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Kenya Economy Watch
Ericsson
#2301 Posted : Thursday, October 10, 2019 11:24:41 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
Angelica _ann wrote:


C&P....

BORROWED:
Is the economy really struggling or are business models struggling?

Some food for thought:

1) Car sales are going down but Uber, Little Cab and the likes are on the rise.

2) Restaurants are going empty, but home delivery is rising

3) Tuition classes are not getting students but online studying is rising

4) Traders are struggling but online market sites and reference based direct selling are breaking record sales

5) Old commission based businesses are sniveling but online services, at low cost, are finding takers

6) Cell phone bills have reduced & internet penetration is on the increase

7) Stable (read "Govt Jobs") are dwindling but "Startup" jobs offering equity & Flexi work time are expanding.

8) Movie Theatre's are empty while Netflix is making rolling business.

8) Jobs seekers are reducing but job creators are on the rise. Working 40 hrs a week for 40 years is a trend of the past. Working for a few years and spending quality time contributing to society is the trend.

If truth be told what we are experiencing is a transition phase & any transition is painful for the "well set traditional businesses"...... the masters of the past.

It's most challenging for those whose business models are unwilling to change.

It's a mystery for those who have never looked beyond traditional methods or have assiduously resisted change of any kind.

The Economy is not struggling...it's the business models that are changing!


Lala
Ericsson
#2302 Posted : Wednesday, October 16, 2019 10:35:39 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
https://www.standardmedi...gift-bosses-hefty-perks

If you are a low-cadre employee at a bank, chances are that your job is on the line, as the industry increases uptake of technology in service delivery.

According to a study by PricewaterhouseCoopers (PwC), the lenders’ reliance on technology as well as use of low-cost agency outlets has seen about 700 workers laid off.

However, on the flip side, senior employees in the banking sector are getting better pay.

The study noted that despite the total number of people employed by the industry having reduced last year, the amount banks used in remunerating their employees went up.

Pay As You Earn (PAYE) taxes paid by bank employees, according to the study, went up despite a reduction in the sector’s total number of employees, which was attributed to higher pay by senior bankers. Thirty-eight banks, which account for more than 95 per cent of the market share, participated in the survey.

“The number of employees employed by the study participants reduced from 29,053 people in 2017 to 28,352,” read the report, which evaluates the tax contribution of the sector.
“Despite the reduction in employee numbers, the amount of PAYE collected by participating banks grew from Sh18.7 billion in 2017 to Sh19.2 billion in 2018. This trend is due to the increase in wages paid to high cadre employees in the sector and the continued replacement of lower cadre jobs within banks as the sector increasingly adopts technology.”

The layoffs that took place between 2017 and 2018 have continued this year, with the overall headcount in the sector expected to fall further.

The Kenya Bankers Association (KBA) noted that as much as there had been layoffs in the industry, there were other jobs that were being created and available to junior banking staff, where they had retooled their skills.

“More jobs are being created, only that these new jobs are different from what was there in the yesteryears,” said Habil Olaka, KBA chief executive.

The report by PWC, examining taxes paid by banks, noted that the industry was the single largest sector contributor of taxes. Total tax contribution by the sector stood at Sh99 billion in the year ending December 2018.

Despite the high taxes that the industry pays, PWC noted that rarely were banks considered for incentives.

“For every Sh4 of corporation tax paid in Kenya, approximately Sh1 was paid by the banking sector. This translates to 26 per cent of the corporate taxes collected by KRA,” said Titus Mukora, a tax partner at PWC Kenya.
Ericsson
#2303 Posted : Friday, October 25, 2019 7:02:36 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
Nigerian bank Access bank plc has proposed to acquire 93.57% of the issued shares of Transnational Bank plc
murchr
#2304 Posted : Friday, October 25, 2019 7:27:40 PM
Rank: Elder


Joined: 2/26/2012
Posts: 14,948
Ericsson wrote:
https://www.standardmedia.co.ke/business/article/2001345649/banks-sack-tellers-but-gift-bosses-hefty-perks

If you are a low-cadre employee at a bank, chances are that your job is on the line, as the industry increases uptake of technology in service delivery.

According to a study by PricewaterhouseCoopers (PwC), the lenders’ reliance on technology as well as use of low-cost agency outlets has seen about 700 workers laid off.

However, on the flip side, senior employees in the banking sector are getting better pay.

The study noted that despite the total number of people employed by the industry having reduced last year, the amount banks used in remunerating their employees went up.

