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Presumptive Tax

The back-up plan in standby letters of credit
Each year Kenya receives financing assistance from donors, focused more on capacity building than commercial projects. These projects are mostly left to private investors who might lack financial capacity or sustainability over the long-haul which is why project financing is a solution in the development of the investor’s concepts into viable projects.

Project financing solutions are designed to cater for both small and large property developers who wish to construct multiple units either for rent or for sale. One of the major issues in each contract during property development is the payment and how to implement obligations of the parties. Reasonable concerns of the parties in the international trade are more than domestic trade.

The back-up plan in standby letters of credit This is a payment undertaking intended to be used only as a fall-back in case of default.

Why every small business must look to save money

Every year on October 31, the World Savings Day is marked with an aim to increase awareness of the importance of savings both for modern economies and for individuals. The message is a timely one for East Africa, with Kenya’s gross domestic savings as a percentage of GDP falling last year as result of the higher cost of living.

Every small business and every small business owner should be looking to save, especially given an uncertain global economic outlook and the challenges of accessing financing. Let us look at some common excuses small business owners offer for failing to put some money aside for a rainy day or to fund future growth – and why these excuses are misguided.

Why every small business must look to save money Money – making it, saving it, sourcing it – is arguably the biggest challenge of running a small business.

Tax in retirement benefit schemes

Retirement benefits schemes are very efficient tax savings vehicles that allow tax free accumulation of members’ benefits. Simply put, contributions made to a registered retirement arrangement are exempt from pay-as-you-earn (PAYE) tax. The investment income earned by the fund is also tax exempt.

These tax incentives are meant to encourage members to save more for their retirement as well as discourage early access of benefits before reaching retirement age.

Tax in retirement benefit schemes Retirement benefits schemes are very efficient tax savings vehicles that allow tax free accumulation of members’ benefits.

Actuaries thrive under new accounting standards

Actuarial scientists say last January’s activation of the International Financial Reporting Standards (IFRS9) has created new actuarial jobs.

The Actuarial Society of Kenya (Task) said members’ contribution to financial sector development was now held highly since an expert’s opinion on individual financial histories was crucial to determining risk profiles, before determining the amount of money one can be loaned.

“IFRS9 triggered a higher provisioning for loans and this means banks need professionals who can calculate loanees’ risk profile on an anticipated default basis rather than the realised loan losses,” said Task national treasurer Ezekiel Macharia.

Actuaries thrive under new accounting standards Actuarial scientists say last January’s activation of the International Financial Reporting Standards (IFRS9) has created new actuarial jobs.

List: Firms that have issued profit warning this year

Bamburi Cement

In issuing its profit warning, Bamburi Cement

cited difficult market conditions as well as escalating international energy prices in both Kenya and Uganda.

The cement manufacturer also blamed power costs in Kenya and additional provisions, mainly receivables, in Uganda

Deacons

Deacons

blamed low economic start in 2018 for its reduced profitability.

Operational costs for Mr Price stores in the first four months of 2018 and loss of revenue from the discontinued franchise affected its performance.

Non-performance of major anchor tenants, namely Nakumatt and Uchumi supermarkets helped to reduce traffic into malls where its shops are located.

List: Firms that have issued profit warning this year Kenya Power and Bamburi Cement are in a list of firms that have warned of a significant decline in their profitability this year.

Getting tax compliance certificate now critical

Are you a Kenyan looking for employment or changing business openings? Are your job application documents in order? Well, you might need to include a tax compliance certificate among them.
This document has turned out to be a very important part of your application either for those seeking new openings or those seeking to change employers.

Getting tax compliance certificate now critical Are you a Kenyan looking for employment or changing business openings? Are your job application documents in order?

How accountants can rise from good to great

Businesses today want more from their accountants. Business strategy, growth planning and future vertical industry trends are all areas that accountants are being expected to input on with knowledge and confidence. That says a lot about how the accounting profession has evolved, from number-crunchers and tax-filers to drivers of business success.

It’s likely that many accountants are managing this evolution with a mix of anticipation and trepidation.

For years, accountancy teams have crunched numbers. But now, they are being asked to use these figures to help support new strategies and changes of business direction. Better still, before these strategies are developed they are in a position to give input on business direction based on what the numbers and insights are telling them.

How accountants can rise from good to great Newly skilled auditors backed by technology are well set to transition into a world beyond book balancing.