Category: East Africa

Heated debate on the 18 per cent Value Added Tax (VAT) on tourism services and transit cargo was yesterday closed, with President John Magufuli strongly backing the new charges. The president said the government was determined to exhaust all available sources in its quest to increase revenues to fund development projects. “It’s better to have…

The Kenya Electricity Generating Co (KenGen) has finally switched off Aggreko’s costly emergency power from the national grid after twice seeking extensions to the contract which expired last week. KenGen’s 30-megawatt gas turbine — which replaced the Aggreko’s diesel-fired Muhoroni temporary power plant — began supplying to the grid last Wednesday. The Energy Regulatory Commission…

Nearly Sh3 billion meant for the construction of roads in the financial year ended June 2015 has gone missing, turning the spotlight on spending in the Ministry of Transport and Infrastructure that receives the largest allocation of public funds every year. Auditor-General Edward Ouko says the department failed to explain the whereabouts of Sh2.6 billion…

The Central Bank of Kenya is too stretched to deal with potential future banking crisis, a senior Moody’s official has warned. Vice president and senior sub-Saharan Africa banking analyst at Moody’s Financial Institutions Group Akin Majekodunmi Thursday said there is urgent need to revamp the regulator’s capacity to monitor and also handle potential future banking…

The Kenya Bureau of Standards (Kebs) has seized 1.2 million Royal Philips-branded light bulbs declared substandard because they failed to meet the durability and output specifications stated by their makers. The bulbs, estimated to be worth Sh50 million, were seized from one of the 13 companies that import the products following persistent consumer complaints on…

New vehicle sales dropped 29.1 per cent in the first half of the year in what dealers attributed to increased taxes which made them more expensive and subdued demand. Data from the Kenya Motor Industry Association (KMI) shows that sales in the period stood at 7,154 units compared to 10,009 a year earlier. The sales…

The military clash in South Sudan has hit a number of Kenya-based cargo firms, forcing them to suspend their operations to the world’s youngest nation. A day after the national carrier Kenya Airways announced cancellation of its flights to Juba, Astral Aviation and Siginon have both suspended their operations to South Sudan citing concerns over…

Construction and hospitality sectors have been ranked worst performers in Rwanda Revenue Authority (RRA) tax compliance survey. Speaking at a news conference in Kigali, yesterday, RRA commissioner-general Richard Tusabe attributed the poor performance to “the prevailing culture of informal employment that leads to tax evasion through non-payment of Pay As You Earn (PAYE) tax. The…