Pay As You Earn (PAYE) taxes paid by bank employees, according to the study, went up despite a reduction in the sector’s total number of employees, which was attributed to higher pay by senior bankers. Thirty-eight banks, which account for more than 95 per cent of the market share, participated in the survey.

“The number of employees employed by the study participants reduced from 29,053 people in 2017 to 28,352,” read the report, which evaluates the tax contribution of the sector.
“Despite the reduction in employee numbers, the amount of PAYE collected by participating banks grew from Sh18.7 billion in 2017 to Sh19.2 billion in 2018. This trend is due to the increase in wages paid to high cadre employees in the sector and the continued replacement of lower cadre jobs within banks as the sector increasingly adopts technology.”

The layoffs that took place between 2017 and 2018 have continued this year, with the overall headcount in the sector expected to fall further.

The Kenya Bankers Association (KBA) noted that as much as there had been layoffs in the industry, there were other jobs that were being created and available to junior banking staff, where they had retooled their skills.

“More jobs are being created, only that these new jobs are different from what was there in the yesteryears,” said Habil Olaka, KBA chief executive.

The report by PWC, examining taxes paid by banks, noted that the industry was the single largest sector contributor of taxes. Total tax contribution by the sector stood at Sh99 billion in the year ending December 2018.

Despite the high taxes that the industry pays, PWC noted that rarely were banks considered for incentives.

“For every Sh4 of corporation tax paid in Kenya, approximately Sh1 was paid by the banking sector. This translates to 26 per cent of the corporate taxes collected by KRA,” said Titus Mukora, a tax partner at PWC Kenya.



As mentioned in 2016
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
VituVingiSana
#2305 Posted : Friday, October 25, 2019 7:51:49 PM
Rank: Chief


Joined: 1/3/2007
Posts: 16,515
Location: Nairobi
Ericsson wrote:
Nigerian bank Access bank plc has proposed to acquire 93.57% of the issued shares of Transnational Bank plc
Not 100%?
Moi wins again.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#2306 Posted : Saturday, October 26, 2019 6:55:52 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
Nigerian bank Access bank plc has proposed to acquire 93.57% of the issued shares of Transnational Bank plc
Not 100%?
Moi wins again.

Which banks will his institutions now bank with?
Kabarak investment has a stake in Standard chartered bank kenya at position 3.
Ericsson
#2307 Posted : Saturday, October 26, 2019 9:17:14 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
VituVingiSana wrote:
Ericsson wrote:
Nigerian bank Access bank plc has proposed to acquire 93.57% of the issued shares of Transnational Bank plc
Not 100%?
Moi wins again.


TRANSNATIONAL BANK SHAREHOLDERS
NO. NAME OF SHAREHOLDER NO. OF SHARES % SHAREHOLDING

1 Archer & Wilcock Nominee Ltd 47,492,155 23.75%

2 Sovereign Trust Limited 47,073,774 23.54%

3 Duggan Limited 31,069,078 15.53%

4 Pyramid Trustees Limited 30,237,545 15.12%

5 November Nominees Limited 14,552,587 7.28%

6 Simbi Investors Limited 8,217,059 4.11%

7 Losopuk Limited 5,579,844 2.79%

8 Kenyerere Limited 4,291,381 2.15%

9 Lohan Investments Limited 2,899,916 1.45%

10 Others (26 Shareholders) 8,586,661 4.29%

TOTAL 200,000,000 100.00%
Ericsson
#2308 Posted : Wednesday, October 30, 2019 11:08:29 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
Kenya raised its budget deficit forecast for the second time in less than two months
The gap for the fiscal year through June 2020 is forecast at 6.2% of GDP compared with estimates of 5.9% in September and 5.6% earlier
Gap of 640.2 billion shillings will partly be plugged with net external financing of 333.1 billion shillings and 305.7 billion shillings of domestic borrowing
Ericsson
#2309 Posted : Wednesday, October 30, 2019 4:52:26 PM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
https://businesstoday.co...e-sackings-by-mediamax/

MASSACRE. That’s how journalists are describing the ongoing retrenchment at Mediamax Ltd, where 160 employees are being offloaded.

This will rank as one the bloodiest layoff in Kenya’s recent corporate history, and the biggest in media, rivaling Standard Group’s September 2017 sacking of just over 100.

The major casualty so far, according to information reaching Business Today newsdesk, is K24, followed by Kameme TV. At K24, 10 editors are being sent home as the company moves to cut costs and streamline operations.

