The Kenya Revenue Authority (KRA) has announced the establishment of an advanced forensic laboratory that will provide the authority the capability to access financial data from taxpayers’ computers and mobile phones, in a bid to detect tax evasion and to reduce financial fraud. The Kenyan
KENYA Manufacturers protest new KRA fuel, beer tax powers Manufacturers want the proposed powers to exempt excisable goods like fuel, beer and bottled water from annual price rises due to inflation to be taken away from Kenya Revenue Authority to the lawmakers, citing conflict of
As of 2020, the insurance penetration rate in Kenya was at 2.17 percent, down from 2.34 percent in the preceding year. Kenya has maintained a descending trajectory since 2016, when the penetration rate was at 2.78 percent. Research conducted by the Insurance Regulatory Authority (IRA)
KENYA Economy grows fastest in 11 years on easing Covid curbs Kenya’s economy rebounded in 2021 to grow at the fastest pace in 11 years on easing of Covid-19 restrictions which boosted recovery in key sectors excluding agriculture whose activities were hit by poor rainfall.
KENYA Safaricom gets Sh46bn loan for Addis licence Standard Chartered Bank Kenya was one of the major banks that lent Safaricom a total of $400 million (Sh46.3 billion) last year, helping the telecom operator pay for its Ethiopian licence. “The $400 million facilities comprised a
KENYA Kenya delays talks on 15pc cut in power bills The State is yet to open talks for a review of power purchase agreements signed over the years by Kenya Power, signalling further delay of the promised electricity bill cut for homes and businesses by
KENYA Fuel prices to hit highest in Kenya’s history without subsidy Petrol prices will from midnight increase to the highest level in Kenya’s history unless the State subsidises the rising crude oil costs, which may further stoke public outrage over the high cost of living.
The 2022 National Trade Estimate Report on Foreign Trade Barriers (NTE) is the 37th version in an annual series that highlights significant foreign barriers to US exports, US foreign direct investment, and US electronic commerce. The NTE Report identifies significant barriers, regardless of whether they
KENYA Taxpayers to deposit 50pc of disputed tax at CBK before suing KRA Firms and individuals fighting the Kenya Revenue Authority (KRA) in courts over tax demands will have to deposit 50 percent of the disputed amount in a Central Bank of Kenya (CBK) account.
KENYA Monetary Policy Committee report indicates strong economic performance amid gnawing global pressure The Monetary Policy Committee (MPC) met on March 29, 2022, against a backdrop of a changed global outlook with heightened geopolitical tensions, volatile commodity prices, the Covid-19 pandemic and measures taken by
President Uhuru Kenyatta, accompanied by ICT CS Joe Mucheru, on Thursday evening, presided over the launch of Microsoft’s premier engineering hub, the Africa Development Centre (ADC). The ADC, valued at Kshs. 3 billion ($27 million), is one of the largest software engineering facilities in Africa,
KENYA Fertiliser crisis looms on Sh5.7bn subsidy row MPs want President Uhuru Kenyatta to order the reinstatement of a Sh5.7 billion fertiliser subsidy that the Treasury has removed from the supplementary budget. The legislators have threatened to paralyse the passage of the Sh138 billion mini-budget
KENYA Banks abandon CBK’s SME mobile loans deal Four lenders selected by the Central Bank of Kenya to give low-cost mobile loans to small businesses under a programme dubbed ‘Stawi’ have abandoned the deal. The Business Daily can reveal that the platform has not issued
KENYA KRA signals peace with Keroche in Sh22bn row The Kenya Revenue Authority (KRA) has signalled concessions for Keroche Breweries after day-long negotiations with the owners of the embattled firm on Thursday over a disputed Sh22.79 billion tax bill. The taxman revealed that a deal
