Sugar miller Mumias has resumed operations after a two-month break in a move that is expected to raise the depleted national stock of sugar. The miller says it is producing up to 500 tonnes of the sweetener in a day from a low of 200 tonnes before breaking for maintenance. It has a daily production capacity of about 800 tonnes, making it the largest sugar factory in the country.
BAT, anti-tobacco lobby oppose new cigarette tax
Kenya’s largest cigarette manufacturer and an anti-tobacco lobby have closed ranks to oppose new excise tax rates they say will only reduce government revenues. The parties, who are normally on opposing sides, say Parliament’s amendment of the Excise Duty Bill, 2015, has in effect made it difficult to tax cigarettes. British American Tobacco (BAT) Kenya say the new proposals make tax computation difficult, less transparent and will end up reducing revenues for the Treasury
Equity picks a new fight with Safaricom over M-Pesa fees
Equity Bank Group has written a protest letter to the Central Bank of Kenya (CBK) objecting to Safaricom’s intended increase of charges on bank – to – Mpesa transfers, which once effected will raise fees charged on Equitel — its mobile banking service. Safaricom has been charging banks a flat rate of KES 33 for customers who move money from their bank accounts to their own M-Pesa accounts or those of third parties.
Safaricom downplays Airtel’s 4G licence fears
Safaricom says it will be obligated by the industry regulator to share capacity on its 4G network at a fee, responding to fears from Airtel which wants the telecoms regulator to stop planned commercial launch of the service before the sharing agreement is signed. Safaricom said the sharing agreement would be part of the licensing conditions and that the model of sharing has not yet been agreed upon. Communications Authority of Kenya (CA) said the model would be wholesale based, where Safaricom’s rivals would ride on its 4G network to offer the service.
Barclays raises ATM deposit to KES 120,000
Barclays Bank has upgraded its ATMs to allow both account holders and non-customers to make cash deposits in real-time. Those using the new system can deposit up to KES 120,000 per transaction in batches of KES 40,000 and can make as many transactions as they wish per day, making it ideal for small and medium-sized enterprises. The latest capability brings Barclays’ cumulative investments in the upgrade of its ATMs to KES 500 million since November 2013 when the real-time cash deposits was launched
Kenyan Stock Market
The NSE 20 and NASI index inched up 0.80 percent and 2.75 percent w/w to close at 4,134.41 and 144.04.
Turnover, total volumes traded and total market capitalization stood at 2,453.01mn, 71.67mn and KES 2,023.10 respectively at the end of the week.
EAC Markets
Uganda: The USE ALSI and USE LSI gained 3.69 percent and 0.70 percent w/w respectively to close at 1,845.53 and 351.46
Rwanda: The RSE ALSI and the RSE RSI declined 0.43 percent and 2.32 percent w/w respectively to close at 141.39 and 191.09
Tanzania: The DSE TSI and DSE DSEI index went up 0.73 percent and 0.56 percent w/w respectively to close at 4,650.42 and 2,498.01.
Global markets
Investors turn to Friday’s release of a key U.S. jobs report that could help determine whether the Federal Reserve raises short-term interest rates this month. The Dow Jones industrial average added 23.38 points, to 16,374.76. The Standard & Poor’s 500 index rose 2.27 points, to 1,951.13. The Nasdaq composite fell 16.48 points, to 4,733.50.
European stocks closed sharply higher Thursday after the head of the European Central Bank said he is ready to pump more stimulus into the Eurozone economy as needed. The Stoxx Europe 600 rose 2.4
percent to finish at 362.24.
Asian stocks fell ahead of the monthly U.S. jobs report, with the regional gauge on course for a seventh week of losses as energy and consumer shares slumped. The MSCI Asia Pacific Index declined 1.00
percent to 124.87.