KES 2.1 trillion 2015 national budget to be funded by tax revenue

Secondary Market: Trading in the secondary market stalled yesterday as all eyes were pegged on the budget announcement for FY 2015/2016. Bond turnover contracted to KES 261.9 million with only 8 bond deals transacted.

The Treasury Secretary yesterday announced that the Controversial 5% Capital Gains Tax will be dropped in favor of 0.3% withholding tax on the transaction value. The record KES 2.1 trillion 2015 national budget is expected to be funded by tax revenue worth KES 1.4 trillion up from KES 1.16 trillion in 2014/15.

Money Market: The monetary regulator intervened in the market to offer TADs and REPOs worth KES 5 billion as liquidity eased. The Kenyan Shilling traded on a stable ground during Thursday’s trading session reporting gains against major international and regional pairs.

Upcoming Auctions

• 17th June 2015 – KES 3.0Bn 182 & KES 4.0BN 364-day T-bills

• 18th June 2015 – KES 1 Bn 91 day T-bills