Over time, the country’s financial landscape has witnessed tremendous growth and transformation. Amidst the laudable growth and transformation, numerous risks and weaknesses have been exposed. As a result, the Central Bank of Kenya (CBK) which holds a regulatory and supervisory role over the country’s foreign
Telcos in Kenya have adopted Internet of Things (IoT) technology through a variety of projects. Airtel has launched the ‘Always On’ solution to allow devices anywhere to stay connected after launching their eSIM, which has proven particularly useful in the transport sector for tracking cars.
While Kenyans decried the implementation of the new National Social Security Fund (NSSF) rates, Ms. Audrey Kagwiria, a Human Resource Officer, has lauded the move saying it is the best move as it will encourage Kenyans to cultivate the saving culture which many lack. In
Kenya has been facing a dollar shortage since March last year. This is an acute foreign exchange crunch, with the US dollar reserves dropping to their lowest in eight years. The Kenyan currency keeps plummeting against major global currencies and according to the Central Bank
The Kenyan government announced that it will import large quantities of rice, cooking oil, sugar, wheat and beans duty-free through the Kenya National Trade Corporation (KNTC) as part of efforts to tame the rising cost of essential commodities in Kenya. The KNTC is a State
Kenya City Hall turns to Safaricom for revenue collection Safaricom has inked a two-year deal with City Hall to offer a payment platform for Nairobi County services in a move set to lower pilferages in collecting taxes and levies. The telco says it will develop
According to the World Bank (2021), Kenya is one of sub-Saharan Africa’s fastest developing economies. The Kenyan economy’s success has been bolstered by a stable macroeconomic environment, high investor confidence, and a resilient services sector. Furthermore, the country is proud of its market-based economy and
The Select Committee on Budget and Appropriations submitted the report on the Supplementary Estimates for FY 2022/2023. In the supplementary budget, requests for reallocations and additional allocations as well as expenses covered under Article 223 of the Constitution are submitted for approval by the Parliament.
The Tax Procedures (Common Reporting Standards) Regulations, 2023 took effect on January 1, 2023. The Regulations are significant steps towards the global movement to increase tax transparency due to the increase in cross-border transactions that at times may lead to tax evasion and tax planning.
Recently, the National Assembly called for memoranda on the Supplementary budget 2022/2023 tabled before the House for approval. This budget was much awaited as President Ruto has promised to cut down government expenditure by KShs. 300 billion and work towards fiscal consolidation. Ideally, supplementary budgets
The National Treasury recently published the Draft Green Fiscal Incentives Policy Framework “the Framework” to steer Kenya’s economy onto a desired low-carbon climate-resilient green development which is critical in achieving a green economy. The Framework sets out actions and economic mechanisms to be undertaken by
Mr. Adil Khawaja (MBS) has been appointed the Chairman of the Board of Safaricom PLC, having been appointed director at the same entity earlier. Mr. Khawaja currently serves as the Managing Partner at Dentons Hamilton Harrison & Mathews, and is a leading name in the
Mr Ibrahim is the Chief Executive Officer and Co-Founder of Sunculture Kenya Limited, a climate, solar, agriculture, food systems and security, water, financing and Internet of Things firm. He is also an advisor to Ezra Venture Studio, a team and network of company builders and
Dr Too is the Director, Graduate Programs (LLM and LLD) at the Strathmore University Law School. She has also previously served as the Dean, Kabarak University Law School. In social service, Dr Too is the Chairperson of Kipteris Girls High School Board of Management. She
Kenya Users allowed to sue Safaricom over clients’ bank details access The High Court has allowed millions of Safaricom subscribers to join a class action suit against the telecoms operator over a clause in the SIM card registration rules that allows the firm
In the last few years, the global economy has been trying to cope with multiple shocks and economic uncertainties. This has been elicited by the Covid-19 pandemic, political instability, climate change induced shocks and international conflicts. These effects may not end soon and have provided
The government has, in recent days, spared no effort or platform to confirm its commitment to economic transformation as outlined in the Kenya Kwanza Manifesto. Tax compliance is one of the critical planks featuring prominently in the economic transformation agenda. President William Ruto hardly misses
A recent feature in one of the dailies painted the dire picture depicting Egerton University’s financial distress. The university’s debt burden has escalated to KShs. 9 billion, while at the same time it struggles financially to run its functions. To drive a nail into the
