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KRA appealed the Court of Appeal decision blocking the implementation of minimum tax
The Kenya Revenue Authority (KRA) filed an appeal to the Supreme Court to overturn a ruling that declared the minimum tax unconstitutional. The taxman filed a notice of appeal declaring their intention to challenge the decision by the Court of Appeal to uphold the ruling that declared minimum tax illegal.
The Court of Appeal upheld the High Court’s decision saying that the tax was based on a wrong assumption that all loss-making firms were evading taxes
The minimum tax is based on gross turnover and not gains or profits, and all businesses, even those in a loss-making position, are required to pay.KRA’s push is aimed at protecting an estimated Ksh 21 billion that it hopes to raise every year through collection of minimum tax.
CAPITAL MARKETS
1. NSE extended the suspension of KQ shares from trading
Kenya Airways (KQ) share trading has been dropped from the Nairobi Stock Exchange for a further 12 months to enable the firm to complete the operational and restructuring process.
The suspension was approved and issued by the Capital Markets Authority (CMA) pursuant to section 11(3)(w) of the Capital Markets Act and regulation 22 of the Capital Markets (Securities) (Public Offers, Listings and Disclosures) Regulations, 2002.
Kenya Airways’s shares have been suspended for the third time. The first suspension occurred in July 2020, when MPs began a review of the law to allow the state to take over the airline. In 2019, lawmakers approved the Treasury’s plan to nationalize the airline
2. Transcentury Rights issue
Kuramo Capital is set to increase its ownership of Trancentury to over 50% by spending Ksh1.1 billion on the Trancentury rights issue
Kuramo Capital, a private equity firm, plans to increase its stake in the company to more than 48%.
Kuramo currently owns 25% of the infrastructure investment firm (93.7 million shares) entitling it to purchase 468.8 million additional shares at the set price of Ksh 1.1 per share.
This amounts to a Ksh 515.7 million investment in the cash call under normal entitlement, which will defend its stake in the company.
Kuramo has indicated its intention to acquire rights passed up by other shareholders, a move that will significantly increase its ownership in TransCentury.
This information was disclosed in an information memorandum published in conjunction with the cash call.HEALTH
Kenya misses its Covid-19 vaccination target
Kenya missed its Covid-19 vaccination target for 2022 by 4.1 million doses. This was attributed to the struggle by the Ministry of Health to convince the unvaccinated to get the vaccine.
The government had planned to vaccinate at least 27 million adults by December 31, but did 23 million by December 15.
18.4 million were given to those 18 years and above, 2.8 million for 12 years to below 18 years and 1.8 million were booster jabs.
The ministry of health reported thousands of vaccine doses going to waste across the country. The Covid Vaccine Deployment Taskforce records show that more than 843,000 doses have expired.
COMPANIES
Ksh 8.7 billion fuel supply deal won by Rubis Energy was nullified by the Procurement tribunal
The Public Procurement Administrative Review Board (PPARB) nullified a Ksh 8.7 billion fuel supply deal won by French oil marketer Rubis Energy.
Why the supply deal was nullified
The board discovered that Kenya Power used an electronic procurement system that locked out Galana Oil Kenya Ltd minutes before the tender document submission deadline.
The deadline for submitting tender documents, according to the ruling, was November 23, 2022, at 10 a.m. But Galana was unable to access KPLC’s e-procurement system on the said date from 9.42 am to 9.59 am.
Kenya Power was unable to explain the technical failure of the electronic procurement system known as the “KPLC SAP tendering portal”.
As per the tender, Rubis Energy Kenya Plc would have supplied at least 53 million litres of diesel to 30 off-grid power stations in northern Kenya over a two-year period under the contract.What next?
The Public Procurement Administrative Review Board (PPARB) ordered Kenya Power to re-advertise the tender and begin a new procurement process.
ENERGY
Ken Gen to increase Renewable energy deployment in Kenya
KenGen announced plans to increase renewable energy deployment in the country, adding 3000 megawatts (MW) from clean energy sources to the grid as it seeks to diversify away from costly thermal sources.
According to the company, this new operation will be primarily driven by deploying up to 2000MW of baseload power drawn from geothermal and hydro sources to stabilize the country’s energy sources.
The company will also look to leverage the vast potential of geothermal energy in the Rift Valley region, which is estimated to be 10,000MW of clean and renewable energy.
Ag. Managing Director and CEO Abraham Serem stated that the company would seek to reconstruct its existing power plants to make them more efficient for long-term generations.
TECH
Nairobi to host the Africa Tech Summit 2023
Africa Tech Summit, the leading tech conference focused on connecting businesses and driving investments within Africa’s tech ecosystem, will host its fifth edition on the 15th to 16th of February 2023 at the Sarit Expo Centre in Nairobi.
The Summit connects tech leaders and stakeholders, including investors, corporates, mobile operators, fintech, DeFi and crypto ventures, start-ups, developers, regulators, and policymakers to do business across the continent.
The 2023 summit will host three tracks; the Africa Money & DeFi Summit, the Africa Startup Summit and the Africa Mobile & App Summit, which brings together tech players from across the continent.
WHAT YOU MIGHT HAVE MISSED
Flame Tree Group Holdings Limited issued a profit warning.
Flame Tree Group Holdings Limited issued a profit warning, anticipating at least a 25% decline in full-year profit for the year ending December 2022.
The maker of beauty products, including creams, nail polish, lotions, and moisturizers blamed the drop in earnings on the increase in raw material prices, inflation, global supply chain disruptions, and depreciation of local currencies against the US dollar.
Safaricom’s Chairman Resigned After 5 Months in Office
Safaricom plc chairman, John Ngumi, resigned from the company this week after only five months in charge. The company stated that Mr. Ngumi resigned in order to focus on green energy projects across Africa.
Safaricom Ethiopia expanded the country’s network footprint to 21 cities
Safaricom Ethiopia’s current network footprint across the country is 21 cities: Dire Dawa, Harar, Haramaya, Adama, Bahir Dar, Bishoftu, Mojo, Debre Birhan, Awoday, Gondar, Addis Ababa, Sebeta, Dessie, Kombolcha, Jimma, Shashemene, Dilla, Sodo, Jigjiga, Assela, and Hawassa.
Safaricom’s expansion strategy: The company has been engaging customers on its products and services through Below-The-Line (BTL) activations in all 21 cities, including universities, open markets, distributor shops, and roadshows, in line with network expansion.