FINANCE EA DAILY BUSINESS NEW SUMMARY

Taxes MPs approved in changes to Finance Bill

President Uhuru Kenyatta is expected to sign the Finance Bill 2022 after lawmakers approved tax measures aimed at raising the Sh3.3 trillion budget. The Treasury, through the Finance Bill, seeks to generate at least Sh51.6 billion in revenue to finance the budget for the financial year starting July 1.

The National Assembly went on an indefinite recess (Sine Die) pending the August 9 General Election. This means President Kenyatta can only approve a raft of amendments to the Bill.

The Treasury is seeking to raise funding to plug a Sh846 billion budget deficit. MPs amended the Bill to reduce taxes on basic commodities like maize, wheat and cassava flour…BusinessDaily

US starts resetting trade ties with Kenya to reflect Biden priorities

The US government on Monday started reshaping trade deals with Kenya to reflect the priorities of the Joe Biden administration, American officials said. The US and Kenya agreed to discuss an “ambitious” trade arrangement with “high-standard commitments” in key areas including agriculture, digital trade and climate change, the Office of the United States Trade Representative (USTR) announced on Monday.

The USTR stated this after the US Trade Representative Katherine Tai and Kenya’s Trade Cabinet Secretary Betty Maina met on Monday on the margins of the ongoing World Trade Organization’s 12th Ministerial at WTO headquarters in Geneva, Switzerland…BusinessDaily

Uber to raise fares on fuel prices surge

Uber Kenya will increase fares in the next two weeks to calm its army of restless drivers who are demanding compensation for the increase in fuel prices. Uber head of East Africa Imran Manji said the company is working on a price review to factor in the recent fuel rise.

Amid the rising cost of living and stiff competition in the ride-hailing industry, Mr Manji said the company is trying to find a ‘sweet spot between not destroying demand by pricing and ensuring that drivers cover their costs.’

The disclosure follows a rise in fuel prices by Sh9 per litre on Tuesday marking the fourth consecutive increase since February…BusinessDaily

Kenya abandons proposed $1b eurobond citing cost

Kenya has scrapped plans to issue a $1 billion eurobond that was expected by end of June as the rising cost of financing foreign debt coupled with a relentlessly depreciating currency dampened the sustainability of the planned issuance.

Dr Haron Sirima, Director-General at the Public Debt Management Office of the National Treasury told The EastAfrican that the ministry reached the decision “due to high volatility in the international capital markets.” ..The EastAfrican

Centum mulls T-bonds to boost cashflow, cover losses

Centum Investments Company is considering re-investing proceeds of the sale of its shares in Sidian Bank in Treasury bonds in an attempt to recover losses incurred on the transaction and improve cash flow.

Last week, the firm, which is listed on the Nairobi Securities Exchange (NSE), announced it has sold 83.4 percent of its shares in Sidian Bank to a Nigerian lender –Access Bank Plc – in a transaction valued at Ksh4.3 billion ($37.06 million)…The EastAfrican

Long-awaited Africa free trade area takeoff delayed by six states

Six countries drawn from three regional economic blocs are yet to ratify the African Continental Free Trade Area (AfCFTA), delaying its implementation more than a year after it was formally launched in January 2021.

The AfCFTA, a brainchild of the African Union’s integration and prosperity Agenda 2063, was supposed to create one large market for its member states. But more than a year after inception, some countries are still dragging feet in adopting its legal framework in domestic laws…The EastAfrican

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