Stockbrokers now hire top law firm to file case over tax
Stockbrokers have hired a top law firm, HHM Oraro Advocates, to seek the court’s ruling on clauses that they feel make deducting capital gains tax from investors impractical. This is due to an apparent conflict in law that in one section requires stockbrokers to deduct capital gains tax at the rate of 7.5 per cent while in another section it indicates that dealers should retain five per cent of investor’s net gains from share sales.
The stock dealers are of the opinion that investors should submit their capital gains to the KRA as part of their annual income tax instead of them bearing the responsibility of deducting and submitting the levy to KRA. The stockbrokers also fear that the ongoing non-collection of the new tax could leave them facing colossal claims from the taxman. The tax collector KRA has sought to address the brokers’ complaints by issuing a raft of guidelines for assessing tax payable […]
Nestle sacks 46 workers in Kenya and regional hub
The affected employees are drawn from Nestlé Kenya and Nestlé Equatorial Africa market with the latter made up of 21 countries, including Kenya, with Nairobi as the regional hub. Among those sacked are senior accountants and expatriates out of the 46 senior and junior staff members who have been laid off. Reasons for the layoffs are competition and huge operating costs which continue to weigh down on companies. The consumer goods company has also been struggling to retain its market share in a fluid market. Other companies which have recently sacked some of its employees are Eveready and Cadbury due to high operational costs […]
Uganda traders escalate cargo dispute to EAC
Uganda has raised concern a new non-tariff barrier levied by Kenya which are selectively auctioning Ugandan goods held at the port of Mombasa. It also indicated that there has been increased impounding of suspected counterfeit goods meant for its market at the port of Mombasa. The port of Mombasa which has faced congestion to longer tine of clearance of goods has had Kenyan officials engaging in a long-running spat with Ugandan traders over uncollected cargo at the port […]
Ernst & Young cleared in EAPCC accounts scandal
The State and the NSSF 2013 claimed that EAPCC financial statements had been doctored. This allegations put E&Y, the company’s auditors, on the spot over their possible involvement in covering up accounting irregularities. E&Y had been hired by Kenao to audit the cement manufacturer’s books on its behalf. The government and the National Social Security Fund have a combined stake of 52 per cent shareholding at the Nairobi Securities Exchange-listed EAPCC making them a majority shareholders […]
Same day stock buy-and-sell starts in September
The Central Depository and Settlement Corporation (CDSC) is currently installing a new system to allow investors to buy shares and then sell on the same day. Currently transactions are settled in a total of four working days. Fast conclusion of transactions will enable investors to trade on margins gained during the day improving liquidity of shares in the market. Market liquidity is a huge attraction to foreign investors who put huge emphasis on the ease of entering and exiting a counter. Currently transactions are settled in a total of four working days […]