Category: East Africa
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Kenya: Processors avoid duty-free milk import window
The high cost of powdered milk in the international market has seen processors stay away from importation even after a duty waiver, forcing the government to extend the window by two months. Agriculture Cabinet Secretary Willy Bett says the extension is to allow processors seek competitive prices in alternative markets and ship in the 9,000…
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Kenyan products blocked as Tanzania ignores trade truce
The long-running cross-border trade spat between Kenya and Tanzania has resumed barely four days after the two countries signed a pact removing restrictions that had cost traders billions of shillings by the time it was resolved last Sunday. The Kenya Association of Manufacturers (KAM) yesterday said Tanzania had maintained a number of restrictions that existed…
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Tanzania: Acacia Shares Fall to 3yr Low As Row With Tanzania Grows
Acacia Mining shares plunged to a more than three-year low yesterday after the Tanzania government demanded the company to pay almost $190 billion (Sh424 trillion) worth of unpaid taxes and fines. The London Securities Exchange (LSE)-listed equities tumbled as much as 17 per cent yesterday morning after it said it had received a series of…
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New oil reserves to account for 4% of Ugandan economy
Uganda’s new-found oil reserves may account for as much as 4 percent of its economy annually in coming years if managed well, the International Monetary Fund’s country chief says. IMF Mission Chief for Uganda Axel Schimmelpfennig writes in a blog post that the country also needs some strategic infrastructure investment and better debt management. Uganda’s…
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Prepare for post-Brexit, think-tank asks Kenya
Kenya should set in motion plans for engaging Britain over post-Brexit trade arrangements to avoid shocks to fresh produce exporters, and likely fall in official development funds, a governments policy think-tank has recommended. The Kenya Institute for Public Policy Research and Analysis (Kippra), Tuesday said the country will be among those hardest hit when Britain…
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Tanzania tax row knocks Acacia Mining shares
Acacia Mining’s shares fell for a sixth straight session on Tuesday, a day after the gold miner was hit with a tax bill of more than $190 billion by the Tanzanian government. Shares in the London-listed miner closed 8.5 percent lower at 169 pence, having had more than two-thirds wiped of their value since a…
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Kenya: T-bill uptake plunges as subscribers go for bonds
Treasury bills were for the second week running under-subscribed due to reduced liquidity in the market. During last week’s auction, the overall subscription fell to 31.25 per cent from 33.6 per cent recorded the previous week. Market analysts said this was triggered by investors shifting focus to the Sh30 billion 10-year bond currently on offer.…
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Kenyan insurance brokers hit by Tanzania’s two-thirds rule
Kenyan insurance brokers operating in Tanzania will be forced to cede shareholding to locals under a new law which cut by half the ownership quota allowed for foreigners. Fresh amendments to the Insurance Act sets the mandatory stake that must be held by Tanzanian citizens to be at least two-thirds from the initial one-third or…
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East Africa: KLM now demands pay freeze at KQ
Kenya Airways’ employees are set to endure a pay freeze in the next couple of years if their employer accepts the stringent conditions that one of the major shareholders KLM wants meeting before it can inject fresh capital into the ailing business. The Dutch carrier has sought KQ’s commitment that it will keep employee costs…
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Tanzania’s President Magufuli threatens to close mines if talks delayed
Tanzania’s President John Magufuli has threatened to close down all gold mines in the country if mining companies delay talks with his government aimed at resolving allegations of tax evasion. The announcement by Magufuli, nicknamed “the Bulldozer” for his forceful leadership style, marks a further escalation of a dispute with foreign companies like Acacia Mining…