Clamping down on foreigners

Your daily dose of financial news

November 11, 2024

Hello 👋 

It's Brian from The Kenyan Wall Street.

On our top stories today :

🔵 The Kenyan gov't wants to tighten procurement regulations for foreign firms

🔵 Kenya’s forex reserves grew by US$1.97 billion over the last ten weeks.

🔵 Gov't bows to pressure from civil servants to introduce comprehensive medical cover aside from SHIF

🗳️ Parliament to Raise Bar for Foreign Firms Doing Business in Kenya

Parliament wants to amend the Public Procurement and Asset Disposal Act, tightening its provisions around business with foreign firms. Some of the proposals made include :

▶️ Curtail foreign companies from pursuing tender contracts less than KSh 1 bn.

▶️ Penalising foreigners who want to cheat their way around the regulations.

▶️ Blocking shady foreign firms from conducting business in the country.

The amendments will seek to broaden the opportunities for local firms to be awarded tenders.

💵 Kenya’s Forex Reserves Surge to 3-Year High amid Shilling’s Stability

The Central Bank of Kenya (CBK) is on a dollar-buying spree and the foreign reserves are still piling up, thanks to the shilling's stability and increased remittances inflows.

🟢 Forex reserves rose by US$737 million. They now stand at US$9.323 billion.

🟢 Dr. Kamau Thugge, CBK governor, said that the dollar-buying spree was informed by the apex bank’s role of preventing exchange rate volatility.

🟢 Agricultural exports and tourism have also boosted the greenback’s inflows.

🔴 The dollar strengthened last week on the eve of Donald Trump's victory in the US Elections, weakening currencies like the Euro, Yuan, and the Rand.

🩺 Gov’t to Provide Civil Servants Medical Insurance Separate from SHIF

Civil servants in Kenya will be given a comprehensive health insurance cover separate from SHIF if a Treasury draft bill ‘The Public Finance Management (Public Officers Medical Scheme Fund) Regulations, 2024,’ sees the light of day.

🔴 Taxpayers are likely to foot the medical cover for civil servants because parliament will approve allocation of funds to the scheme.

🔴 Civil servants will only utilise the cover only if the range of services offered under the Social Health Authority (SHA) will be exhausted.

🔴 A similar scheme existed under the NHIF since 2012 but elapsed after the SHIF rollout in October, prompting unions of civil servants to give a strike notice demanding the return of the scheme.

Stories you may have missed…

Kenya's Taxing Times: Balancing Economic Recovery and Taxes

Kenya is standing at a critical economic crossroads as the government unveils a fresh series of tax reforms and policy measures.

kenyanwallstreet.com/kenyas-taxing-times-balancing-economic-recovery-and-tax-revenue

Bongani Sithole on 54 Collective's Vision to Redefine Early-Stage VC in Africa

Bongani Sithole says 54 Collective goes beyond simply providing capital, actively helping startups navigate the complexities of scaling.

kenyanwallstreet.com/bongani-sithole-on-54-collectives-vision-for-vc-in-africa

Travel Away 🧳 ⛱️

5 Things To Do In Watamu Beach

Discover 5 unforgettable things to do at Watamu Beach this December from snorkeling in marine parks to sunset dhow cruises.

kenyanwallstreet.com/5-things-to-do-in-watamu-beach

Best Camping Spots in Kenya

Discover Kenya’s hidden camping gems, from the sacred Loita Hills to the stunning Aberdare Ranges. Dive into the stories and histories

kenyanwallstreet.com/best-camping-spots-in-kenya

Video of the Day 

In this episode, our co-founder Eric Asuma sits down with Safaricom CEO Peter Ndegwa to discuss the company’s recent half-year financial results and the impact of Ethiopia’s recent currency devaluation on group earnings.

Have a lovely evening 😊