Virtually all K24 editors have been fired. “K24 has been swept clean,” said an editor at Mediamax. “I am not even sure about myself. The situation is tense.”

Those who have reportedly been given letters include K24 managing editor Fred Njiiri, Frankline Wambugu, the managing editor for Kiswahili and chief anchor; English Managing Editor Boniface Mutakha, and Deputy Managing Editor Ali Mtenzi.

Others shown the door include K24 business editor Tony Timase and Sports Editor Torome Tirike, who moved from Citizen TV.
Lolest!
#2310 Posted : Wednesday, October 30, 2019 7:14:33 PM
Rank: Elder


Joined: 3/18/2011
Posts: 11,764
Location: Kianjokoma
Ericsson wrote:
https://businesstoday.co.ke/k24-tv-and-kameme-sackings-by-mediamax/

MASSACRE. That’s how journalists are describing the ongoing retrenchment at Mediamax Ltd, where 160 employees are being offloaded.

This will rank as one the bloodiest layoff in Kenya’s recent corporate history, and the biggest in media, rivaling Standard Group’s September 2017 sacking of just over 100.

The major casualty so far, according to information reaching Business Today newsdesk, is K24, followed by Kameme TV. At K24, 10 editors are being sent home as the company moves to cut costs and streamline operations.

Virtually all K24 editors have been fired. “K24 has been swept clean,” said an editor at Mediamax. “I am not even sure about myself. The situation is tense.”

Those who have reportedly been given letters include K24 managing editor Fred Njiiri, Frankline Wambugu, the managing editor for Kiswahili and chief anchor; English Managing Editor Boniface Mutakha, and Deputy Managing Editor Ali Mtenzi.

Others shown the door include K24 business editor Tony Timase and Sports Editor Torome Tirike, who moved from Citizen TV.

Mediamax is/was owned by Kenyatta family
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
kayhara
#2311 Posted : Wednesday, October 30, 2019 7:39:19 PM
Rank: Veteran


Joined: 5/5/2011
Posts: 1,028
Things are elephant, acha mediamax most of my midro klass friends are walking on thin very thin string, clients are looking for reasons not to pay, one straight up told me the only way he will pay is if a court orders it, very soon i might have to let some workers go and it kills me because there is nothing i can do, the banks even those we have worked with for very long will not extend credit because they can tell our payments are far in between and dwindling every week,
For mediamax advertisers came into hard times and that obviously affected their business, trust me Keroche Humphrey and the rest who have been hit by KRA can never advertise with Mediamax, funeral and general announcements will not fill the gaps left by the big manufacturers, add to this the social media side and the free newspaper.
I am not sure the repealing of the rate cap will have a huge effect on the economy because banks will be super careful seeing that many firms are at the edge, behind on rent and salaries, tax and deductions like NSSF and NHIF so even a 5 million loan will just not be enough.
To Each His Own
lochaz-index
#2312 Posted : Wednesday, October 30, 2019 8:22:21 PM
Rank: Veteran


Joined: 9/18/2014
Posts: 988
kayhara wrote:
Things are elephant, acha mediamax most of my midro klass friends are walking on thin very thin string, clients are looking for reasons not to pay, one straight up told me the only way he will pay is if a court orders it, very soon i might have to let some workers go and it kills me because there is nothing i can do, the banks even those we have worked with for very long will not extend credit because they can tell our payments are far in between and dwindling every week,
For mediamax advertisers came into hard times and that obviously affected their business, trust me Keroche Humphrey and the rest who have been hit by KRA can never advertise with Mediamax, funeral and general announcements will not fill the gaps left by the big manufacturers, add to this the social media side and the free newspaper.
I am not sure the repealing of the rate cap will have a huge effect on the economy because banks will be super careful seeing that many firms are at the edge, behind on rent and salaries, tax and deductions like NSSF and NHIF so even a 5 million loan will just not be enough.

