Kenya

Treasury turns up heat on KRA over leaky revenue systems

 The Kenya Revenue Authority (KRA) has come under scrutiny over its ability to plug tax leaks while failing to improve its systems and curb corruption. The Cabinet Secretary for the National Treasury, John Mbadi, stated that he would only support a 30% increase of revenue to KRA in the next budgetary allocation. The additional monies would be tailored towards the payment of staff salaries to discourage them from engaging in corruption. The CS also called into question the two KRA systems, I-Tax and Integrated Customs Management, with the former being outdated and the latter not working. Speaking at the KRA Summit 2024, Mbadi called for KRA and its officers to embrace technology-driven solutions that facilitate trade and enhance domestic resource mobilisation. Issues of corruption have plagued the KRA, and their impact on the economy would lead to loss of revenue, hinder development efforts and erode public trust in government institutions.  Mbadi acknowledged that there is poor tax visibility in the collection of VAT. Through the eTIMS, KRA will be able to enhance revenue collection of VAT, especially from professionals who have been making large amounts of money while evading tax systems. 

(Business Daily)

Uganda 

Ugandans to feel the brunt of high sugar prices as Kenya allows regional imports

The Uganda National Sugarcane Growers Association has called for increased sugarcane prices from Kshs 120,000 per tonne to Kshs 200,000 per tonne. This is following Kenya’s lifting of its ban on importation from Uganda. The sudden lift has led to a surge in sugar market prices influenced by Kenya. The Chairperson for the Uganda National Sugarcane Growers Association, Isa Budhugo, alleged that in August, 50 kilogrammes cost Kshs 120,000 compared to its current price for the same weight being Kshs 200,000. He further stated that the price surge is due to increased demand for sugar. Kenya issued a ban because they indicated that there was capacity for local production. Despite the Kenyan government denying this position, stating that the ban was not against Uganda but was to allow exclusive trade between EAC member states.  The National Growers Association believes that the ban violated the EAC Market Protocol in which party states’ markets are integrated into one. To allow for free movement of capital, labour, goods and services.  The Greater Mukono Sugarcane Outgrowers Cooperative Society Limited has called for value addition of sugarcane to get a wide range of products and increase income for farmers. 

(Monitor) 

Tanzania

CRDB to empower farmers with digital financial solutions

The CRDB Bank is taking steps to digitise farmers’ activities to enhance their access to financial services and empower them to manage their agricultural operations more effectively. CRDB joined the Mobilising Access to Digital Economy (MADE) Alliance, an initiative that Master Card and the African Development Bank have spearheaded. CRDB Bank’s CEO, Abdulmajid Nsekela, stated that the lender’s participation in this initiative would expand Tanzania’s farmers’ access to financial services through digital platforms. 

(The Citizen)

Rwanda 

Rwanda initiates a bill to ease insolvency for MSMEs 

The Rwandan government has submitted to its Parliament a draft bill on simplified insolvency for micro and small enterprises (MSEs). The bill allows MSEs to have other options to recover from financial difficulties. MSEs are key players in Rwanda’s economy, contributing to about 55% of the country’s GDP and employing about 41% of the Rwandan population. The expected scope of application of this law is the financial distress of a debtor, insolvency proceedings for a debtor and cross-border insolvency for a debtor. If passed, it aims to create user-friendly and cost-effective insolvency tailored to Rwandan MSEs.  It has been observed that the draft bill meets the recommendations set out by the World Bank Group and the United Nations Commission on International Trade Law.  The Rwanda Development Board, in its justification of the bill before Parliamentarians, stated that the main issue is that many traders are unable to go to court to be assisted with their insolvency matters.  They further claim that once the law is passed, they will move in to help MSEs by providing small and medium investors to provide financial assistance. 

(The New Times)

Ethiopia

Ministry opens logistics sector to full foreign ownership

The Ministry of Transport and Logistics has fully opened the transport industry to foreign investors. This has been made possible by a major shift in the policy that has allowed foreign investment to boost development in the sector. The policy shift allows for the 100% foreign ownership of logistic companies operating in Ethiopia. This move follows macroeconomic reforms made two months prior and is a departure from the previous legislation that limited foreign ownership to about 49% stake in joint ventures with domestic firms.  According to the ministry, opening up the sector to external competition can help address inefficiencies among freight operators, leading to reduced costs and improved service times.  

(Addis Fortune)

Somalia

Premier Bank launches ‘Tap2Pay NFC wearables’ in Somalia, a first in the country

Premier Bank has launched Tap2Pay NFC wearables payment solutions as a first in Somalia. The new technology brings a promise of secure, contactless payment to the region, providing users with an effortless way of making payments. Near Field Communication (NFC) technology is being incorporated into everyday accessories such as glasses, rings, smartwatch straps, and phone cases. These wearables enable customers to make swift payments by tapping the NFCs with other compatible point-of-sale terminals. The Tap2Pay solutions are groundbreaking in Somalia’s financial sector and aligned with global advancements in technology and how payments are made. 

(Nation)