Market turnover at Nairobi Securities Exchange ticked up slightly from the previous session to 2.5 billion shillings which is seen as the continued reaction of the CBR cut to 9 percent.
Most of the demand was on Infrastructure bonds (IFB) and 10-year papers. Fund Managers and Banks are still demanding short-term papers.
The interbank rate rose to 8.5 percent from 8.1 percent previously as volumes ticked up from 6.7 billion shillings to 8.0 billion shillings. The shilling continued to hold at 100.4 supported by increased diaspora remittances.
Finance Bill Enters 2Nd Reading
According to the National Assembly’s schedule, the second reading of the Finance Bill 2018 is due Thursday and on Tuesday 7th August 2018.
Treasury had gazetted the Provisional collection orders on June 14th according to Section 2 of the Provisional Collection of Taxes and Duties Act.
The Legal Order effectively allowed the provisional collection of taxes relating to Income Taxes, Value Added Tax, Excise Duty and Miscellaneous Fees & Levies; pending the approval of the Finance Bill 2018.
The National Assembly approved the Legal Notice on July 5th paving the way for provisional collection of taxes in FY2018/19. However, the High Court suspended the implementation of the Legal Order following a successful petition by activist Okiya Omtatah.
After the second reading, the Department Committee on Finance and National Planning will offer its consideration with the key focus being the repeal of the interest rate law