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Shifting the Burden
Kenya's #1 newsletter among business leaders & policy makers
Hello! It's Brian from The Kenyan Wall Street with the latest edition of our daily newsletter. Below are our stories for the day…
Shifting the Burden : Bolt Drivers to shoulder VAT
Bolt Cab
Ride-hailing giant Bolt Kenya will no longer absorb VAT for its drivers, shifting the 16% tax burden onto them. The company had been covering the tax for over a year but now claims "regulatory clarity" has led to a policy U-turn. Unsurprisingly, drivers—who were already fuming over low fares—are unlikely to take this well. Expect fresh disputes as Bolt touts compliance while drivers count their losses. Will fares rise, or will drivers shoulder the cost? Either way, someone’s wallet is getting lighter.
More updates to come
Today's Poll
Do you think it is fair for Bolt to shift the VAT burden to drivers? |
Carbacid’s BOC Kenya Deal Runs Out of Air
The long-delayed bid by Carbacid Investments and Aksaya Investments to acquire BOC Kenya has officially fizzled out. First floated in 2021, the deal was put on ice for years before finally getting the green light in August 2024—only for the buyers to now ghost the transaction. Carbacid had planned to acquire 100% of BOC Kenya for KSh 1.2 billion as part of its expansion into the industrial gas market. The prolonged legal battle and shifting market winds seem to have sucked the oxygen out of the deal. BOC Kenya, a subsidiary of Germany’s Linde Group, has assured stakeholders it remains focused on business growth. Here is more»»»»»
Kenya's Geothermal Slump
Electricity Generation Mix in Kenya between July and December 2024
Kenya’s geothermal output cooled to 2,875.33 GWh in the second half of 2024, shrinking to 39.81% of the energy mix from 44.55% a year earlier. The dip came as Olkaria I took a breather for rehabilitation, while Ethiopia turned up the voltage with increased electricity exports to Kenya. Hydropower made a splash, climbing to 24.74% of the mix thanks to better rainfall, while wind and solar chipped in at 14.3% and 8.42%, respectively. Electricity imports surged 79% to 751.95 GWh, with Kenya flipping the switch on energy exchanges with Tanzania in December. Meanwhile, total electricity generation rose 6.13% to 7,222.37 GWh, powered by growing demand and infrastructure upgrades. More details here»»»»»
An Overview of HF Group's Financial Performance…
HF Group
🔺HF Group's net profit for 2024 rose by 35% to KES 525 million.
🔺Non-funded income grew by 21% to KES 1.51 billion, while total interest income increased by 23% to KES 6.41 billion.
🔺Total assets expanded by 14% to KES 70.15 billion, and customer deposits rose 9% to KES 47.86 billion.
🔺A 38% oversubscribed rights issue boosted the core capital ratio from 10.5% to 21.4%, strengthening financial stability.
🔻Loan loss provisions increased by 17.8% due to rising NPLs, but HF Group is enhancing risk management and digital banking.
Other Financial Results this week :
More Stories:
Startups. Uganda’s government has proposed to exempt local startups from taxes for the first three years of operations.
Tech. Ghana’s parliament has repealed the Electronic Transfer Levy (E-Levy), a tax on mobile money transactions that had sparked public outcry since its introduction.
Energy. Kenya’s electricity reliability took a hit in the second half of 2024, with system losses averaging 24.2% and power outages lasting an average of 9.15 hours per month
On your watchlist
Success is a flip side of the coin in a failing in business. The only difference is how many times as a businessperson, are you willing to fail, fall, stand-up and try again.