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The bitter sugar levy
Kenya's #1 newsletter among business leaders & policy makers
Howdy 👋🏿
It's Brian.
In today's newsletter, I would like to share my top business stories for the day…
🍚 Why you'll soon pay more for sugar
🥛 What the government plans to do for dairy farmers
📈 Adani’s nightmare, Hindenburg Research, goes bust…
Also, the road to peace in the middle east could be reopened with the ceasefire deal between Israel and Hamas.
Top Stories
Looming Hike in Sugar Prices as Millers Face 4% Levy in February
By Brian Nzomo
A warehouse with bags of sugar
The Sugar Bill signed into law by President William Ruto in November last year was a Trojan horse for the 4% Sugar Development Levy that will most likely be transferred onto consumer prices.
🔸The 4% Sugar Development Levy for the value of both domestic sugar and the Cost Insurance Freight (CIF) value of the imported sweetener will be channeled to different infrastructural and labour support programs in the sector.
🔸The levy plus the hiked excise duty of 7.5%, which initially stood at 5% and was increased in the Tax Laws Amendment Act, will see price hikes at the retail level, which will undoubtedly affect demand.
Today's Poll
Do you think the new sugar development levy will achieve its aim in revitalizing the Kenyan sugar industry? |
Yesterday's Poll Results
What are your expectations for the property market this year?
There was a tie between ‘fair’ and ‘good’
Kenya’s Targets 6bn Litres Milk Production in 2025
Milk
Kenya is targeting above 6 billion litres of milk production and an additional 108,500 metric tonnes of red meat by the end of this year.
🔸Milk production increased 14 percent from 4.6 billion litres in 2022 to 5.2 billion litres in 2023.
🔸The Kenya Animal Genetic Resource Centre provided farmers with 900,000 doses of bull semen with the aim of increasing production and productivity.
🔸Part of the plans include the controversial National Vaccination Programme to eradicate the Peste des Petits Ruminants (PPR) disease and control the Foot and Mouth Disease.
🔸Treasury plans to make additional investments to support the sub-sector, as part of reinvigorating a vital value chain with a quick turnaround impact on households and the economy.
🔸So far, this has included funding the new KCC by Ksh 3 billion to ensure farmers are paid on time, and maintain a high price of Ksh 50 per litre.
Hindenburg Research, US Short Seller Behind Adani Sell Off, to Shutdown
Hindenburg Research
Hindenburg Research, the US short seller whose targeted reports have caused severe market value losses, has been disbanded after 7 years of operation, Founder and CEO Nathan Anderson said in a statement.
🔸The research firm gained prominence in Wall Street for exposing alleged corporate fraud and misrepresentation through detailed reports.
🔸In January 2023, the short seller published a targeted report against Adani Group accusing the conglomerate of stock manipulation and accounting fraud – “pulling the largest con in corporate history.
🔸The report was relied upon by opponents of the Adani proposed JKIA takeover and KETRACO projects.
🔸The Hindenburg shutdown saw Adani Group shares surge 9% on Thursday – 2 years after fueling a US$100 billion share selloff in the Indian conglomerate’s market value.
“Short selling is a strategy where traders profit from a decline in the price of an asset, often a stock.”
More Stories for you
Video of the Day
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The bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen
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Bonsoir! 🙂