Author: David Indeje

Kenyan shilling strengthened against the US dollar closing at  KSh 108.79 per US Dollar on December 24, compared to KSh 111.59 on December 17. The Central Bank of Kenya (CBK) in its weekly bulletin said this was attributed to inflows in various sectors of the economy. The Kenyan currency has remained relatively stable supported by the improving diaspora remittance of which the cumulative inflows in the 12 months to November totalled USD 3,045 million compared to USD 2,790 million in the 12 months to November 2019. High levels of forex reserves, currently at USD 7,788 million (4.78 months of import cover)…

Shoe and leather accessories retailer, Nairobi Business Ventures Limited (NBV), has been ordered by a court to pay KSh5.2 million to Greenhills Investment Limited or face liquidation. Nairobi’s Commercial and Tax Division Court issued the insolvency notice to be paid within 21 days. The notice issued on December 2, 2020. “Take notice that within 21 days after service of this notice on you, excluding the day of such service, you shall pay to Greenhills Investment Limited the sum of Sh5,238,436.70 (includes rent and interest to date) November 19, 2020, claimed by Greenhills Investment Limited,” the insolvency notice E068 of 2020…

Kenya’s parliament approved on Tuesday approved Treasury’s decision to revert taxes to Pre- Covid levels in January 2021  to manage the growing revenue deficit. The government in March temporarily reduced taxes aimed at offering a reprieve for businesses and consumers who had been adversely affected by the pandemic. In this case,  income tax was reduced by 5.00% to 25.00% while VAT was cut by 2.00% to 14.00%. “Pursuant of provisions of sections 6 and 67 of the Value Added Tax Act 0f 2013 approves the Value Added Tax Amendment of the rate of tax 2020, will as many of that opinion…

Absa Bank Kenya Plc has issued a profit warning saying its net profit for the 2020 full year. The listed lender cites increased impairment provisions due to the Covid-19 pandemic. “Trends and forecasts show that the rate of impairment is increasing due to the delayed loans repayments and potential additional stress due to COVID-19 after-effects,” Absa notified its investors. The bank’s asset quality deteriorated, with the NPL ratio increased to 7.6% in Q3’2020, from 6.8% in Q3’2019, due to the faster 20.8% growth in gross NPLs, which outpaced the 7.3% growth in gross loans. “Notably, on a y/y basis, the bank’s…

The National Treasury eyes more money from the domestic market for budgetary support besides soaring debts before the year ends.  The government is seeking to raise an additional  Ksh 22.00 billion in December December via a Tap Sale on recently auctioned papers, FXD1/2012/15 and FXD2/2019/15.  The Tap sale is scheduled to end on 23rd December 2020. On the other hand, National Treasury will be seeking to raise Ksh 75.00 billion in its January 2021 T-bond auction. This will be via two new issues: FXD1/2021/2 and IFB1/2021/16 seeking to raise Ksh 25.00Bn and Ksh 50.00Bn respectively.  The auctions will be held…

Safaricom, Kenya’s telecom market leader on Tuesday announced new M-Pesa tariff reductions. Chief Executive Officer Peter Ndegwa said the new tariffs will affect more than 90 per cent of all customer transactions when sending money. Going forward, therefore, it will now cost KSh6 to send between KSh101 and KSh500, down from KSh11. Transactions of between KSh1,501 and KSh2,500 will cost KSh32 down from KSh41. All transactions of KSh 100 and below will remain free. “This is in consideration of the expiry of the period for the zero-rated M-PESA transactions and the ongoing Covid-19 and economic circumstances,” Ndegwa said. According to…