Friday Brief – 23rd Jan

Kenya Revenue Authority to be split into two by year end
The Kenyan Government will by the end of this year split Kenya Revenue Authority (KRA) into two independent agencies but inter-dependent agencies. This process of this split will begin by tabling of the Customs and Border Protection Agency Bill and the Inland Revenue Agency Bill this year. The International Monetary Fund (IMF), however, is opposed to the moved and has written a report to KRA on the same since it is of the opinion that Kenya does not have the capacity to run the two entities independently. The two agencies to be formed are the Inland Revenue Agency which will be charged with catering for Medium & Small Taxpayers, (MST) and Large Taxpayers, (LTO) and the Customs and Border protection Agency in charge of customs services [...]

Treasury cuts 2014/15 domestic borrowing by close to quarter

The Finance ministry has cut its domestic borrowing target this fiscal year by close to a quarter to Sh144.8 billion from its target of 190.8 billion shillings, a move that is aimed at lowering domestic lending rates and stimulating growth in the economy [...]

Mwalimu Sacco eyes 75pc stake in Merali’s bank

Mwalimu Sacco, which had bought a 51 per cent stake in Equatorial Commercial Bank, intends to buy an additional 24 per cent by selling 40 per cent of its own Mwalimu National Holdings. The Sacco which acquired the 51 per cent stake by end of last year, thus beating the capital gains tax effective date, has a deferred share purchase agreement that will enable it extend its stake in the bank up to 75 per cent. Purchase of the stake in Equatorial Holding Company, which is owned by Naushad Merali, will give the Sacco ownership in Equatorial Insurance Brokerage and an indirect interest in Fidelity Shield Insurance [...]

CfC Stanbic targets project finance with new Sh4bn war chest

CfC Stanbic, which had a successful Sh4 billion bond, is looking to accelerate its project financing with focus on infrastructure, power and commodities. The bond issue which aided in increasing the bank’s capital adequacy, tier-two capital and better match the maturity of its assets and liabilities. The bank intends on lending more medium term money for individuals seeking mortgages and companies seeking longer-term financing [...]

NSE ranked third best performer in Africa

East African bourses topped in the sub-Saharan region with Nairobi Securities Exchange (NSE) ranked third-best after Tanzania and Uganda. The NSE returned a 19.2 per cent growth in the full year ended 2014, while Tanzania and Uganda markets traded 22.7 and 14.1 per cent higher respectively. Returns on bonds are higher in Kenya, which will keep the interest of foreign investors. One can get a 10 per cent coupon rate in Kenya which is high compared to a 2 per cent coupon rate in the US. Markets are usually positively influenced by higher growth rates in terms of the gross domestic product (GDP) [...]

 

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