Author: Muindi

The Capital Markets Authority (CMA) has greenlit new trading rules for 2024 at the Nairobi Coffee Exchange (NCE). These regulations aim to streamline operations and create a fair playing field for all licensed participants in the coffee value chain. Key Changes to the NCE Trading Rules 2024 The rules have introduced penalties for violations to deter misconduct during coffee auctions. Users, brokers, and buyers who break the rules risk losing their trading licenses. Mandatory implementation of the Direct Settlement System (DSS) for coffee transaction settlements. This ensures a dedicated account for managing coffee proceeds and facilitates timely payments to growers.…

The Kenyan High Court has ruled that golf clubs and similar recreational clubs are exempt from paying Value Added Tax (VAT) on membership fees and entrance fees. Justice Nixon Sifuna distinguished between “capital” (club funds) and “income” (profit from services). Membership fees are considered contributions to maintain club facilities, not payment for services, and thus not subject to VAT. Clubs Challenged Tax Demand The Kenya Revenue Authority (KRA) had demanded VAT on membership fees from several clubs, including Sigona Golf Club and Thika Golf Club. However, the clubs argued they were exempt as non-profit organizations. The Tax Appeals Tribunal sided…

Money sent home by Kenyans living abroad has surged by 12.9 per cent, reaching Ksh586 billion by June 2024. This marks a significant rise from the Ksh519.1 billion recorded in June 2023, according to the latest data from the Central Bank of Kenya (CBK). The remittances over the 12 months have jumped by Ksh66.936 billion. “The cumulative inflows for the 12 months to June remained steady at USD 4,535 million (about Ksh586 billion) compared to USD 4,017 million (about Ksh519.1 billion) in a similar period in 2023, an increase of 12.9 per cent,” stated CBK in its weekly bulletin on…

The Kenya Association of Manufacturers (KAM) has appointed Jane Karuku, Managing Director of East African Breweries, as its new chairperson for a two-year term. Previously serving as Vice Chairperson since July 2022, Karuku succeeded Rajan Shah and aims to build upon KAM’s purpose of promoting sustainable industrialization for national prosperity. “We have a lot of work to do to grow manufacturing’s contribution to Kenya’s GDP to 20% by 2030,” Karuku acknowledged. Her focus will be driving industrialization, expanding KAM’s membership, and fostering collaboration with all stakeholders. “Our primary goal is to make industrialization more significant in Kenya through KAM,” she…

Kenya’s office market rebounds, mirroring a trend across Africa. Knight Frank’s report shows the continent’s average office vacancy rate at 25%, down from 40% in 2022. This improvement is attributed to employees gradually returning to offices after the COVID-19 disruption. The rise in demand is particularly noticeable for flexible workspaces like co-working spaces (shared office environments with flexible leases). Developers are expanding co-working options in Kenya, especially in Westlands, the country’s primary office hub. This trend is driven by occupiers’ preference for flexibility and coincides with the arrival of new co-working operators like Regus, Spaces, and Ikigai in the Westlands.…

Absa Bank Kenya has partnered with Old Mutual Group to offer a comprehensive insurance solution, Linda Biz, specifically designed for Small and Medium-Sized Enterprises (SMEs). This bundled insurance package provides SMEs with affordable access to extensive protection for business assets, risk mitigation, employee health coverage, and seamless business continuity. Linda Biz covers losses due to fire, political violence, riots, floods, business interruption, burglary, theft, and employee dishonesty. It also offers employee health coverage with various options, including inpatient care. Additionally, Linda Biz includes life insurance that pays a lump sum in case of death, disability, or critical illness. Both Absa…