Second Hand Clothes Prices to Drop
In yesterday's budget speech, the finance minister said that he had instructed KRA to immediately revert their taxation method on second hand clothes. KRA raised the taxes on 20-foot containers of mitumba by 73% raising the cost of mitumba clothes significantly. With the ministers decision on the taxation on second hand clothes, the prices of mitumba should drop soon.
Wekesa’s Pay Day
Wekesa, a plumber, was recently contracted to install piping for an apartment and earned himself KES 15,000. This is the highest he has earned in a while, and like many Kenyans, this was how he spent the money. First, he decides to reward himself for his…
Looking for an Investment? Try CBK’s 10-Year Bond
The Central Bank of Kenya, in its capacity as fiscal agent for the Republic of Kenya, has began the sale of a new 10-year fixed coupon (fixed payment) bond intended for budgetary support purposes. This seems to be in line with the KES 106 billion the government seeks to…
Digital Migration Could be Cheaper
The cost of migrating from analogue signal to digital signal will soon drop after the government’s move to remove import duty on set top converter boxes. In a budget statement read by Finance Minister Njeru Githae in parliament on 14th June, the move is aimed at making the boxes affordable…
Investors Prefer Longer-dated Bills
Yesterday the Central Bank of Kenya (CBK) auctioned 91 day Treasury bills worth KES 2 billion. The bank received 159 bids amounting to KES 632 million representing a subscription rate of 32%. The bank accepted bids worth KES 584 million. The yield on the short term securities increased from 9.801%…
Pesa Portfolio – 15 June 2012
Below is a table showing the performance of the Pesa Portfolio following yesterday’s closing bell at the Nairobi Securities Exchange. The portfolio gained KES 45 in yesterday’s trading. The Mumias Sugar stock gained 10 cents in yesterday’s trading to close at KES 6.10 and add…
Treasury Backs KRA in Property Tax Collection
One of the highlights from yesterday’s budget speech is treasury’s introduction of new measures to rope landlords into the tax bracket. This isn’t the first time such a move has been made. In 2005, Kenya Revenue Authority (KRA) announced plans to use bank accounts…
Banks to be Liable For Agents' Actions
Banks will now be liable for the actions of their appointed agents in regard to service rendered to clients on their behalf. In a bid to protect bank clients, Finance Minister Njeru Githae said in the budget statement 2012/2013 that the government is committed to ensuring that the clients’ interest…
Forex Trail – 15 June 2012
The Kenya Shilling gained 0.22% against the USD in yesterday's trading. The Kenya Shilling also rose against the Sterling Pound, the SA RAnd, the Uganda Shilling, the Tanzania Shilling and the Rwanda Franc only dropping value against the Euro.
Stocks Watch – 15 June 2012
At the close of trading at the NSE yesterday, the NSE 20-share index stood at 3,685.36 while the All-share index stood at 79.41. The total number of shares traded stood at 36.596 million in 1288 deals. The equity turnover stood at KES 254.466 million. In today’s trading we will be…
What Brought Down Fuel Prices?
Energy Regulatory Commission (ERC) yesterday reviewed fuel prices, lowering pump prices for super petrol, diesel and kerosene by KES 3.46, KES 2.93 and KES 3.80 per litre respectively. Super petrol will now retail at KES 117.67, diesel at KES 105.51 and Kerosene at KES 83.20. So, what factors…
KQ Dividend Drops 5 Times
The number of KQ shares has increased 4 times while the profits for the year have dropped by a little over half. Shareholders' dividends will then reduce by 6 times from KES 1.50 paid out last year to KES 0.25 to be paid out this year.
Closing Bell – 14 June 2012
A summary of the day's events at the NSE.
Petrol Price Drops by KES 3.46 a Litre in Nairobi
Our pump price projections were almost accurate with our diesel price estimates narrowly missing the exact price by KES 0.07. That aside, the price of super petrol has dropped by KES 3.46 to retail at KES 117.67 per litre in Nairobi. Diesel will retail at KES 105.51 per litre, down…
Budget 2012: The 40 Most Important Bits
A few tidbits from the 2012/2013 budget reading in parliament.
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