Top stories in financial news this morning:

1. Fuel Prices Drop Further

Contrary to our predictions fuel prices dropped further for the third time, consecutively. Super petrol is now retailing at KES 106.48 per liter in Nairobi while diesel and kerosene now retails at KES 97.09 and KES 73.97 per liter.- Pesatalk

2.KRA opposes removal of tax on food and farm inputs

The continued exclusion of some goods from consumption tax on Tuesday ran into fresh opposition after the taxman opposed a recent Cabinet decision to reverse the planned phase-out of exemptions. Kenya Revenue Authority (KRA) Commissioner General John Njiraini warned the government to tread carefully when formulating tax policies to ensure they have long-term benefits- Business Daily

3. Central Bank halts rules on recapitalisation of banks, boards

The Central Bank of Kenya (CBK) has temporarily suspended the operationalisation of new prudential guidelines. The rules required commercial banks to, among others, recapitalise and reconstitute their boards of directors in line with the best global banking practices by August 1.- The Standard

4. Weak records on television sets hurt digital drive

Poor records on TV set ownership could stand in the way of Kenyans being supplied with free gadgets to help them migrate from analogue to digital broadcasting signals. Information and Communication PS Bitange Ndemo said the ministry had presented a memorandum to the Cabinet seeking to have it buy set top boxes and distribute them free of charge.- Business Daily

5. Kenya sees stable food supply, global prices a concern

Kenya expects a stable supply of food until December after its production of staple crops icreased this year, but prices could rise due to pressure from soaring grain prices on international markets, the Agriculture Ministry said on Tuesday.- Reuters

6. Kidero buys stake worth Sh100m in Family Bank

Former Mumias Sugar chief executive and aspirant for the Nairobi Governor’s seat Evans Kidero has bought a significant stake in Family Bank that is estimated to be worth more than Sh100 million.- Business Daily

7. DHL workers to get 10pc pay rise over two years

Over 200 unionised employees of the DHL Supply Chain are set to enjoy a 10 per cent increase in income over the next two years.

In an agreement signed between the company and the Kenya Union of Commercial, Food and Allied Workers (KUCFAW) on Tuesday, the workers will receive the year-on-year pay adjustment in the period between August 2012 and August 2014. Allowances will also be reviewed during the period.- Daily Nation

8. Kenyan companies make billions from PE deals

Kenya’s small and medium-sized companies are lately reaping billions from increased interest by foreign investors seeking a regional toehold, raising fears that pricing may shut out inflows.  More than 10 private equity (PE) funds targeting Kenya and the East African region have been formed in the past two years, in a period which development finance institutions (DFIs) have also stepped up their activities.- Business Daily