KENYA Sanctions block Sh10bn Kenya exports to Russia Kenya’s exports of tea, flowers, coffee and fruits to Russia have been derailed in the wake of sanctions imposed on Moscow by Western nations after its invasion of Ukraine, hurting local smallholder farmers. The blockade of the
KENYA State pushes to raise debt ceiling to Sh13 trillion in chaotic session Parliament has asked the Treasury to increase the debt ceiling to allow it to borrow Sh846 billion to plug the budget deficit in the next financial year. Majority Leader Amos Kimunya successfully
KENYA Joint Statement of the Heads of Competition Authorities Dialogue on Regulation of Digital Markets The Heads of Competition Authorities of the Egyptian Competition Authority (ECA); the Competition Authority of Kenya (CAK); the Competition Commission of Mauritius (Competition Commission); The Federal Competition and Consumer Protection
KENYA CBK tests market with digital Kenya shilling The proposed Central Bank of Kenya (CBK) digital currency will for the first time allow Kenyans to directly keep cash at the apex bank, placing it in direct competition with commercial banks for deposits. The Kenyan version
KENYA Firms slow down on hiring for first time in nine months Kenyan firms in January slashed expenditure on workers for the first time in nine months, citing a sharp fall in sales compared with December amid the Omicron threat. Findings of Stanbic Bank Kenya’s
KENYA Treasury to pay part of defaulted mobile phone loans The Treasury will guarantee mobile phone loans given to small traders in a bid to increase supply of credit under a scheme where the State will also pay part of the defaulted loans. Mobile phone-based
KENYA Banks risk Sh27bn as mortgage, matatu loan defaults jump 60pc Car and homeowners defaulted on loans totalling Sh27.8 billion in the 12 months to September last year, giving a peek into the nightmare that the two sectors have become for banks amidst the Covid-19
KENYA Oil companies to get Sh8bn for unchanged fuel prices The State will pay oil marketers an estimated Sh8.12 billion ($71.8m) for keeping fuel prices unchanged in the monthly review that will lapse on January 15. Compensation for diesel will be highest at Sh4.82 billion
In 2015, the Paris Agreement became an international pact by some of the United Nations members to put mechanisms and measures to ensure the world reaches a global peak of greenhouse gas emissions as soon as possible to achieve a climate-neutral world by mid-century. Also,
Several legislative interventions that have affected the private sector came into force in 2021. As the year draws to a close, we look back at some of these interventions and their resultant impact. The Finance Act, 2021 (the Finance Act) exempted resident persons from Digital
Businesses and the Government will have a symbiotic relationship in the use of citizens’ data under changes to the law proposed in the Huduma Bill, 2020. The Bill is among those President Uhuru Kenyatta asked Parliament to expedite and conclude in his State of the
KENYA Shilling hits all-time low of 112.5 to dollar The shilling has declined to a new all-time low of 112.5 against the dollar as importers increase demand for the greenback with the economy recovering from the impact of the pandemic. Reuters quoted the shilling at
KENYA Shilling weakens further on rising dollar demand The shilling ceded further ground to the dollar Wednesday, November 24, trading at a new low of 112.38 units amid the end of month demand for dollars from importers even as supply remained low. It has shed
KENYA CBK Takes Baby Steps Towards Launch of Digital Currency (Source: Business today) Kenya is exploring the possibility of developing and launching a central bank digital currency (CBDC) to settle cross-border payments, as it seeks to advance the shift to a cashless economy and secure transactions.
