Kenyan shilling steady; KenGen drags shares lower again

The Nairobi Securities Exchange's main NSE-20 Share Index fell 23.27 points or 0.45% to 5,174.41 points. KenGen, which last week reported a 46% drop in after-tax earnings and slashed its dividend, closed 4.8% lower at KES 10.95 a share. On the foreign exchange market, the shilling closed trade at 89.35/45 to the dollar, from Friday's close of 89.40/50. Bonds worth KES 1.38 billion were traded, up from KES 920.1 million on Friday. [...]

Kenya plans to end tax holiday for foreign firms

Kenya plans to retire most of the tax incentives that foreign firms have been enjoying for setting up operations locally. Kenya Investment Authority (KenInvest) chief executive Moses Ikiara said “This sort of policy [on attracting investments] means that foreign firms have in most cases been taking away more than the economies that compete to host them gain.”  [...]

NIC Bank Prioritizes Capital Returns Over Market Share

NIC Bank will prioritize returns on equity over efforts to become the market leader in Kenya, said the Managing Director John Gachora. “We have debated on whether we want to be a top-tier bank, but we have concluded that we are a niche leader,” he said. “Our main focus now is on our return on equity and we are targeting between 35 to 40% rather than being the market leader.” The bank has about 4.3 % of the Kenyan banking market, and its strengths lie in corporate and investment banking, asset financing and lending to institutions. [...]

KQ protest halts Fastjet’s comeback bid

Kenya Airways (KQ) has scuttled Fastjet’s plans to make a comeback in the Kenyan market after its complaints about the budget airline saw the regulator defer granting the firm an operating licence. “We have received complaints from the likes of Kenya Airways, African Safaris and other airlines about some aspects of Fastjet’s operation,” KCAA acting director-general Joseph Kiptoo told the Business Daily. “We have already forwarded these complaints to Fastjet and we are awaiting their response. Once they respond, we will grant them another licence application hearing.” [...]

EAC ministerial meeting opens in Kigali to review integration

The 21st Meeting of the Sectoral Council of Ministers responsible for East African Community (EAC) Affairs and Planning (SCMEACP) started yesterday in Kigali, Rwanda. The meeting is considering the status of implementation of previous decisions of the SCMEACP; progress report on the status of implementation of the EAC Common Market and status of the EAC Institutional Review. [...]