Kenya

Saccos break audit rules over KUSCCO fraud losses

Savings and Credit Cooperative Societies (Saccos) in Kenya are violating a global accounting rule that requires them to fully book losses linked to the multi-billion-shilling fraud at the Kenya Union of Savings & Credit Cooperatives (KUSCCO) from day one. Several top Saccos have only set aside partial funds to cover the expected loss of billions of shillings in deposits and shares at KUSCCO. The Institute of Certified Public Accountants of Kenya (ICPAK) has criticised this approach, stating that staggered provisions are inconsistent with standard accounting practices and that it was not consulted. However, the Sacco Societies Regulatory Authority (SASRA) has defended its decision to approve the staggered provisions, arguing that insisting on full upfront provisions would have triggered a run on cooperative deposits.

(Business Daily)

Uganda

Uganda Airlines moves closer to launching direct flights to London-Gatwick  

Uganda Airlines has taken a significant step toward expanding its international network with plans to launch direct flights to London-Gatwick. The airline has now listed London-Gatwick in its booking system, although flights are not yet available. This development indicates that all necessary procedures have been approved, and the national carrier will soon commence operations on the route.  Uganda Airlines is in talks with British authorities to secure the final approvals for the new route, which is expected to boost trade and tourism between Uganda and the United Kingdom.

(Daily Monitor)

Tanzania

Tanzania issues first-ever helium mining licence to Helium One Global

Tanzania has made a significant leap in the global helium industry with the issuance of its first-ever helium mining license to Helium One Global. The license, granted for the company’s Rukwa Helium Project, marks a key milestone in Tanzania’s growing role in the global helium market. Helium One Global submitted a comprehensive mining license (ML) application for the project, supported by a feasibility study, subsurface modelling, and a detailed commercial development plan. The license covers 480 square kilometres across the Momba and Sumbawanga districts in southern Tanzania’s Rukwa region. Helium is essential for industrial, medical, and technological applications, making this development a crucial step for both Tanzania and the global helium supply chain.

(The Citizen)

Rwanda

Rwanda asks UK for $63m over scrapped asylum deal

Rwanda is demanding a $63.62 million payment from Britain over the cancelled asylum deal after London paused some bilateral aid to the country due to the war in the Democratic Republic of Congo (DRC).British Prime Minister Keir Starmer scrapped the controversial asylum plan introduced by the previous Conservative government, which would have paid Rwanda to take in migrants who had entered Britain illegally. Incoming Interior Minister Yvette Cooper stated that the plan had already cost UK taxpayers $890 million before its cancellation.

(The Citizen)

Ethiopia

Customs demands hefty sum from airline for alleged abuse of tax privileges

The Customs Commission has instructed the Ethiopian Airlines Group to pay close to 362 million birr in back taxes and fines for the alleged improper use of construction materials imported duty-free for the construction of nearly 2,000 housing units for the carrier’s key employees. The Group has filed a complaint against the decision, and is currently caught up in a legal battle with Afro Tsion Construction Plc—the contractor that built the housing more than eight years ago. A letter from the Commission, dated January 6, 2024, and signed by Almaz Sebhat, coordinator of the post-delivery audit process, refers to a deal struck between Afro-Tsion Construction Company and the Ethiopian Airlines Group on July 17, 2015 enabling the former to import construction materials using the Group’s duty and tax privileges.

(The Reporter)

Sudan 

How Coca-Cola ingredient is smuggled from Sudan

Gum Arabic, a vital ingredient used in everything from Coca-Cola to M&M’s sweets, is increasingly being trafficked from rebel-held areas of war-torn Sudan, according to traders and industry sources. This has complicated Western companies’ efforts to insulate their supply chains from the ongoing conflict. Sudan produces around 80 percent of the world’s gum Arabic, a natural substance harvested from acacia trees. It is widely used to mix, stabilise, and thicken ingredients in mass-market products, including L’Oréal lipsticks and Nestlé pet food. The paramilitary Rapid Support Forces (RSF), which has been at war with Sudan’s national army since April 2023, seized control late last year of the main gum-harvesting regions in Kordofan and Darfur, in western Sudan.

(The East African)

Somalia

Kenya to sign trade facilitation deal with Somalia

Kenya and Somalia are in talks over a trade affiliation agreement aimed at eliminating irregular non-tariff barriers between the neighbouring countries.  Somalia joined the East African Community (EAC) in December 2023, becoming the eighth member of the regional bloc. However, its trade with Kenya continues to face multiple levies, policy shifts, and non-tariff barriers. This is largely because Somalia is still in the process of implementing key trade protocols, which are essential for aligning it with other EAC members in the regional free trade framework..

(The East African)