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The government has announced a new raft of austerity measures as it attempts to restore stability in the country’s finances.
National Treasury Cabinet Secretary Mr. Henry Rotich said the fresh measures would include cutting back on non-crucial budget allocations in key State departments, freezing non-essential spending and also pushing the taxman to enhance revenue collection.
Mr. Rotich said the move would ease widespread concerns about the country’s public finances by reducing the fiscal deficit and putting the economy on the right path to recovery.

Kenya’s shilling was steady and traders said the currency will be boosted by dollar inflows from offshore investors attracted by the high interest rates on the government Treasury bills.
At 10.23 a.m. last Friday, the 9th of October 2015, commercial banks quoted the shilling at 103.05/15 to the dollar, compared to Thursday’s close at 103.00/10.
A senior trader at one commercial bank said: “It’s very stable, though the high government security yields are attracting (dollar) inflows, but demand remains subdued for now”.

The 2010 constitution requires public participation in key decision-making processes. However, progress towards this goal has been slow. Participation is costly and difficult to manage, especially in a country that is large and ethnically diverse.
Recently, the Kenyan government organized a conference on County Own Source Revenue Enhancement which was held at Great Rift Valley Lodge and Golf Resort, Naivasha.

Landlords from the Mt. Kenya region have up to December to declare their rental income with Kenya Revenue Authority (KRA) or face tough penalties.

Central Kenya region KRA Chief Manager Mr. Wilfred Okemwa has said landlords who voluntarily provide the information before the deadline will not be fined.
He urged landlords to comply with the law and take advantage of the amnesty given.  Mr. Okemwa spoke at East Africa Paper Mills in Thika, Kiambu County, at a function to recognize the company for being one of the best taxpayers in the region.
“We are determined to create a favourable environment for taxpayers.  Therefore Kenyans and all investors should be loyal to the country and pay their taxes without being pushed to do so for the sake of economic development in our country”, he said.
KRA has been awarding outstanding taxpayers this month.  Mr. Okemwa urged investors and Kenyans to change their attitude towards the taxman, saying the authority is committed to having a cordial relationship with taxpayers.
The iTax has made filing returns efficient and effective and it will soon bring an end to long and tiresome queues at the KRA offices, he said.  East African Paper Mills finance manager Sanjay Amin thanked KRA for recognizing the firm.

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Uchumi Supermarkets has closed operations in Uganda and Tanzania to stem further losses.

Uchumi Chief Executive Officer (CEO) Dr Julius Kipng’etich, said while the outlets make up 4.75 per cent of the retail chains operations, they account for 25 per cent of operating costs.
“The two subsidiaries have not made any profits over the last five years which means they have been draining parent operations,” said Dr Kipng’etich.

Treasury, October 6, 2015: By Joseph Kipkoech
The shilling has strengthened with support by rising yields on government securities and dollar sales by tea agencies paying to farmers.
At 8.42 am on Friday last week, banks quoted the shilling at 104.15/25 to the dollar, compared with Thursday’s close of 104.40/50.
Traders say a shortage of shilling liquidity has supported the shilling and kept overnight lending rate high at around 27 per cent this week up from 13 per cent in early September.

The Kenya Revenue Authority (KRA) has issued Makueni County with a tax compliance certificate.
Speaking while issuing the certificate on Friday, the 16th October, 2015 KRA Machakos station manager in charge of domestic taxes Mr. Aineah Ochieng said Makueni is among few tax compliant counties.
Mr. Ochieng said KRA has issues with several county governments over remittance of PAYE deduction. “We have challenges with some counties’, he said.

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The government has released Sh11.2 billion for the free primary and subsidised secondary education programmes.
Sh3.2 billion of the money released yesterday would go towards free primary education while Sh8 billion would be spent on subsidised secondary education.

Treasury, October 6, 2015: By Joseph Kipkoech
The Central Bank of Kenya (CBK) seeks to weed out dealers manipulating markets in an effort to stem volatility of the shilling.
The CBK governor, Dr Patrick Njoroge, said financial institutions ought to adhere to rules on forex trading and increase oversight on dealers to eliminate market indiscipline.

