KRA to miss capital gains tax target by Sh6.8 billion

The government is set to miss nearly all of the Sh7 billion it expected from charging capital gains tax (CGT) on stocks and property this financial year, official statistics show. The taxman is expected to collect a paltry Sh200 million in CGT by the end of the financial year in June against the Sh7 billion target, according to the Kenya National Bureau of Statistics. Controversy has dogged the tax since its return through last year’s budget statement, leaving the taxman unable to apply it in key sectors such as the stock market [...]

Banks profit grows slowly in the first 3 months of 2015

Kenyan banks posted slower quarter-on-quarter pre-tax profit growth of 11.6 per cent to Sh37.7 billion as lending cooled off in the first three months of the year. Analysts noted the banks were grappling with tight liquidity, forcing them to pay higher interest rates to attract deposits. CBK’s aggressiveness in mopping up cash as it sought to protect the shilling has been a key source of the tight liquidity [...]

CBK holds policy rate amid shilling, inflation pressure

The Monetary Policy Committee (MPC) of the Central Bank of Kenya has retained the benchmark interest rate at 8.5 per cent, signalling its priority to keep the price of money low but also downplaying concerns of rising inflation and the depreciating shilling. In April, the overall inflation hit 7.1 per cent. The Central Bank of Kenya said the depreciation of the shilling was actually a correction of a previous misalignment [...]

KCB stock sheds 2.4 per cent even as profit rises

KCB stock yesterday shed 2.4 per cent to settle at Sh60.50 even as the bank recorded a 12 per cent growth in first quarter net profit. Analysts at Standard Investment Bank (SIB) said investors may have anticipated higher profit from the bank, which could have affected the share performance. The counter was the largest mover at the NSE with 5.16 million shares worth [...]

KCB regains top lender position on 12pc profit rise

KCB Group regained its position as Kenya’s most profitable bank after posting a 12 per cent net profit growth in the first quarter. KCB’s performance in the first quarter was driven by increased interest and transaction-based income. The lender’s net profit in the period stood at Sh4.4 billion, overtaking the Sh4.3 billion announced by its top rival Equity Group that had relegated KCB to second place in 2014 full year earnings table [...]

Kisumu oil firm planning listing on the London Stock Exchange Exchange

Swala Energy, currently exploring for oil near Kisumu, plans to list on the London Stock Exchange (LSE) in the second half of the year. The firm is currently evaluating offers for a stake it has put on sale.The company, which is also listed on the Australian Stock Exchange, has already appointed an advisor for the LSE alternative investment market (AIM) segment listing [...]

KQ ditches buying Dreamliners in favour of leasing the planes

Kenya Airways(KQ) has ditched a plan to buy three B787-8 Dreamliners and will instead lease them from an Irish firm, a move aimed at boosting the airline’s constrained cash flow. KQ had announced it would borrow an additional $1 billion (Sh94 billion) in the year ended March to finance the purchase of more aircraft including the Dreamliners. The shift to leasing is expected to reduce the airline’s debt load and overall capital expenditure, easing pressure on the loss-making airline [...]