Ministry proposes VAT waiver to spur tea earnings

The Ministry of Agriculture has proposed to waive value added tax (VAT) and reduce ad valorem levy charged on Kenyan tea in order to make the beverage competitive in the wake of a slump in world prices. Agriculture PS Sicily Kariuki indicated last week that the tax ad valorem levy - which is a tax charged on the value of tea - would be reduced from one to 0.75 per cent following an outcry from the industry. Ms Kariuki said her ministry had also forwarded a request to the National Treasury for consideration for a waiver of VAT on locally sold tea for inclusion in the 2015/16 financial year [...]

NSE closes trade week 21 points lower

The Nairobi Securities Exchange (NSE) closed 21 points lower for the week on Friday as the index paid the price for limited price gains among the bigger counters in the bourse. The NSE 20-Share Index ended the week at 5,350 points compared to 5,371 the previous week, while the NSE All-Share Index was up marginally from 171.6 points to 172 [...]

Shilling set to hit low of 94.40 units against dollar this year

The shilling will depreciate to about Sh94.40 to the dollar this year as the US currency strengthens, economists at Barclays Africa say. Barclays Africa expects the shilling to hit a low of 94.40 units to the dollar this year as the US currency strengthens. Barclays’ projection is similar to that of institutional research teams from Citi, Consensus Economics Forecast and Standard Bank (SA) which have variously put the expected exchange level by year end at between 93.80 and 95 units to the dollar [...]

Cement sales rise by a fifth on robust property development

Cement consumption grew by nearly a fifth to hit a record five million tons last year driven by robust growth in property development. Data from the KNBS shows that uptake of the building material rose by 19 per cent from 4.2 million tons in 2013. The uptake is expected to rise further on the back of a vibrant real estate sector and planned mega infrastructure projects [...]

Health firm gets Sh9m loan, plans expansion

Penda Health, a chain of clinics which serves women in the low and middle-income markets, plans to increase its branch network after getting funds from the owner of a large US healthcare chain. The healthcare chain will use the money to hire more staff and increase its branch network to six from the current three by the end of this year [...]

L’Oreal introduces US makeup brands Maybelline in Kenya

French cosmetics multinational L’Oréal has introduced in the Kenyan market a new range of beauty products that are named after its US based affiliate, Maybelline. L’Oréal has been keen on capturing the middle class market both in Kenya and abroad through buyouts. The French cosmetics company acquired Maybelline, a US cosmetics company, in 1996 to gain access to the big American middle class [...]

Failure to supply power deepens Mumias cash woes

Troubled Mumias Sugar Company has failed to supply electricity to Kenya Power since November, denying the miller revenues as it struggles to recover from losses. This has been occasioned by a shortage of a key raw material—bagasse—which remains from crushed cane that turn electricity generation turbines after heating. This is linked to a shortage of cane in western Kenya that cut its overall sales 62 per cent to Sh2.67 billion and prompted the Nairobi bourse listed miller to temporarily shut down its plant for 45 days [...]