Spot on. The middle class is always the last to get the memo on economic ruin. As for repealing the rate cap, it can't catalyze a turn around as is being touted on these pages. That is simply wishful thinking. This bear and economic slowdown preceded the caps by one and a half years plus KE is now much further down that perilous rabbit hole than it was in 2016. For sustainable long term development, besides sorting out the obvious fiscal mess, nothing short of a structural overhaul will suffice. Sentiment aside, the road to economic recovery will be long.
The main purpose of the stock market is to make fools of as many people as possible.
obiero
#2313 Posted : Wednesday, October 30, 2019 9:21:21 PM
Rank: Elder


Joined: 6/23/2009
Posts: 12,377
Location: nairobi
lochaz-index wrote:
kayhara wrote:
Things are elephant, acha mediamax most of my midro klass friends are walking on thin very thin string, clients are looking for reasons not to pay, one straight up told me the only way he will pay is if a court orders it, very soon i might have to let some workers go and it kills me because there is nothing i can do, the banks even those we have worked with for very long will not extend credit because they can tell our payments are far in between and dwindling every week,
For mediamax advertisers came into hard times and that obviously affected their business, trust me Keroche Humphrey and the rest who have been hit by KRA can never advertise with Mediamax, funeral and general announcements will not fill the gaps left by the big manufacturers, add to this the social media side and the free newspaper.
I am not sure the repealing of the rate cap will have a huge effect on the economy because banks will be super careful seeing that many firms are at the edge, behind on rent and salaries, tax and deductions like NSSF and NHIF so even a 5 million loan will just not be enough.

Spot on. The middle class is always the last to get the memo on economic ruin. As for repealing the rate cap, it can't catalyze a turn around as is being touted on these pages. That is simply wishful thinking. This bear and economic slowdown preceded the caps by one and a half years plus KE is now much further down that perilous rabbit hole than it was in 2016. For sustainable long term development, besides sorting out the obvious fiscal mess, nothing short of a structural overhaul will suffice. Sentiment aside, the road to economic recovery will be long.

Road will be long but much better with removal of the rate caps. This repeal is manna from heaven
COOP 5,500 ABP12.6; HF 2,000 ABP 5.90; KCB 7,500 ABP 36; KNRE 100,000 ABP 2.90; KQ 221,100 ABP 12.68
Thitifini
#2314 Posted : Wednesday, October 30, 2019 10:18:19 PM
Rank: Member


Joined: 1/15/2015
Posts: 570
Location: Kenya
lochaz-index wrote:
kayhara wrote:
Things are elephant.

The middle class is always the last to get the memo on economic ruin.

From my observation point, these two points say all. @Mugundaman pole, but this is so true.

60% Learning, 30% synthesizing, 10% Debating
heri
#2315 Posted : Thursday, October 31, 2019 9:36:42 AM
Rank: Member


Joined: 9/14/2011
Posts: 692
Location: nairobi
https://www.nation.co.ke...0904-8605uiz/index.html

In its Kenya Economic Update for October 2019, to be released today, the Bank notes that, “with 43 per cent of domestic debt expected to mature within one year, the government could face challenges in rolling over such bonds in an environment of no interest rate caps, low subscription rates and over-exposure of commercial banks to these assets”.

Are we staring at serious GOK defaults? or what miracle will happen for GOK to pay these loans with the dwindling tax revenues?
tom_boy
#2316 Posted : Thursday, October 31, 2019 3:54:28 PM
Rank: Member


Joined: 2/20/2007
Posts: 724
heri wrote:
https://www.nation.co.ke/news/Economy-in-crisis-World-Bank-warns-of-debt-distress/1056-5330904-8605uiz/index.html

In its Kenya Economic Update for October 2019, to be released today, the Bank notes that, “with 43 per cent of domestic debt expected to mature within one year, the government could face challenges in rolling over such bonds in an environment of no interest rate caps, low subscription rates and over-exposure of commercial banks to these assets”.

Are we staring at serious GOK defaults? or what miracle will happen for GOK to pay these loans with the dwindling tax revenues?


Either print money or tbills and bonds go to 15-20% with corresponding increase in loans rates charged to mwananchi
They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
Ericsson
#2317 Posted : Friday, November 01, 2019 6:00:32 AM
Rank: Elder


Joined: 12/4/2009
Posts: 7,622
Location: NAIROBI
tom_boy wrote:
heri wrote:
https://www.nation.co.ke/news/Economy-in-crisis-World-Bank-warns-of-debt-distress/1056-5330904-8605uiz/index.html

In its Kenya Economic Update for October 2019, to be released today, the Bank notes that, “with 43 per cent of domestic debt expected to mature within one year, the government could face challenges in rolling over such bonds in an environment of no interest rate caps, low subscription rates and over-exposure of commercial banks to these assets”.

Are we staring at serious GOK defaults? or what miracle will happen for GOK to pay these loans with the dwindling tax revenues?


Either print money or tbills and bonds go to 15-20% with corresponding increase in loans rates charged to mwananchi


Rates will fall further in the short term.
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