Treasury scraps controversial 5pc capital gains tax after rejection

Treasury secretary Henry Rotich has scrapped the controversial five per cent tax on the gains made from selling shares and instead introduced a 0.3 per cent withholding tax on sales value. Resistance by the Kenya Association of Stockbrokers and Investment Banks (Kasib) has argued that re-introduction of capital gains tax will make the Nairobi bourse an unattractive investment destination and halt the move towards making the city an international finance centre[...]

Steep rise in banks capital to Sh5bn signals mergers

Commercial banks face a steep increase in capital requirement after Treasury secretary Henry Rotich proposed a raise minimum shareholders’ funds to Sh5 billion from the current level of Sh1 billion.The capital requirement could trigger mergers and acquisitions of the smaller lenders with bigger suitors.The minimum capital requirements in South Africa is Sh9 billion, Nigeria Sh8 billion and Egypt Sh6.2 billion[...]

End of Uchumi CEO term sets stage for new executive team

Uchumi Supermarkets chief executive Jonathan Ciano’s contract is set to end next month, setting the stage for a possible change in the retail chain’s executive suite. Mr. Ciano is negotiating for renewal of his term with Uchumi’s board, but some Uchumi directors gave strong indications that he may not get a fresh mandate at the retailer [...]

KQ stock hits new low despite bailout bid

Investors have largely shrugged off the government’s announcement of a Sh4.2 billion Kenya Airways bailout two weeks ago, pushing down the stock to new lows.KQ share was Thursday trading at Sh6.15 (down from Sh6.90 when bailout news broke) or a 12-year low. Analysts say the share has not been helped by the market being on a bear run, with services counters particularly faring badly over the past six months due to the downturn in tourism [...]

Mumias on brink of collapse, urgently needs Sh1bn bailout

Mumias Sugar Company risks collapsing if the government does not release the Sh1 billion bailout cash it promised the firm.Managing director Coutts Otolo told the Business Daily that the miller has been unable to buy some critical spare parts needed to enable it crush at least 7,000 tonnes of cane per day.The firm expects to use the bailout cash on maintenance of production lines and paying farmers who it owes Sh500 million [...]

Airtel wants piece of Google, Facebook revenues

Airtel has revived the debate calling for big Internet companies such as Google and Facebook to share revenue with Internet service providers. The call by Airtel rekindles the debate sparked by Telkom’s Kenya former CEO MickaelGhossein two years ago when he reckoned that Google should help to pay for the billions of shillings invested in networks for services that consume huge bandwidth like videos [...]

Fastjet licence application up for review by new KCAA board

Fastjet’s bid to make a comeback into the Kenyan market after it exited through selling its stake in Fly540, has encountered roadblocks after Kenya Airways (KQ) protested the move.London Stock Exchange (LSE)-listed airline Fastjet will later this month know the fate of its licence application to operate in Kenya when the regulator’s newly reconstituted board holds its maiden meeting

Board upbeat Lufthansa return to boost sector

The Kenya Tourism Board (KTB), which waged a protracted campaign for the return of Lufthansa, says reintroducing Frankfurt-Nairobi direct passenger flights will help tourism recovery.After an 18-year absence the German carrier is expected to resume flights on October 27[...]