KENYA Kenya slides in credit default rules enforcement survey (Source: Business Daily) Kenya’s failure to enforce rules to reduce credit default risks locking out local and foreign investors in the financial market and reduce the country’s attractiveness for investment, a report has shown. The Absa
KENYA Auditor queries CBK law breach over board members (Source: Business Daily) Auditor-General Nancy Gathungu has once again raised concerns over Central Bank of Kenya’s (CBK) legal breach operating with seven instead of 11 directors and the absence of a second deputy governor. Ms Gathungu
KENYA Economy on path to recovery as banks record 53pc profit increase (Source: Business Daily) Pre-tax profits for banks in the seven months from January to July jumped 53.2 percent and surpassed last year’s full-year earnings, pointing to continued recovery from the Covid-19 downturn with
KENYA Controller of Budget Releases Implementation Report for June 2020 – June 2021 (Source: Office of the Controller of Budget) As required by the Constitution of Kenya and the Controller of Budget Act, the Office of the Controller of Budget made public the budget implementation
ETHIOPIA Ethiopia Attracts $3.9 billion FDI in 2020/21 Fiscal Year Foreign Direct Investment (FDI) inflow into Ethiopia reached 3.9 billion US dollars in the recently concluded 2020/21 fiscal year, says the country’s investment commission. The amount, recorded in the FY which ended on July 7,
KENYA State to take all public tenders to online platform Kenya has started the search for an online platform that will process all public tenders and linked to the Kenya Revenue Authority (KRA) in a policy shift aimed at enhancing transparency and nabbing tax cheats.
KENYA Ethiopia clears hurdle for M-Pesa expansion Ethiopian authorities told Business Daily on Thursday that the Safaricom licence will be upgraded to include mobile financial service. A consortium led by Safaricom secured the first licence, which does not have a permit for mobile financial services
KENYA THE FISCAL BUDGET FOR THE FINANCIAL YEAR 2022/2023 In pursuit of openness and accountability in financial matters as spelt out in Article 201 of the Constitution, the National Treasury has invited Government Departments and Agencies, the private sector, non-governmental organizations and individuals to submit
KENYA StanChart slashes interest rate on fresh mortgages Standard Chartered Bank of Kenya has cut the interest rate on new mortgages and waived legal and valuation fees for customers moving existing facilities from other banks in the latest bid to grow home loans. Borrowers who
KENYA Treasury exceeds July bond uptake target by Sh20bn The Treasury took up an extra Sh19.9 billion above the target of Sh60 billion in the first bond sale of the new fiscal year, taking advantage of high investor appetite for the offer that was sold
KENYA CMA blames courts for Cytonn funds debacle The Capital Markets Authority (CMA) has blamed the courts for issuing orders baring the regulator from pursuing Cytonn Group for defaulted investments in Sh13.5 billion funds. The CMA told Parliament that its hands are tied, following a
KENYA Safaricom’s Kenya staff to help set up Ethiopia unit Safaricom will second its staff to run Ethiopia operations for products and network development that will help it gain market share that is in the hands of state-owned Ethio Telecom. The telco, which alongside other
KENYA CMA cautions investors against investing in unregulated products offered or promoted by unlicensed firms or unapproved entities The Capital Markets Authority (CMA) has cautioned investors against investing through unlicensed and unapproved entities. Following numerous enquiries regarding the licensing status of the Cytonn Investment Group,
KENYA Shifting of Internet cable from Sh160bn highway path starts The government has been forced to relocate a crucial fibre optic cable to avoid internet outages when work on the Sh160 billion toll highway from Nairobi to Mau Summit begins in September. The ICT ministry
KENYA Digital lenders call for laws that will spur sector growth Digital lenders have asked legislators and the Central Bank of Kenya (CBK) to enact non-restrictive laws that will spur the growth of the sector. This comes in the wake of the Central Bank of
Sustainability is a critical component of a comprehensive plan for future success. Contrary to popular belief, sustainability is more than just environmentalism as it also recognizes the role of social and economic dimensions in delivering long term prosperity. Businesses must take active roles to demonstrate
KENYA Justice Martha Koome sworn in as Kenya’s first female Chief Justice Justice Martha Koome made history on Friday, 21st May, 2021 when she was sworn in as Kenya’s first female Chief Justice at State House, two days after the National Assembly approved her nomination
