News

Kenya’s shilling held steady against the US dollar with traders expecting the currency to trade in a tight range throughout the week.
At 9.45 a.m. yesterday, commercial banks quoted the shilling at 101.95/102/05.
“Nothing has happened on Tuesday morning. I don’t see anything on the horizon today that will make us change direction,” said one trader at a Nairobi – based commercial bank.

Treasury, October 27, 2015: By Joseph Kipkoech
Kenya is seeking a review on the use of $688.3 million (Sh 70.22 billion) standby loan from the International Monetary Fund, citing persistent domestic and external shocks in the economy.
The country however, said its performance under the structural economic programme has been in line with targets and all quantitative performance criteria and indicative targets through end-March 2015 had been met.

The Kenya shilling strengthened further on a steady inflow of dollars to be used for buying the country’s high-yielding government debt.
At 10.05am yesterday, commercial banks posted the shilling at 101.80/102.00 to the dollar, tightening up from Wednesday’s close of 102.00/10.
“We have seen huge interest in the government securities from offshore investors,” said a trader at one Nairobi-based commercial bank.

The Central Bank of Kenya (CBK) sought to inject Kshs.16 billion into the markets through a reverse repurchasing programme.
The bank’s offer yesterday to inject liquidity into the market goes contrary into its recent tightening stance.
Traders have said the CBK may be seeking to help smaller lenders, who have found it difficult to borrow from larger counter parts after seizure of a second-tier bank last month.

Treasury, October 27, 2015: By Joseph Kipkoech
Uchumi Chief Executive officer says he will put the retail chain back on its feet in a year and the strategic plan includes use of technology to entice young shoppers.
Dr Julius Kipng’etich said the once household name retailer will then re-enter the markets it has pulled out from.
“In a minimum of one year, Kenya will have recovered to be the springboard to the rest of Africa. In five years, Uchumi will be Africa’s Walmart,” he said.

The Kenyan shilling strengthened to a two-month high, boosted by dollar inflows into local stocks and bonds from investors abroad.
At the close of trade on Monday, Commercial banks posted the shilling at 102.10/20 per dollar, up from 102.40/50 at last Friday’s close, its strongest level since August 17.

Treasury, November 2, 2015: By Joseph Kipkoech
Imperial Bank could be re-opened next month but only after the owners meet a raft of conditions set by the Central Bank of Kenya (CBK), including fresh capital injection after new revelations of massive plunder by top managers.

Treasury, October 26, 2015: By Joseph Kipkoech
Diaspora remittance to developing countries, are projected to rise to $435 billion in 2015, a two per cent increase from previous year, the World Bank has said.
The bank however said the growth rate remittances would fall from 3.3 per cent in 2014 to two per cent in 2015.

National Treasury Cabinet Secretary Mr. Henry Rotich wants the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK) to be more proactive in protecting consumers in the financial sector.
Mr. Rotich who spoke in the wake of mounting spotlight on CMA and CBK over failure to deal with trouble at Imperial Bank before it went under while the two regulators had made progress in enhancing market supervision, said they need to enhance their vigilance.

Treasury, November 2, 2015: By Joseph Kipkoech
Seven out of 10 people in Kenya are now living within a three-kilometre radius of at least one financial service provider compared with six out of 10 people two years ago, a new survey shows.

Treasury, October 26, 2015: By Joseph Kipkoech
Narok, Machakos, Mombasa, Nairobi, Kericho and Nakuru are amongst some of the small number of counties which have reported significant amounts of locally generated revenue. One of the main reasons for this is that a number of counties do not enjoy the kind of economic activity that is easy to profitably tax. Another reason is that counties have not yet won the trust and respect of their people – in some cases because they have not even tried.

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.

Treasury, October 29, 2015: By Joseph Kipkoech
The Economic Report on Africa 2015 takes cognisance of the fact that Africa has the potential to experience growth greater than the East Asian countries through industrialization.
The recent launch of Kenya’s 10-year Industrial Transformation Programme informs the stance by the Government in pulling out all stops towards industrialising the country.

Treasury, October 26, 2015: By Joseph Kipkoech
The Central Bank of Kenya (CBK) has said it was offering Sh10 billion in reverse repos because liquidity was “skewed.”
The CBK also offered reverse repos on Wednesday last week, the first since August last year, contrary to the bank’s recent monetary tightening stance. Traders said the Central Bank may be seeking to help smaller lenders, who have found it difficult to borrow from larger counterparts after the seizure of Imperial Bank – a second – tier lender – last week.
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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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Treasury, October 29, 2015: By Joseph Kipkoech
The shilling seems to be healing curve against the US dollar after it hit the roof in mid September when it exchanged at 106.2. On Monday commercial banks quoted it at 102.1 to the dollar.
Market watchers say it is just a matter of time before the shilling goes back to its level in January 2016 when it exchanged at 90.7 to the dollar. The move follows the rising interest rate on Treasury Bills.
Meanwhile, the shilling was steady yesterday and traders said it was expected to keep a firm bias, helped by foreign investor flows into government securities.

The Unclaimed Financial Assets Authority (UFAA) Africa summit has been rescheduled for April 2016, according to organisers.
Initially scheduled for October 28 to 30, it has been moved to April 27 to 29 due to what the Unclaimed Property Assets Register Kenya (UPAR) described as unavoidable circumstances.
UPAR chief executive and summit director Mr Joe Ngigi said the institution will instead conduct stakeholder trainings on October 28.

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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Treasury, October 27, 2015: By Joseph Kipkoech
The African Economic Outlook report by the African Development Bank released early this year indicated East Africa will record the fastest growth on the continent in 2015 and 2016.
The positive growth trajectory predicted over the medium term is an indicator that the East African Community has a good chance of reaching a developmental tipping point and making it the most attractive investment destination on the African continent.

The government targets to collect over Ksh 1.3 trillion this financial (2015/16) through the Kenya Revenue Authority (KRA).
National Treasury Cabinet Secretary Mr Henry Rotich said the performance of the revenue collection by KRA will be underpinned by the on-going reforms in tax policy and administration.
“KRA is expected to institute measures to expand the revenue base and minimize tax leakages,” said Mr Rotich.
The Cabinet Secretary was speaking yesterday at Kenyatta International Convention Centre (KICC) during the KRA taxpayers day.