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Tuesday, 18 Jun 2019

Treasury Secretary Henry Rotich is set to announce tough tax compliance measures


Insights Africa

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Economic Outlook

Economic Outlook

  • Treasury Secretary Henry Rotich is set to announce tough tax compliance measures intended to catch defaulters using smart technology in his bid to raise funding for 3.1 TR KES (30.37 BN USD) budget starting July 1. The Treasury is targeting to raise 2.115 TR KES (20.7 BN USD) in total revenue.
  • In Kenya, maize millers have collected 600,000 bags of cheap maize at the National Cereals and Produce Board (NCPB) after the presidency intervened to resolve the stalemate that caused delays one month after processors had paid for the grain.
  • The Kenyan government plans to spend 1 BN KES (9.8 MM USD) to establish a marine hatchery in Kwale, a county in the former Coast Province of Kenya, in order to boost Kenya fishing industry.
  • Kenya gross national savings as a percentage of its output are lagging behind the sub-Saharan Africa average in the medium term as easy access to cash through mobile platforms continues to discourage savings.
  • The Minister of Finance and Economic Planning, Mr. Matia Kasaija, has presented to Parliament 40.5 TR UGX (10.84 BN USD) 2019/2020 national budget revealing that Uganda will finance 74.5% of its national budget.
  • Rwanda economy grew 8.4% in Q1-2019, noting that its monetary value of all finished goods and services that were produced was estimated at 2.14 BN RWF (2.3 MM USD), compared to 1.98 BN RWF (2.16 MM USD) in Q1-2018.
  • The Central bank of Tanzania has taken another liquidity-easing measure which is the Statutory Minimum Reserve (SMR), reducing banks' minimum reserves requirement to 7%, from 8%, effective July 1 in order to accelerate the growth of credit to the private sector and thus stimulate economic growth.
  • Zimbabwe president Emmerson Mnangagwa stated that the country must have a new currency by the end of 2019, arguing this would help stabilize prices and inflation, which is at a 10-year high.
Political Events

Political Events

  • Interior Secretary Fred Matiang'i has deported seven Chinese nationals found trading illegally in Gikomba market. Three of them had no valid work permits while the other four have been engaging in employment and other income generating activities unauthorized under their respective work permit classes.
  • Nandi governor Stephen Sang has been arrested as police investigate him over the destruction of Kibwari tea estate. The governor was later driven to DCI offices in Kisumu where he is to be interrogated further.
Stock Market

Stock Market

  • After several years of preparation, the Nairobi Derivatives market will begin to operate on 4th July. NSE received the license to operate from the market regulators; CMA and the Central Bank of Kenya. It will be the number two derivatives market in Sub-Saharan Africa after the Johannesburg market.
  • Data from the Uganda Securities Exchange shows that the number of depository accounts for the first four months of the year to April, has increased from 33,586 in 2018 to 33,968 in 2019.
Companies Transactions

Companies Transactions

  • Vivo Energy, the retailer of Shell-branded fuel products, has retained its position as the top oil marketer for the 2nd year in a row. Its market share grew to 18.7% in 2019 compared to 17.6% in 2018. Total Kenya share also grew to 16.7% to emerge 2nd largest petroleum dealer, followed by KenolKobil to the 3rd position whose share dropped to 14.7%.
  • Tyre distributor Sameer Africa has written off 403.6 MM KES (3.9 MM USD) of its investment in its regional subsidiaries, indicating that it expects to lose the capital.
  • China Southern Airlines has launched direct flights from Nairobi to Changsha. China seeks to expand its base in East Africa and cash in on more revenue in the wake of heightened competition from other players in the market.
  • Hospitality chain TPS Eastern Africa has received waivers from financiers that had lent it 2.5 BN KES (24.5 MM USD) after delays in renovating the company's flagship Nairobi Serena Hotel affected its cash flow. The long-term loans taken by TPS are from Proparco (2 BN KES), Barclays Tanzania (550 MM KES), and Barclays Kenya (970,000 KES).
  • Estonia-based cab hailing firm Bolt has unveiled a service that enables company employees to take rides at the expense of the employer, as it moves to diversify its product offering to grow its revenue streams. The product named Bolt for Business is already available in over 25 countries and rivals Uber4Business.
  • Maternal health services in Tharaka-Nithi County have received a boost after the Safaricom Foundation funded the equipping and renovation of a center.
  • Cytonn Investments announced that 113 luxury units in its high-end development, The Alma, will next week be handed over to owners. The firm plans to complete all 477 units within the next two years.

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