Kenya State bursts recurrent budget forecast by Sh81.7bn President William Ruto’s administration projects expenditure for the day-to-day running of the government is Sh81.7 billion more than what the previous regime budgeted, pointing to piling spending pressures, including salaries and wages. The Treasury has forecast recurrent
A high court ruling in Kenya this week has ordered the liquidation of two funds owned by Cytonn Real Estate – Cytonn High Yields Solution (CHYS) and the Cytonn Real Estate Project Notes (CPN) – to recover Kshs 14 billion owed to 4,000 investors. Some
The Center for International Private Enterprise (CIPE) released a policy brief on micro and small enterprises’ participation in Kenya’s digital economy. It explored challenges that MSEs face in the digital economy. The study considered four categories of digital technologies; that is connectivity; digitisation and automation
What will the New Year usher in, in emerging markets and in Kenya? From an economic perspective, the following is expected in emerging markets: GDP Growth Global economic experts appear to be in agreement that there will be an economic growth slowdown but it
PUBLIC SECTOR Appointments: Cabinet Secretary for Interior and National Administration, Kithure Kindiki, has appointed: Silas K. Sachida, Masika M. Mukuyuni, Geoffrey Wanyoike, and Moses Mucheru Hopkins M. Hoyt to be fingerprint experts. Cabinet Secretary for Lands, Public Works, Housing and Urban Development, Zachariah Njeru,
Fractional shareholding allows a person to purchase a piece, or a fraction of a share. For example, if one share costs KSh 500, a person could buy a proportion of that say for KSh 250 while another person buys the remainder for KSh 250. Each
Kenya Court stops law allowing workers to withdraw pension for home purchase A High Court has stopped the implementation of the Retirement Benefits (Mortgage Loans) (Amendment) Regulations, 2020 which allows workers to withdraw part of their pension to buy a home. Justice Anthony Ndung’u said
Meru The Governor of Meru County appoints the following to be members of the County Executive Committee: Kisii The Governor of Kisii County has appointed the following to be members of the Kisii County Executive Committee: Migori A gazette notice has been given on the
Kenya Counties with the worst loan defaulters exposed Drought-hit Marsabit, Garissa, Samburu and Isiolo counties have the highest proportion of borrowers defaulting on credit, including dues owed to shopkeepers and shylocks. The rates of default in the four counties ranged between 47 per cent and
As part of measures aimed at increasing industry liquidity and relieving the Central Bank of Kenya (CBK) from frequently having to bail out cash-strapped institutions, banks will soon be able to borrow from one another using government debt securities as collateral. The CBK implemented this
There are unique opportunities to use ICT for economic growth, productivity increase, and better service delivery. According to the International Cooperation Development 2019 report on Guidelines and Roadmap for full deployment of e-governance systems in Africa, there are two critical elements of e-governance: digital elements
The Kenya Kwanza administration is now set to roll out its first big pledge bylaunching the Hustler Fund. The launch event is set to happen on November 30, withPresident William Ruto presiding. In an administration that faced difficult issues from the first day – drought,
UASIN GISHU The Governor has gazetted the names of members of the Uasin Gishu County Executive Committee responsible for the matters respectively specified in the schedule. KITUI The Governor has established a committee to be known as the Kitui County Human Resource Audit and Rationalization
TRADE AND FINANCIAL SERVICES ROUND UP Kenya Kenya eyes 100pc shift to clean energy by 2028 Kenya will fully transition to green energy by 2028, President William Ruto has said. Speaking to CNN, he said continued reliance on fossil fuels was no longer tenable. “I
As Kenya spearheads efforts for the continent to join the African Continental Free Trade Area (AfCTFA), President William Ruto’s government has established the tone for economic diplomacy on the regional and continental fronts. In addition to four other agreements that would address non-tariff barriers like
Kenya Airways (KQ) woes came to head this week with its pilots going on strike and bringing to a halt the operations of one of the largest airlines on the continent. It was not just passengers getting stranded, but the horticultural sector also reported losses
Legislative Supplements, 2022 ● The Export Processing Zones Act—Declaration of Export Processing Zone ● The Medical Practitioners and Dentists (Inspection and Licensing) Rules, 2022 ● The Merchant Shipping (Kenyan Seafarers’ Identity Document) Regulations, 2022 ● The Capital
Environmental and societal risks have overtaken economic and geopolitical risks in terms of both likelihood and impact. Board members and the C-suite today need to have a clear and informed view of risks affecting the business environment. The business world is fraught with risks that
KENYA How budget chief plans to kill false unpaid bills The Controller of Budget (CoB) will not accept fresh payment requests from counties and entities of the national government for the year ended June, in the latest move to curb a surge in fake claims
