by Ronald Njoroge
NAIROBI (Xinhua) -- Kenya’s tax
revenue jumped to 1.58 trillion Kenyan shillings (15.3 billion
U.S. dollars) for the financial year of 2019, compared to 13.9
billion dollars in the previous period, the tax agency said on
James Githii Mburu, commissioner general of
the Kenya Revenue Authority (KRA), told journalists in Nairobi
that the revenue growth was largely driven by increased taxes
from domestic and customs sectors.
"For the first time in KRA history, domestic taxes collection
exceeded 9.68 billion dollars, while customs revenue exceeded
4.84 billion dollars," Mburu said.
The tax agency attributed the growth of custom revenues to
increased oil import volumes as well as the impact of tax
Mburu said that the exchequer revenue for the 2018/19
financial year grew to 14.3 billion dollars against 12.98
billion dollars collected in the previous financial year.
He observed that corporation tax in the period under review
recorded a slow growth due to a spike in investment tax
In order to boost revenues, KRA has prioritized partnerships
nationally, regionally and globally in order to fight tax
Last year, KRA partnered with the Organization for Economic
Co-operation and Development (OECD), U.S. Department of the
Treasury, Australian Taxation Office, Sweden Tax Agency and the
Inland Revenue Authority of Singapore, he added.
Mburu revealed that Kenya’s goal in revenue mobilization is
to raise the revenue to gross domestic product ratio from 18.3
percent as recorded within the 2017/18 financial year to 19.2
percent by the 2020/21 financial year.
Central Bank of Kenya
warns of unregulated online forex dealers
NAIROBI (Xinhua) --
Kenya’s apex bank on Friday warned the public
against engaging with unlicensed and unregulated online foreign
exchange (forex) dealers and platforms.
The Central Bank of Kenya (CBK) said in a statement that the
platforms are downloadable on Google play and Apple app store,
and are aggressively marketing themselves through social media
and mass emails.
"The purpose of this notice is to warn members of the public
against dealing with unlicensed and unregulated online forex
dealers. They should only deal with genuine and licensed
financial institutions and entities," CBK said.
According to the apex bank, the unregulated entities should
be avoided because they lack adequate anti-money laundering and
consumer protection safeguards.
Kenya has so far licensed two online forex firms to operate
in the country. Online forex trading is based on the trading of
one currency against another with a view to make profit.
Kenya approves issuance of
first Green Bond
by Ronald Njoroge NAIROBI (Xinhua)
-- Kenya has approved the issuance of
the country’s first green bond for student accommodation, the
country’s Capital Markets Authority (CMA) said on Thursday.
It is expected to be issued by Acorn Project Limited
following the launch of the policy guidance note on green bonds
CMA chief executive officer Paul Muthaura said the bond seeks
to raise five billion shillings (48.45 million U.S. dollars) to
finance sustainable and climate-resilient student accommodation
and is structured as a restricted public offer.
"Being a restricted public offer, the issuer will raise the
funds from only targeted sophisticated investors," Muthaura said
in a statement issued in Nairobi.
"The issuance is a critical step in advancing the development
of an effective ecosystem to support the establishment of green
capital markets in Kenya in line with the Marrakech Pledge 2016,
now that the necessary legal instruments are in place to
facilitate such issuances," Muthaura said.
The capital market regulator noted that it was one of the
pioneer signatories to the 2016 Marrakech Pledge.
According to the issuer’s information memorandum, the
fixed-rate bond is certified as a green bond by the Climate
Muthaura added that the sophisticated investors participating
in the green bond will benefit from a 50 percent guarantee on
principle and interest payments from Guarantco, which is funded
by the governments of United Kingdom, Switzerland, Australia,
Sweden and the Netherlands.
The CMA also plans to continue engaging with potential
issuers in order to create a pipeline of green bond issuers to
facilitate effective matching of demand and supply of
green-centric capital and climate-resilient investing
Kenyan bank eyes
representative office in China
NAIROBI (Xinhua) --
Kenya Commercial Bank (KCB) group plans to apply to Chinese
authorities to open a representative office by end of October,
an official said on Thursday.
Lawrence Kimathi, chief finance officer KCB Group, told
Xinhua in Nairobi that the office, which will be based in
Beijing, will be one of the first by an east African bank in
"The representative office in China will have a trade focus
and act as a liaison for entities trading between Kenya and
China," Kimathi said.
The proposed Beijing office will not undertake any banking
activities but will seek to provide a platform for Chinese
investors who want to establish presence in Kenya, he said.
According to the KCB Group, in the first six months of this
year, its after-tax profit rose 5 percent to reach 12.7 billion
shillings (about 122 million U.S. dollars).
In addition to Kenya, the KCB Group now has presence in
Uganda, Tanzania, Rwanda, Burundi, South Sudan and Ethiopia.
Kimathi said the macroeconomic indicators in most of the
seven countries are showing improvement.
"This has contributed to our international bank subsidiaries’
continued good performance, with all but one of the businesses
delivering high double-digit earnings growth," he said.
"This growth has been driven by balance sheet momentum with
loans and advances registering a 23 percent growth."
KCB Group chairman Andrew Kairu said the bank is seeking to
expand into additional countries in east and central Africa.
"Previously our expansion outside of Kenya was through
establishing new operations, but going forward, we will expand
our regional presence through mergers and acquisitions of
existing banks," Kairu said.