KENYA Public debt relief helps cut Kenya payments by Sh78bn Kenya projects savings of up to Sh78.17 billion after it signed debt repayment moratoriums with several rich countries, lifting pressure on its thinned domestic revenue collection. The National Treasury estimates that deferred repayments for loan
KENYA NSE hits 34-month high on Safaricom, banks The value of investor wealth on the Nairobi Securities Exchange (NSE) hit a 34-month high of Sh2.62 trillion Thursday, lifted by a rally of the share prices of Safaricom , East African Breweries (EABL) and banks. The
KENYA Ajua acquires rival in drive for Africa small enterprises Kenya-based customer experience intermediary Ajua has acquired WayaWaya, a local artificial intelligence and machine learning firm. The financial details of the transaction were not disclosed. Ajua, which assesses customer feedback, said in a statement the
KENYA Foreign investors pull Sh2 billion from NSE Foreign investors have withdrawn Sh1.98 billion from the Nairobi Securities Exchange (NSE) since January, with more than half of the takeaways coming in this month alone, highlighting the impact of profit-taking and fresh Covid-19 control measures announced
KENYA A majority of company chief executives in Kenya believe the high cost of doing business and taxation posed the biggest threat to their operations over the next 12 months. The survey found that although most business leaders projected a substantial economic rebound in the
The Business Laws (Amendment) (No. 2) Act, 2021 (“New Act”) was signed into law on 30th March 2021, thereby coming into effect straightaway. The new Act amends various laws and is part of the reforms that are aimed at facilitating ease of doing business in
KENYA Call for Comments: Draft National Insurance Policy The National Treasury is in the process of developing a National Insurance Policy which aims at strengthening the policy, legal and regulatory environment for the insurance sector in Kenya. The ultimate goal is to increase insurance penetration
KENYA Resumption of charges for transactions through Bank Specific (In House) Mobile Money Wallets The Central Bank of Kenya (CBK) today announced the resumption of charges for transactions above Ksh.100 effected through bank specific (in-house) mobile money wallets that are closely linked to the Savings
ETHIOPIA Deputy Prime Minister and Foreign Minister, Demeke Mekonnen told Ambassador of Saudi Arabia to Ethiopia Sami Jamil Abdullahi that Ethiopia is keen to resume the negotiation under the leadership of the new chairperson of AU President Felix-Antoine Tshisekedi of the Democratic Republic of the
KENYA Payment of external debt nearly doubles in 6 months to Dec Repayment of principal sums owed to external lenders for six months through December 2020 nearly doubled in the lead-up to Treasury’s U-turn in taking debt relief offer and the push to create a
KENYA City Hall seeks new terms for Sh4.5 billion KCB loan City Hall has revealed plans to restructure a Sh4.45 billion KCB Group loan in a bid to end a legal showdown with the lender and avoid property auction. The county said that it will
KENYA Tech firm to set up regional data hub in Nairobi Kenya’s data centre market has a new suitor after Europe-based IXAfrica launched plans to build its ‘Africa Campus’ in Nairobi. IXAfrica chairman Guy Willner said they had chosen Nairobi as their regional expansion Launchpad
The World Bank has named Senegalese national Makhtar Diop as the new managing director of its private sector arm, the International Finance Corporation effective March 1 2021. He becomes the first African to head the institution. Mr Diop, a former Minister of Economy and Finance in the West African country, is currently
serving as World Bank’s vice president for infrastructure, overseeing the lender’s work across energy, transport, and digital
KENYA Safaricom biggest winner in Sh1.6bn network upgrade Giant telecommunications firm, Safaricom is among five firms that have been awarded a Sh1.57 billion deal to build base transceiver stations to boost network connectivity in 101 remote sub-locations across the country. The telcos will set up
Introduction The Virtual Opening of The Africa Business forum was held on the margins of the 34th Ordinary Session of the African Union Assembly Of Heads Of State And Government on 8th February 2021 at 14.45 hrs to 16.00hrs East Africa Time. The Forum was
KENYA Jambo Pay obtains licence to operate MVNO service Online payments company Jambo Pay, owned by Web Tribe, has obtained a licence to operate an MVNO service, and says that its initial services will include IoT services such as ‘smart communications networks which will enable
Taxing businesses on profits as
it has always been means
that loss making entities
comfortably escape the
taxman’s noose. Bear
in mind that the onus of
determining profits or losses
rests on the taxpayer.