The Central Bank of Kenya (CBK) has planned to mop up Kshs.12 billion in excess liquidity from the money markets.
The bank uses the term auction deposits and repurchase agreements to absorb the liquidity, which makes it costlier for banks to hold dollars and helps to support the shilling.

DSC 8292According to the National Treasury, Integrated Financial Management Information System (IFMIS) is an automated system used for public financial management that interlinks planning, budgeting, expenditure management and control, accounting, procurement, audit and reporting. E-procurement is a component of IFMIS whose usage is submission and evaluation of procurement applications.

Treasury, October 6, 2015: By Joseph Kipkoech
The Central Bank of Kenya (CBK) has directed commercial banks to streamline the supply of coins as it warned retail outlets against giving customers alternative goods as change instead of coins.
The bank, which regulates issuing of currency, said the practice of offering shoppers airtime, matchboxes and sweets for low-value change has become a concern.
Retailers denying customers the possibility of obtaining their change in currency or opportunity to agree on any other form of settlement were violating the law, the CBK said last week on Friday.

Kenya Revenue Authority (KRA) is considering integrating more small and micro-entrepreneurs into the tax base by fast tracking absorption during licensing by country governments.
The move, which will net business people when paying for registration or renewal of licenses, is expected to deepen the tax base and help the taxman meet its tax target, which is currently short of.
KRA collected Kshs.1 trillion against a projection of Kshs.1,086 trillion in the 2014-15 budget in what is said to be the slowest growth in the last decade.

In Kenya, the constitution dictates that the public must be part of the budget-making process, and this is therefore promoting public participation in the national exercise.
With this year’s national Budget standing at over 2.2 trillion, greater oversight is required by Parliament to ensure taxpayers get value for every cent and citizens’ priorities are well captured in the budget process.
By doing so, the public will receive sufficient budget information to enable them to understand and influence the usage of taxes.  The substantial budget information will also enable the citizens to engage effectively in the budget process.

Treasury, October 6, 2015: By Joseph Kipkoech
The Capital Markets Authority (CMA) has been feted as the most innovative capital markets regulator in Africa by New York-based Africa Investor.
The Pan-African awards, launched in 2007, recognized best performing stock exchanges, listed companies, investment banks, research teams, regulators, socially responsible companies and sovereign wealth and pension fund investors.

The shilling has held steady with the local currency supported by dollars inflows to be used for purchase of Kenya’s high-yielding government debt.
At 10.10 am yesterday, commercial banks posted the shilling at 103.20/30 to the dollar, unchanged from Wednesday’s close.

Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge, has said ground has been gained in stabilizing the Kenya shilling, prices and interest rates.

This, he said, shows that measures by the Monetary Policy Committee (MPC) are producing the desired effect in reducing market indiscipline in the financial sector, a major cause of market instability.

The 2010 constitution requires public participation in key decision-making processes. However, progress towards this goal has been slow. Participation is costly and difficult to manage, especially in a country that is large and ethnically diverse.
Recently, the Kenyan government organized a conference on County Own Source Revenue Enhancement which was held at Great Rift Valley Lodge and Golf Resort, Naivasha.

The Central Bank of Kenya (CBK) has reassured the placement of mid-tier Imperial Bank under receivership would not affect the banking industry.
Governor, Dr. Patrick Njoroge said the lender, which has locked more than Kshs.58billion of customers’ deposits, represents about 1.8 per cent of the sector, and should not be a matter of concern.
The banking sector, he insisted yesterday, is “safe and robust”.

Treasury, October 7, 2015: By Joseph Kipkoech
State agencies and county governments have been warned against manual procurement as it contravenes the law.
Financial Management Information Service (FMIS) Director Mr Jerome Ochieng’ said deals outside the provisions of the digital platform were against the constitution and the Public Finance Management Act.
Mr Ochieng’, who was speaking to procurement officers from all state entities at a refresher workshop in Nairobi, urged them to adhere to the law.