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[li]Wealthy Kenyans have traditionally stashed wealth abroad to either escape the taxman’s scrutiny or to spread their risks by investing in the more politically and economically stable Western democracies.[/li][li]A report by an American think tank, the National Bureau of Economic Research (NBER), last year revealed that Kenya’s super-rich were holding more than Sh5 trillion in offshore tax havens across the world.[/li][li]Another international report released in 2007 detailed how a corrupt network in the Moi administration looted at least Sh130 billion and stashed it abroad, including in the United Kingdom and South Africa.[/li][li]The report by risk advisers Kroll and Associates was commissioned by the then President Mwai Kibaki’s administration.[/li][/ul]
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Wealthy Kenyans have wired back an estimated Sh1 trillion from offshore accounts in the past three years, taking advantage of a tax amnesty offered by the Treasury.
The Kenya Revenue Authority (KRA) in a response to Business Daily queries said the amount was repatriated by some 16,000 applicants who took advantage of the amnesty window during which they were not required to declare the source of their wealth or even account for previous years’ tax arrears.
The amnesty, which was announced by Treasury Secretary Henry Rotich in 2016, is set to close next month.
“We have received over 16,000 applicants with the amount repatriated so far at Sh1,014,058,103,551. The incentive was meant to encourage Kenyans to repatriate their wealth back to the country for purposes of development,” said KRA in a statement.
The amount wired back is more than one-third of Kenya’s annual Budget.
Considering that we are not a mineral economy, how did they get all this money? If it was obtained from business operations, would it not be logical to use it to do more business rather than store it abroad? Supposing it was made from business operations, what does it take to skim such profits from a third-world market? Or maybe the money was obtained from corruption.
And they have no shame to prove the phasing out is to catch them pants down with their loot hidden under mattresses…
[SIZE=7]Ruto’s Allies Fault CBK’s Deadline To Phase Out Old Ksh1000 Notes[/SIZE]
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Team Tangatanga has faulted October 1 deadline set by the Central Bank of Kenya to phase out old Ksh1000 banknotes.
Speaking during a church service in Kahawa Wendani where they had accompanied Deputy President Ruto on Sunday, legislators led by Kimani Ichungwa said the deadline should be revised.
This is following a directive by the CBK on Saturday to make current Ksh1000 notes obsolete on October 1.
The directive by CBK Governor Patrick Njoroge is expected to disrupt illicit financial flows.
The Kikuyu MP said in order to fast track acquisition of money stashed in people’s houses, the deadline should be moved to July 1.
He argued that the October deadline is quite far, adding that the money should be released to develop the economy.
“The Central Bank Governor said we have four months up to October. In my opinion that it to far away. Kenya’s financial year starts in July so if it is possible, the president should make that the deadline for the validity of the Ksh 1000 notes,” Ichungwa said.
He noted that increased liquidity would enable payment of pending bills as directed by President Uhuru Kenyatta.
The sentiments were shared by a number of other leaders who graced the church service.
[ATTACH=full]240994[/ATTACH] President Uhuru Kenyatta and ODM leader Raila Odinga are leaving the country for foreign working trips. Whereas President Uhuru is headed to the North American country of Canada, Raila leaves for Europe where he will visit the UK and Russia, visits expected to last slightly over a week.
In his speech during the Madaraka Day fete, President Kenyatta directed ministries and government agencies to settle pending bills that do not have audit queries by June 30.
The Head of State noted that the pending bills have soured relations between investors and the government.
“This has also reduced overall spending and business activity in our economy. To alleviate this situation, I hereby direct that all accounting officers to settle all pending payments that do not have audit queries before the end of the current financial year on June 30, ” President Kenyatta said.
Governors were also directed to clear pending bills that have hit the Sh100 billion mark.