KENYA Monetary Policy Committee (MPC) retain the Central Bank Rate (CBR) at 7 % The Monetary Policy Committee (MPC) met on January 27, 2021and assessed the outcomes of its policy measures deployed since March 2020 to mitigate the adverse economic effects and financial disruptions from
KENYA Banks sucked into Sh24.5bn State stipends row The State Department for Social Protection has failed to account for Sh24.5billion stipends disbursed to the elderly, the disabled and orphans across the country, raising questions on whether the amount reached its intended beneficiaries. Auditor-General Nancy Gathungu
KENYA Anne Mwenda sworn-in as Nairobi deputy governor Anne Mwenda was on Friday sworn-in as Nairobi County’s third deputy governor following a swift confirmation process by ward representatives earlier in the day. The county assembly accepted a report from the vetting committee approving Ms Mwenda’s
KENYA Expiry of Emergency Measures to Facilitate Mobile Money Transactions and the Introduction of Principles to Guide Pricing On December 17, 2020 the Central Bank of Kenya (CBK) after consulting with Payment Service Providers (PSPs) announced the expiry of emergency measures to facilitate mobile money
The Business Laws (Amendment) Bill (No.2), 2020 seeks to make various amendments to various statutes highlighted as follows: Clause 2 of the Bill seeks to amend the Law of Contract Act, Cap 23 to eliminate the requirement of a company seal in execution of documents
KENYA Treasury bonds trade falls as CBK mops up shilling The value of bonds traded in the secondary market at the Nairobi Securities Exchange fell by a fifth in November compared to October, as investors turned their sights to new government debt issues amid reduced
KENYA The return of Pre-COVID taxes on VAT and Income Tax The Office of the Cabinet Secretary for Treasury and Planning has released a press statement today stating that the preCOVID tax rates on VAT and income tax are back from 1st January 2021. Corporate
KENYA KCB Group PLC and Atlas Mara Limited Sign Acquisition Deal for Rwanda, Tanzania Banking Businesses.The Proposed transaction will see KCB acquire Banque Populaire du Rwanda Plc (BPR) and African Banking Corporation Tanzania (BancABC). KCB Group Plc (KCB) and Atlas Mara (ATMA) have signed a
KENYA The Public Sector Hearings for FY 2021/22 and Medium -Term period The National Treasury and Planning has organized the Public Sector Hearings for FY 2021/22 and Medium-Term period on 25th – 27th November, 2020 at KICC Amphitheatre hall starting at 8:30 am. TIME SECTOR/PRESENTATIONDAY
KENYA Kenya set to shift to e-visa services in 2021 The Kenyan government on Tuesday, 3 November announced a shift to e-visa services effective 1 January 2021. The Department of Immigration Services said passengers from countries requiring a visa to enter Kenya are expected to
KENYA Petrol, electricity prices to rise on new levy plan Consumer prices of petroleum and electricity are set to climb if Parliament approves a new taxation formula aimed at boosting the finances of the Energy Petroleum Regulatory Authority (EPRA). The formula proposed by the Energy
Ideally, removing the non-tariff barriers that remain the biggest hindrance to continental trade can foster regional integration, which must play a key role in the crisis recovery strategies in Africa.
KENYA NBK gets relief in Sh500m debt tussle with Ecobank The National Bank of Kenya (NBK) has won a temporary reprieve after the Court of Appeal halted a demand for payment of over Sh500 million to Ecobank arising from a financing deal linked to the
Article 132 of the Constitution and House Standing Orders obligate the President to address a joint sitting of the Houses on matters that touch on national values.
the President chaired an extraordinary session of Cabinet where the Head of State received the Report on the State of National Security, Nationhood and Territorial Integrity. The Report covers a wide range of issues, including national cyber projects, geospatial surveys and airborne geophysical projects, the National Integrated Information Management System (NIIMS) Programme – Huduma Namba initiative, and the National Security Industrialization Project.
