EAST
w w w. b u s i w e e k . c o m
AFRICAN
VOL. 9 ISSUE 3, AUGUST 26 - SEPTEMBER 1, 2013
Unveiling Opportunities
KSH40; TZSH1000; USH1,500; RWF600; BIF 1,500; 5 BIRR, SS£ 2.5
New currency for Kenya BY HUMPHREY LILOBA NAIROBI, KENYA---The East African Community’s (EAC) roadmap towards a common currency has been given a knock with the announcement of new currency notes and coins in Kenya last week. According to the regional integration roadmap, the EAC countries are to adopt a common currency by the year 2015. It is doubtful that the Kenyan govern-
ment would order new currency in a span of two years given the printing and minting costs involved in the whole exercise. The annoucement made by Kenya’s Head of Civil Service and not as traditionally done by the Central Bank of Kenya (CBK) also raised questions on whether due tendering procedures had been followed. CBK and the Kenyan Treasury have in the past been embroiled in in an intericated web of scandals following past printing and currency minting contracts
to British firm De la Rue. “The coountry now comes to a great risk of incurring huge costs if for instance the Monetary Union planned by the EAC comes to fruition. But this is highly doubtful,” Jackson Mutulu, an economic expert in Nairobi said. In keeping with the new Kenyan constitution, the new currency will not bear any portraits of individuals, current or former presidents, but will bear images that are unique to Kenya as a country. ‘All notes and coins shall bear only
images that depict Kenya. These images exclude portraits of any individua,’ reads article 231(4) of the Constitution. In the past, various Kenyan currency notes and coins would carry the image of the three presidents namely Jomo Kenyatta, Daniel arap Moi and Emilio Mwai Kibaki. According to Kimemia, the decision to rollout the new currency was reached after a Cabinet meeting.The consititution requires a participatory process in determining the design of the new currency.
EAC woos Norwegian business BY DAVID MUWANGA
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ARUSHA, TANZANIA-East African Community’s Secretary General, Ambassador Dr. Richard Sezibera, has been wooing Norwegian investors, business leaders and the private sector in general, to come and invest in EAC’s industrial base. He said the trading bloc made up of 130 million people offers a widerange of opportunities. “We are however being challenged by a relatively low level of financial deepening, lower levels of domestic savings, high reliance on donor aid, limited physical infrastructure and human capital,” he said. He made the appeal last week in a key note address at the Annual Conference of the
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UIA wants e-licensing
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Mike Sebalu (Uganda) supporting a motion last week to pay official tribute to the efforts of Rotary International TURN TO PAGE 2uu Group in the region.
Uganda tour operators win VAT postponement BY EMMA ONYANGO KAMPALA, UGANDA –Uganda’s tourism industry is drawing out a collective sigh of relief following the government’s postponement to slap 18% VAT on upcountry hotel accommodation and related services. The tax will now be imposed next financial year. This follows desperate calls since the June
budget speech, for the government to revisit the decision. Several representatives of the industry argued that the timing would have an adverse effect on Uganda’s tourism revenues because of the abrupt cancellations that would follow. Corne Schalkwyk, the Head of Marketing and Sales at Marasa Africa disclosed that Hong Kong
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Tanzania dumps VIP status at entry BY KENAN KALAGHO DAR ES SALAAM, TANZANIA-Tanzanian ministers and ambassadors will no longer be enjoying immunity at check-points at international airports in the country. This is part of a campaign to block all loopholes through which drugs can be smuggled into in the country.
Tanzania Transport Minister Dr Harrison Mwakyembe said last week there was speculation that public figures are involved in the business. He said the government has decided not to take chances and introduced this new directive. Recently the government of Tanzania has recently warned
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Rwanda adopts mobile tax payments BY DIAS NYESIGA KIGALI, RWANDA-Small and Medium Enterprises (SMEs) whose turnover is between Rwf 2 million (about $3,000) and Rwf500 million (nearly $760,000), will find it
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