KRA, Unilever Tea in Sh1.8bn tax battle

The Kenya Revenue Authority (KRA) is locked in a multibillion-shilling tax battle with Unilever Tea Kenya where it is seeking unpaid taxes dating back to the start the millennium. Unilever has however countered the KRA’s claims that the tea was not exported. KRA, whose collections for the first quarter ended September missed target by a whopping Sh28 billion, has been tussling with various companies as it struggles to meet targets [...]

Weak shilling lifts Williamson, Kapchorua tea profits

Williamson Tea and its associate Kapchorua Tea reported strong jumps in earnings for the six months to September, benefiting from the weak shilling. Williamson’s net profit in the period increased 126.2 per cent to Sh380.7 million as finance income. Kapchorua’s net profit more than doubled to Sh100.4 million.The shilling has depreciated about 12 per cent since the beginning of the year to exchange at 102 units against the dollar, benefitting exporters [...]

KQ plans forensic audit of operations amid widening loss

National carrier Kenya Airways has announced plans to undertake a forensic audit of its operations to investigate claims of revenue leakages. The airline’s poor financial performance has been linked to revenue haemorrhage through the machinations of its management and government officials [...]

Family Bank rides loan growth to higher profits

Family Bank has announced a Sh1.8 billion after tax profit for the nine months ending in September 2015 compared to Sh1.36 billion the previous period. The bank is seeking to boost its capital through a bonds issue and recently raised Sh2 billion from the local market. The bank’s first tranche of its Sh10 billion bond issue sought to raise Sh4 billion. The management was upbeat of an oversubscription and indicated it was prepared to accept Sh2 billion more through the green shoe option [...]

Relief for borrowers as banks drop plans to raise cost of loans

Commercial Banks have shelved plans to increase the cost of loans, offering borrowers a much-needed relief and signalling a possible revival of large investments whose prospects looked gloomy in the past couple of months with the steep rise in interest rates. The pull-back follows a steep fall in Treasury bill and bond yields from 22.5 per cent on October 21 to 9.7 per cent last week [...]

MPC holds benchmark rate at 11.5pc amid market stability

Central Bank of Kenya’s rate-setting committee has maintained the policy benchmark at 11.5 per cent amid stability in the exchange rate and falling interest rates on government paper. The Monetary Policy Committee (MPC) has held the rate steady since it was first fixed at the same level in July following weeks of turbulence in the exchange rate. The shilling has been stable at 102 units to the dollar for several weeks after weakening to four-year lows in early September [...]

Brookside pays North Rift dairy farmers Sh2bn

Farmers in North Rift earned Sh2.2 billion from Brookside last year for raw milk deliveries as the Ruiru-based processor kicks off recruitment drive in the region to ward off competition [...]