenge to you to rethink employee value proposition where salary increase to cushion the income reduction is not an option in the short or medium term.

Quick Updates of great interest to you:

1. InMySteps – Changing Lives, Impacting Young People

InMySteps Internship & Mentorship program is an initiative by Rise & Learn Global that seeks to empower young people by helping them to get access to opportunities to get practical experience. It is a call to everyone who has walked the professional journey or is in a position to influence/ support to extend their hand and pull young professionals up; it is a call to NURTURE. The InMySteps program drives change by bringing together an ecosystem of employers, interns, coaches, mentors and donors The program, which is has been running for 2 years now, took up the 3^rd Cohort of 55 interns who are now at placement and mentorship stage. The internship program takes a minimum of 3 months during which time the interns walk with a mentor and undergo various courses to help in their career launch. The program sources for internship slots, recruits interns competitively and trains them to be future-ready. You can read more about this on https://inmysteps.riseandlearn.ke/ or watch the testimonial of the program on https://www.youtube.com/watch?v=nTKUcLQq6KE  . Please also view the list of our mentors so far https://inmysteps.riseandlearn.ke/mentors

Before launching the initiative, we commissioned research on the state of Internships in Kenya. You can access the report: https://inmysteps.riseandlearn.ke/thank-you/
We are still looking for more partner organizations to place the interns in for a period of 3 months. We are also looking for mentors to hold the hands of those who qualify to enter the program.
To donate an internship slot or offer yourself as a mentor, please drop an email to Inmysteps@riseandlearn.ke.

2 Rise & Learn Calendar: Read about upcoming events and how to participate!

From the horse’s mouth: We speak to Mr. Lucas Marang’a, on Coaching, leadership, and a lifetime of learning:

Who is Lucas?
Lucas is a portfolio person, meaning he is made up of more than one thing. He is a transition coach, helping people successfully transition from one season of their lives to another so that they can find and live meaningful lives. He is also a storyteller using his writing and moderation skills to capture the highs and lows of the human spirit and encourage folks to live authentically. Lucas is also an aspiring board member seeking to use his leadership skills to improve people’s lives and communities. Lastly, he is an award-winning nature photographer who desires to use his passion for nature photography to promote conservation and tourism.

What does resilience mean to you as a coach/leader?
Resilience to me is staying power. How much (and for how long) can I withstand a difficult situation for the greater good? As a coach, I often feel inadequate. I struggle with imposter syndrome. So, resilience for me is to keep coaching while seeking a deeper self-awareness and for that to fuel continuous improvement. My struggles may be what will reveal the breakthrough for my client. Showing up even when feeling inadequate, while striving to be the best coach is what resilience looks like for me. And the same applies to leadership.

How do you stay resilient when you encounter changes in your life?
Everyone must have something to hang on to. Even ships have an anchor that holds them in place when the sea is rough. My anchor has been twofold: my family and the fact that my life must count for something big. I try to live urgently. In fact, my personal hashtag is #onlyBIGthingsgoingforward. So, whenever I’m at major crossroads in my life or down in the dumps, I remind myself of my anchor. I look at my kids and somehow get the courage to move even when sometimes I don’t know where I am moving to. The miracle is often in the moving, so motion is a form of resilience for me. God above is also a good companion on the journey we call life. He administers resilience tablets when needed and just in the right dosage.

What are you currently reading?
I’m reading three books. I’m a portfolio guy remember (laughs)…

• Don’t Drop the Mic by T.D. Jakes: because speaking is my gift and I want to keep polishing it.
• Beyond Halftime by Bob Buford: because I want to maximize the second half of my life.
• Beyond the shadows of my dream. A biography by Dr Martin Oduor Otieno CBS: simply because Martin lives the kind of success, I envision for myself. He’s even taller than me so we can say I look up to him (smiles)