By Purity Ngigi- Sundays In the wake of technology and innovation, there has been the reception of digital payment methods and virtual currencies such as cryptocurrencies, stable coins, Central Bank Digital Currencies (CBDC), and electronic money have been in the global market. Many countries are slowly including virtual currency as part of their legal tender....
By Matthew Magare Through a press release dated 7th August 2020 the Central Bank of Kenya (CBK) announced acquisition of 90% of Jamii Bora Bank Limited (JBB) by the Cooperative Bank of Kenya Limited (Co-op Bank), effective 21st August, 2020. JBB was established in 2010 following the merger of a bank and a microfinance institution....
By Victor Orandi, Elainer Mogoa The Finance Act 2020, (the Act) was enacted into law upon assent on 30th June 2020. The Act introduced a new digital service tax to be payable by a person whose income arises from the provision of services derived from or accrues in Kenya through a digital marketplace at the...
By Moses Ohanga As businesses worldwide navigate the challenges brought on by the rapid spread of COVID-19 (coronavirus), it is now more essential than ever that corporations be ready with solutions to address risk issues as they arise. Beyond the obvious health repercussions, the global pandemic has presented major disruptions for global businesses. Some have had...
By Anita Otieno The Finance Bill, 2020 was signed into Law in June to amend a number of laws in Kenya, including the Income Tax Act, the Value Added Tax Act, the Excise Duty Act, the Tax Procedures Act and the Miscellaneous Fees and Levies Act among others. The Bill was recently signed into Law....
By Matthew Magare, Anita Otieno The Financial Markets Conduct Bill aims to promote a fair, non-discriminatory financial market, conducive for credit access by: Establishing uniform practices and standards for providers of financial products and services; Regulating the cost of credit; and, Establishing the Financial Markets Conduct Authority (the “Authority”), the Financial Sector Ombudsman and the...
A. CORPORATE AND COMMERCIAL The Companies Act The stake required for an acquiring party to purchase, before enforcing a squeeze-out, has been restored to 90% from the current stake of 50%. This increase in the squeeze-out threshold seeks to restore the protection of the rights of minority shareholders, especially in listed companies. Companies no longer...
The key reforms introduced by the CRB Regulations on 14th April 2020 include: A minimum threshold of Ksh.1,000 has now been set for negative credit information submitted to CRBs by lenders. Borrower’s information regarding non-performing loans of less than Ksh.1,000 will therefore not be submitted to CRBs, and borrowers that were previously “blacklisted” only for...
By Victor Orandi and Matthew Magare In Kenya, ultra high net-worth individuals are defined as those having a net worth of more than Ksh. 3 billion. In 2018, the number of such individuals increased to 125. Meanwhile, by 2023, a 24% increase is expected amongst those whose worth exceeds Ksh. 100 million.[1]It is estimated that...
Unfortunately whenever civil society and government strike discussions on human rights a certain unease sets in. The mood quickly dampens. On one hand, government mounts a defensive posture and on the other, civil society embarks on an offensive strategy. This gets worse when you throw in the word taxation. Like a spark to an inflammable...