The President was responding to complaints by contractors and suppliers of national and county governments over pending bills.
mangele anataka kusema nini na sisi kama team tangatanga tunasema angesema kuanzia kesho,lakini nyinyi wakale mjue serikali ya uncle sio kama ile ya moi,raundi mtawork ndio mpate pesa,salimia impure blood sana umwambie ni uncle nyaks na lazima ajue the language of the gods liwe liwalo
:D:D slow day at the boosharee i see. hakuna kitu mangele anasema uncle bill itabidi anyang’nye konyagi kiti juu fala anaogelea lake victoria hajui hyacinth 'tamalisa yeye.
haiya basi 1777 amesalimika na lugha ambaye ataongea ni lugha ya babake. ya mama itangoja…lakini sijui kwa nini unafikiri ni lugha ya wakorino…
The multi-agency team that was manning a roadblock at Learata area along Isiolo-Moyale highway intercepted motor vehicle Registration No. 25CG 032A make Toyota Fortuner belonging to Samburu county driven by one Lejisaat Samuel Supuko aged 38yrs and is an Employee of Samburu county social services department as a driver.
Upon searching the vehicle,ksh 1099,000(one million and ninety-nine thousand) was found in a back bag.
He could not account on the source of the money or its intended use.
He was arrested and the money kept as an exhibit. DCI Samburu East is investigating the matter.
After the president’s announcement on the Ksh 1000 note yesterday, we saw some arguing that the move won’t be successful because most of the cash being hoarded is in form of dollars, and those keeping in form of Ksh will convert it to dollars within the 120 days given.
Expert analysis
The cash outside banks is 230 Billion and this is what the president wants to bring back to the formal economy or in the banking sector. As of June 2018, there were 210 million one thousand shilling notes in circulation valued at KShs 210 billion. This means the majority of the notes both in and outside banks is of Ksh. 1,000 denomination and only 20 Billion is in other currency.
Foreign Exchange Reserves in Kenya increased to 11737.70 Million USD Million in February from 11387.20 Million USD in January of 2019. Thus to convert the Ksh 230,000,000,000 outside banks to dollars would require $2,300,000,000 or almost 20% of the total forex reserves. This CBK can’t allow because the dollar would appreciate to around Ksh 125 per dollar and given the dollars required to repay debt and exports, the economy would simply collapse given that Kenya is a net importer. Therefore the government would not avail the dollars.
The dollars in the economy are very controlled so as to keep a stable exchange rate of between 95-105. And as stated above, because of the foreign debt repayment, the CBK cannot allow appreciation of the dollar, as every Ksh. 1 rise in exchange rate increases our debt by a huge margin.
So what is likely to happen is that we will see the completion of more houses and purchase of assets at exaggerated prices i.e.cars, lands etc in the next four months. We can also expect inflation up to mid next year as effects of demonetization typically take 6-12 months.
All in all, this was a very necessary move. The money being hoarded needs to be injected back to the formal economy.
Currencies in circulation
217.6 million pieces of KES 1,000
30.8 million pieces of KES 500
54.8 million pieces of KES 200
126.4 million pieces of KES 100
100.5 million pieces of KES 50
9.9 million pieces of KES 20
Source: Central Bank of Kenya
Your gang robbed a bank, you secretly buried your share of 12m in your shags backyard before being sentenced to 5 years jail term,
You’ve already served for 4 years and freedom is just a few months away for you to get out to enjoy your loot!
Every night you can’t stop planning on how you’ll walk out a ‘free millionaire’
Then out of nowhere unasikia the 1,000 notes will seize to be a legal tender in 4 months time.
Banks in Uganda will no longer accept Kenyan currency at the counter.
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A statement from Uganda’s Central Bank said the move is aimed at boosting Kenya’s fight against counterfeits and illici flows.
“The Central Bank of Kenya has informed Bank of Uganda that they have issued a new series of Kenya banknotes effective May 31, 2019……in light of new developments, BOU will not accept Kenya shillings at its counters with immediate effect,” the notice reads.
The memo from BOU’s acting Executive Director Operations Charles Malinga Akol dated June 10, 2019 also said the new currency is only available in Kenyan banks.
He further directed all commercial banks in Uganda to subject all cash flows from and into Kenya to due diligence.
This effectively puts all banks in Uganda on high alert with regards to transactions involving the Kenyan shilling.
