By gatuyu t.j Presumptive Tax: The Finance Act has scrapped the turnover tax and replaced it with the presumptive tax. The scrapped turnover tax, introduced in the year 2008, was charged on persons who did not meet the VAT threshold to register for Value Added Tax (turnover of below KES 5Million). However, it was optional, … Continue reading Finance Act: Why Presumptive Tax will Fail and Other News

Review of the Finance Act 2018 The Dividend tax account, loathed by accountants and detested by revenue officers, has been scrapped. The Finance Act 2018 has repealed and replaced section 7A of the Income Tax Act which required resident companies that pay dividends to maintain a dividend tax account. Section 7A was unnecessarily prescriptive. It … Continue reading The Death of Dividend Tax Account and Resurgence of Compensating tax

  By gatuyu t.j Section 3 (2) (b) of the Income Tax Act brings to tax income in respect of dividends and interests. The details on the forms of dividends subject to tax is provided for under Section 7, which enumerates events that lead to dividends or deemed dividends. The Finance Act 2018, assented by … Continue reading Taxation of Dividends and Deemed Dividends under the Finance Act 2018

This is the story. Of Joe Wanjoi, and the put option. By now, Old Mutual, a London based underwriter, must be regretting for making a bid to acquire UAP. It was a bad deal, and a swamp for Kenyan billionaires to milk them. When Old Mutual made the first bid, it is Chris Kirubi who … Continue reading How Joe Wanjoi’s Put Option Milked Old Mutual Billions

By gatuyu t.j Why, the market based finance ticks, is the ability to connects firms and households directly through platform. This is opposite of intermediary based finance, where for a household to access funds, they must pass through a financial intermediary, such as banks or assets managers. Peer-to-peer (P2) platforms have become the biggest disruption … Continue reading How Peer-to-peer platforms are disrupting banks

Basel III was formulated to address the issues of under capitalization and illiquidity spirals that triggered the collapse of banks in the great recession.  However, a new financial landscape has emerged, including Fintechs and platform lending. Thus, the systemic risk that was inherent in banks is significantly stymied. Basel III has served its purpose, but … Continue reading The Legacy of Basel III and the case for Basel IV