Kenya

KRA Faces Class Action Suit Over Freezing of VAT Returns

Over 5,000 businesses have taken KRA to court to challenge a decision that’s crippled their operations. Last month, the tax authority placed these companies on the VAT Special Table over allegations of a fraudulent VAT scheme. This move blocks them from filing returns, making transactions, or claiming refunds. KRA says the scheme, costing the government approximately Sh2.5 billion monthly, involves fake invoices and false VAT claims, similar to the notorious ‘Missing Trader Scheme.’ The crackdown has sparked outrage among the affected businesses. The case is now urgent and set for mention on June 9, 2025.

(Business Daily)

Tanzania

TRA credits ETS as Game-Changer in Tax Compliance

To tackle persistent tax evasion, the Tanzanian Revenue Authority (TRA) has adopted the Electronic Tax Stamp (ETS) system—an advanced digital tool that tracks and verifies products and taxes owed. Since its 2019 launch, ETS has proven effective in closing compliance gaps that traditional methods couldn’t address. Initially met with resistance, ETS is now widely used across various sectors, including alcohol, tobacco, soft drinks, bottled water, and cosmetics. It ensures fair competition by holding all businesses to the same tax standards and supports efforts against counterfeit goods by enabling quick verification of authenticity. Today, ETS covers a broad range of excisable products—from beverages and tobacco to cosmetics, smart cards, and even film and music media.

(Daily News)

Uganda

Sh200 Million to Be Won By Card Users In New Absa Bank Campaign

Absa Bank Uganda has launched a new customer campaign, “Play Your Cards Right,” offering cash prizes totalling sh200 million to 14 lucky winners. To participate, customers must use their Absa cards at least five times a month for purchases—each transaction increases their chances of winning. The campaign will culminate in August with two grand prize winners, one from each banking segment, each receiving sh40 million. Sam Kiyaga, Head of Alternate Channels, highlighted the initiative as part of the bank’s ongoing commitment to innovation and secure banking solutions.

(The Independent)

Ethiopia

IMF Says Ethiopia’s Central Bank Leading Transformative Reform

Ethiopia is taking bold steps to address its economic challenges and promote sustainable growth, according to the IMF. Over the past year, it liberalised foreign exchange, adopted a flexible exchange rate, switched to an interest rate-based policy, and stopped central bank financing of the government. The National Bank is also updating its laws and structure. These reforms tackle foreign exchange shortages, inflation, and fiscal risks while managing social and humanitarian issues. The IMF supports this with a $3.4 billion, four-year credit facility.

(ENA)

Rwanda

Kigali Launches Trial of Non-Stop Passenger Buses

The City of Kigali has launched a one-month trial of non-stop electric buses on the Kabuga–Nyabugogo route to ease congestion and reduce wait times at bus stops. The pilot aims to enhance the commuter experience and analyse passenger flow, particularly during peak hours. Ten electric buses are operating on the route, marking a step toward a more reliable and eco-friendly public transport system. This initiative is part of Kigali’s broader strategy to cut pollution and road congestion. If successful, the model will be expanded to other routes, and citizens are encouraged to utilise the service fully.

(The New Times)