Organisations that give loans to employees at below market rates are taxed for the differential in what is commonly known as fringe benefits. In my case, I am talking about the general population having access to bank loans at 14% market rates.
Does this apply to government employees?
Doesn’t apply to government since government is not a corporation.
Extract from tax act
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Seriously? My mom has ‘shares’ in FEP
Pole
There are these guys that are always on Capital Fm called Optiven that are selling shambas and gated communities in some places. The shiny-eyed guy that comes to discuss the projects is very charismatic, but there is something about the whole thing that just tells me guys are being played. they may be selling genuine plots but something about it doesnt seem right to me.
www.optiven.co.ke
the home page is full of shining eyes 
PSC ni gava ama what would you call NOCK, KRA and the likes? cz kuna rate fulani ya FBT that KRA gives I think quarterly inawekwa kwa system to calculate FBT for this organizations.
This is how they marketed themselves when they were starting:
In 2011, you invest Kshs 345,000 and get 1 share
Between 2011 and 2013, they were to engage in business that would see the value of the share rise to Kshs 1 million
In October 2013, they would split the shares by 1 million so that instead of having 1 share for 1 million, you have 1 million shares each valued at 1 bob.
After share split, they were to do a Private Placement Offer where they were to sell the shares at Kshs 10 bob. So this means that you would now be worth Kshs 10 million (1 million shares x 10 bob)
In 2016, they were to do another share split where the shares were to be split 20 times. This means instead of having 1 million shares valued at 10 bob you would have 10 million shares each valued at 1 bob
After the share split, they were to offer IPO and assumed at a price of 20 bob per share. Therefore, by end of 2016 you would be worth Kshs 200 million (10 million shares x 20 bob)
In summary, they were promising that if you invest with them Kshs 345,000 in 2010, you would have Kshs 200 million in 2016
That sounds like trouble
Hata Ponzi afadhali!
And what is CMA doing?
That’s why this FEP is popular abroad. Unajua those guyz abroad some stay for 10, 15 or 20 years without coming so they aren’t really in touch with the happenings in Kenya and easy to convince them.
My guess is that since KRA and PSC are government insttitutions, they are not subject to the Fringe Benefits Tax. NOCK on the other hand is a parastatal kwa ivo they are taxed.
Many are stuck out there because they have no status, so they work hard and stay underwater. Easy prey when they have dreams of investing in .ke and settling back home someday.
Thats not all, the investors were promised that by 2015 FEP would own a big bank, a media station, a chain of high end star hotels and a number of high end schools
This is a red flag in today’s money market because if their Biz plan is credible they should have been able to raise funds from the numerous VCs and investors in the market and not scurrying and dirtying themselves going for the small individual investors
When you promise people a 5000% ROI in 6yrs you can tell them anything I guess
This isn’t even 5000% ROI, It is a whooping 58,000%:D:D:D