Although Kenya may not feature as one of the top ten importers for the US market, the textile and apparel industry has the potential to alleviate the unemployment crisis in the country
“the Cabinet considered the prescriptions and directives issued by the National Security Advisory Committee (NSAC) regarding the Preservation of Public Order and Security in the Conduct of Public Gatherings and Processions, Media Reporting and Responsible Conduct of Persons using Social Media.”
KENYA Suspension of the listing of negative credit information for borrowers expires The Central Bank of Kenya (CBK) on April 14, 2020, announced a six-month suspension of the listing of negative credit information with credit reference bureaus (CRBs) for borrowers whose loans were performing previously
COMESA is the Common Market for Eastern and Southern Africa. In 2018, they agreed to establish a Digital Free Trade Area (DFTA). The initiative that upon inception was expected to create a $17.2 billion-worth market for member states is an online platform for trade facilitation
The Ministry of Finance on Wednesday revealed that it will issue invitation for bid to international telecom companies to award two bidders that take over 40 percent stakes of Ethio Telecom in October 2020. This was said after the ministry held a consultative meeting with private, financial and IT sectors to get their feedback on the privatization process, particularly in the telecom sector during the past two years. The bid document for the two new licenses will allow the winners to build, own and operate telecommunications networks.
EAST AFRICA The East Africa Community (EAC) Secretariat and its partner states held a virtual roll out event to mark the technical completion and development of the Regional Electronic Cargo and Driver Tracking System (RECDTS). RECDTS is designed as a mobile phone application and will
By Stephen Kyande
Kenya is one of the jurisdictions in the world that operate a self-assessment tax administration
regime. Primarily, this kind of regime is purely based on trust where the taxman trusts that the
declarations of income made by taxpayers are a true reflection of the income generated. At a
secondary level, the taxman may issue an assessment as well as other remedial measures
stipulated in the law in case there is suspicion of under-declaration of income by a given
ETHIOPIA President Sahlework Zewde called on all Ethiopians to continue their support to successfully realize the Grand Ethiopian Renaissance Dam (GERD) in the New Year. China will continue providing support for Ethiopia’s development endeavors as per China’s Ambassador Tan Jian. The ambassador, who attended the
Banking on technological advances in standards
application, KEBS has also committed to supporting
MSMEs to adopt ICT and adapt to the digital
revolution by exploiting tech opportunities such as
cloud computing and data analytics, among others.
AFRICA Akinwumi Adesina Re-elected as President of the AfDB Group Dr. Akinwumi Adesina (PhD) has been re-elected to serve a second five year term as President of the African Development Bank Group on Thursday, August 27, 2020 by the Board of Governors of the Bank.
Introduction With the COVID-19 pandemic here to stay, corporations are now forced to operate digitally. Early in the year the Capital Markets Authority released a note stating that publicly listed companies are allowed to hold virtual meetings since they cannot host their statutory meetings in
ETHIOPIA Ethiopia Airlines and Ethiopian Chefs Association have signed a Memorandum of Understanding that enables them to work on catering service and food tourism development. Ministry of Finance disclosed that Ethiopia has finalized preparations to commence the first phase of public-private partnership program by launching
Kenya is currently one of Africa’s fastest growing ICT markets where ICTs have increased productivity, accelerated processes, increased human resource digital skills and contributed to improved standards of living for Kenyans.
KENYA Safaricom’s dollar demand tanks shilling to record low The shilling has weakened to a record low of 108.45 units against the dollar, erasing gains made last week, with traders linking this on demand for the US currency from Safaricom ahead of Sh56.09 billion dividends