Duncan's Feed
Jun 19, 2013

Kenya dismisses investor worries over capital gains tax plan

NAIROBI, June 19 (Reuters) – Kenya sought to assuage
concerns over a planned review of capital gains tax, saying it
was too early to say what asset classes will be targeted in a
measure aimed at compelling the rich to fund development.

Finance Minister Henry Rotich told lawmakers in his budget
speech last week there would be a review of the tax, suspended
in the 1980s, to allow the wealthy to make a token contribution
to the development of the country.

Jun 14, 2013

Kenya Airways sees peace, cheaper oil restoring profit

NAIROBI, June 14 (Reuters) – Peaceful elections, lower oil
prices and the easing of tensions in neighbouring Somalia should
help Kenya Airways recover from a tough two years that
saw it swing to a pretax loss in the year ended March, it said
on Friday.

The airline, which is 26.73 percent owned by Air France KLM
, reported a pretax loss of 10.83 billion shillings
($126.8 million) for the period. That followed a 57 percent drop
in pretax profit the previous year.

Jun 13, 2013

East African states raise taxes to fund growing budgets

NAIROBI, June 13 (Reuters) – Kenya will ask for more cash
from its wealthy citizens through a capital gains tax while
Uganda will increase taxes to make up for falling donor support,
the finance ministers of both states said in budget speeches.

East African states have attracted higher foreign
investments in recent years due to robust economic growth rates,
but decades of bad management of public resources have left them
struggling with rampant poverty and unemployment among citizens.

Jun 4, 2013

Kenya central bank sees credit growth gathering pace

NAIROBI, June 4 (Reuters) – Kenya’s central bank expects
commercial lending rates to fall and the pace of private sector
credit growth to pick up this year as the economy rebounds from
an election-related slowdown, its governor said on Tuesday.

An aggressive tightening of monetary policy to tackle
rampant inflation that began in mid-2011, and a slowdown in
economic activity ahead of the presidential vote in March saw
annual credit growth fall to about 12 percent in February from
35 percent in late 2011.

May 23, 2013

Rebound in key sectors seen driving Kenya economy in 2013

NAIROBI, May 23 (Reuters) – Kenya’s economy is expected to
expand by about 6 percent in 2013 thanks to a rebound in sectors
such as manufacturing and financial services, officials said on
Thursday.

The country’s $35 billion economy expanded by 4.6 percent
last year, only a touch more than in the previous year, as
activity was slowed by high costs and political uncertainty.

May 21, 2013

More credit data sharing seen lowering rates for Kenyan firms

NAIROBI, May 21 (Reuters) – Banks in Kenya are making a
long-awaited effort to share information about which borrowers
are reliable, a move that should make it easier for sound
businesses to get cheaper loans.

The initiative will extend information shared by banks to
include borrowers who repay on time rather than only data on
defaulters, a Kenyan credit bureau said on Tuesday.

May 17, 2013

Kenya’s National eyes funding in fight for market share

NAIROBI, May 17 (Reuters) – National Bank of Kenya
will raise more than 10 billion shillings ($119.3 million) in a
cash call next year to fund expansion and increased lending, its
chief executive said.

Ranked number 12 out of 43 lenders in east Africa’s biggest
economy, National declined from a top-three lender in 1996, as
its model of focusing on government banking and personal lending
was upended by newer, nimbler rivals like Equity.

May 14, 2013

Non-voice revenues drive Safaricom profit surge

NAIROBI, May 14 (Reuters) – A strong performance in its
money transfer service and non-voice revenues helped Safaricom
, Kenya’s top telecoms operator, post a 47 percent jump
in full-year pretax profit on Tuesday.

Safaricom, 40-percent owned by Britain’s Vodafone,
said pretax profit climbed to 25.5 billion shillings ($304.30
million) off the back of a 16 percent growth in total revenues.

Apr 23, 2013

Power cuts, bureaucracy and borrowing costs shackle Kenyan economy

NAIROBI, April 23 (Reuters) – From his leather chair in the
boardroom of Jamii Bora bank, Sam Kimani looks out over Kenya’s
booming capital city and laments the bureaucracy and power cuts
that drive up business costs and choke the supply of new homes.

He points through the window at the stand-by generator that
is an inevitable expense in east Africa’s biggest economy, and
he explains how the difficulties of tracking down land ownership
documents perpetuate Kenya’s housing shortage.

Apr 11, 2013

Kenya’s Housing Finance eyes more funding

NAIROBI (Reuters) – Kenya’s Housing Finance (HFCK.NR: Quote, Profile, Research, Stock Buzz) is looking to raise more funds in the second half of this year and increase mortgage lending as it expects last month’s peaceful elections to spur demand for houses.

Kenya’s second biggest mortgage lender said it would finalize plans for more funding in the next few months, having sold the last tranche of a 10 billion shillings ($118.5 million) bond last year.