Safaricom backs down on unpopular change to tariff

Safaricom has changed its mind about taking away all the unused airtime, SMS credits and data held by Karibu Postpay tariff users after May 26 this year. Subscribers can keep their accumulated bundles but any new ones purchased from May 1 will expire in 30 days. The reversal follows an outcry from the tariff’s more than 150,000 subscribers, with some threatening legal action. The Karibu tariff, one of the cheapest available, is closed to any new subscribers and will not be opened [...]

Co-operative Bank first quarter pre-tax profit jumps 30 per cent

The Co-operative Bank of Kenya has reported a 30 per cent increase in first-quarter pre-tax profit to Sh4.5 billion from Sh3.47 billion in the similar period last year, buoyed by a jump in interest income. The bank’s net interest income on loans, climbed 21 per cent to Sh5.8 billion in the three months to end-March. Non-funded income grew by 8 per cent while net profit increased by 28 per cent to Sh3.17 billion in the three months through March, compared with Sh2.47 billion a year earlier [...]

Tullow CEO rules out takeover

The chief executive of Africa-focused Tullow Oil has ruled out a takeover of the company, saying the involvement of several African governments in its projects would make it too complicated to buy. The oil industry, hit by a collapse in crude prices on the back of a global supply glut, is ripe for takeover deals as cash-rich players target smaller firms, a reality highlighted by Shell’s $70 billion (Sh6.58 trillion) move for BG [...]

Rising food prices push up cost of living in April

A significant increase in the price of several food items pushed up cost of living in April. The increases are attributed to dry weather conditions that have been prevailing for the first four months of this year. It is hoped that with the onset of short rains, this will improve supply of food items and bring down their prices. Data from the Kenya National Bureau of Statistics (KNBS) show that inflation rate stood at 7.08 per cent in April, 2015 compared to 6.31 per cent in March, 2015 [...]

RVR owner considers strategic options to raise investment capital
Pan African infrastructure and industry investment company Qalaa Holdings, the majority investors in Rift Valley Railways (RVR) - the Kenya-Uganda railway concessionaire - is looking at different alternatives to increase liquidity for its investment financing. The Egypt-based firm has appointed a top financial strategy adviser in the market, to advise on the full exit of Tanmeyah for Microfinance Services, where it has a 70 per cent stake and also permit share buyback by Qalaa Holdings on an opportunistic basis [...]

KRA plans to rope SMEs into tax bracket to drive revenue collection

Kenya Revenue Authority (KRA) will seek the services of the county governments in order to bring small and medium enterprises ( SMEs) into the tax bracket. Because majority of SMEs register their businesses with the county governments, the taxman opines that it will be easier to integrate them into the tax bracket and thus enable the Government to meet its financial obligations [...]