Kutwa Tuesday - June 18

yes it's Wednesday, but these relate to recent events

2008 Budget
- While the ICT sector was celebrating, a 25% tax on imported used computers was added on
- Wireless providers also pay a 10% tax, same as mobile companies (putting Telkom wireless on par with Safaricom and Celtel)
- Whistle blower on tax evasion may be entitled to 3% or 5% tax recovered by KRA. (but too late for David Munyakei)
- And from Tanzania; a brilliant idea that sounded dumb initially – at tax on loss making companies; It's an alternative minimum tax for companies that report tax losses for three consecutive years - and will now amount to of 0.3% of their turnover. This is targeted at companies with high turnover that engage in tax avoidance could KRA adopt that later?

CFC Stanbic: In the CFC-Stanbic merger/takeover, shareholders voiced concerns that some CFC shareholders were getting paid and walking away from the company with cash. Now three of them - Gambit, Trogon, and Jani are voluntarily winding up

IPO refunds: The Central Bank is concerned about the slow pace of Safaricom refunds (statement (PDF))
- Yet there was there option in the initial prospectus for applicants to be refunded by M-pesa; which would have been ideal for thousands of minimum applicants [who are getting refunds of about 7,900 shillings or $127]
- The CBK statement mentions that you can send a message to confirm the status of your refund e.g. "CDS#ID#R" to 4009. (my message told me my cheque which I collected last week, was ready at the broker). What it doesn’t tell you is that the message costs 15 shillings or ~ 2 Safaricom shares at the going rate