KENYA NHIF drops bid to have top earners pay more monthly The National Hospital Insurance Fund (NHIF) has dropped its bid to have workers earning more than Sh100,000 pay more in monthly contributions, easing the financial strain on top earners and their employers. The State-backed
KENYA New President inherits half a trillion shillings of unpaid bills Kenya’s new President will inherit more than Sh500 billion owed to suppliers and contractors by ministries and State agencies in bills that have exposed many small and medium-sized businesses to closures and auctions. Latest
Recently, Kenya was selected among several countries that would initiate trading under the African Continental Free Trade Agreement (AfCFTA). The pilot phase is meant to test environmental, legal and trade policy basis for intra-African trade.Trading under the AfCFTA provides great opportunities such as a combined
The Central Bank of Kenya (CBK) recently released the 2021 Financial Stability Report which discusses developments and risks in Kenya’s economy and financial sector in the post-Covid–19 pandemic recovery phase, and details how the financial sector has remained resilient. The report outlines some of the
KENYA EABL’s Kisumu and Nairobi biomass plants almost ready East African Breweries Plc (EABL) is set to complete the setting up of its biomass-fired energy plants as it accelerates its shift to renewable energy. Diageo Plc, a majority shareholder of EABL, says the Kenya biomass
KENYA Deloitte fined for Sh2.1bn hidden hole in Chase Bank The capital markets regulator on Wednesday fined Deloitte after the audit firm failed to detect a non-existent Sh2.1 billion Chase Bank account at the Central Bank that enticed bond investors to offer the collapsed lender
KENYA Kenya inks cheap power deal with Ethiopia Kenya on Tuesday officially signed a Power Purchase contract with Ethiopia for the purchase of cheap hydroelectric power even as Nairobi nears completing the transmission line to evacuate power from its northern neighbour. Kenya is expected to
KENYA Kenya disowns port deal promises made to Dubai Kenya has disowned promises of a July tender made to Dubai Port (DP) World that would have allowed the UAE-based firm to offer a bid for development, operation and management of the country’s four ports. DP
KENYA Biden dumps Uhuru’s trade deal with Trump The Biden administration on Thursday launched a fresh strategic trade and investment partnership with Kenya, replacing an agreement ex-President Donald Trump’s government had inked with Nairobi. The US and Kenyan governments will start work within three months
KENYA Safaricom Ethiopia to start operations next month The Safaricom-led consortium aims to start operations in Ethiopia next month but will stagger the rollout of the telecommunication services across various Ethiopian cities until next year. The Safaricom consortium, which also includes British development finance agency
The set-up of the Nairobi International Financial Centre is a major milestone in Kenya’s ongoing efforts to become an Upper Middle-Income Country (UMIC). While its significance will largely become clear with time, the set-up of International Financial Centres (IFCs) generally, often are precursors for market
KENYA Treasury shuns law set to control goods prices The Treasury will not invoke the law that allows the government to control the prices of essential goods in reaction to the surge in inflation. Treasury Principal Secretary Julius Muia on Wednesday said the State will
KENYA Hoteliers, traders jostle for piece of KSh6bn rally windfall Palatial homeowners with spacious grounds in Naivasha are hurriedly setting up tents to cash in on the windfall from the World Rally Championship. With lodging spaces having been problematic during last year’s event, ingenuity is
KENYA Grain stuck at Tanzania border due to new import requirement Tanzania has imposed a new requirement on grain traders to get an export permit before shipping maize into the country, in a policy shift that has locked already bought stocks of grain by Kenyan
KENYA Kenya FDI declines Kshs 31.5 billion amid rebound in the EAC Kenya’s foreign direct investment (FDI) inflows went against a regional recovery trend in 2021 after falling by $269 million (Kshs 31.47 billion), a United Nations survey showed on Thursday. The UN Conference on
KENYA New alcohol, SIM card taxes rock Parliament A Member of Parliament affiliated to Deputy President William Ruto’s Kenya Kwanza coalition on Thursday evening proposed higher taxation on beer and a new duty on imported SIM cards in changes to the Finance Bill 2022 that
KENYA KCB first quarter profit jumps to Sh9.9 billion KCB Group net earnings grew by more than half in the first quarter ended March, helped by higher interest and non-interest income and lower loan loss provisions. The lender’s net profit in the period stood at
KENYA Kenya’s debt repayments to China shoot to Sh73.5 billion Kenya’s debt repayments towards China-funded infrastructure projects have more than doubled to a record Sh73.48 billion this financial year on the back of increased clearance of principal sums after the grace period lapsed. Expenditure data
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