Citibank Kenya Feuds with Client, More Industries Protest Finance Bill 2024
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Citibank Kenya Refutes Breach of Contract Claims by Client
Corporate lender Citibank Kenya has refuted claims made by a client in letters to the bank and to the Central Bank of Kenya that it breached its fiduciary duties.
In the letter addressed to CBK and seen by The Kenyan Wall Street, Njoroge says that the two entities entered into a contract in 2018, when Adrian Kenya opened operational accounts at Citi and obtained credit facilities totalling USD 14.7mn. He argues that despite the credit facility not being in arrears, the lender has among other things withheld funds and caused economic losses.
“We acknowledge receipt of Adrian Kenya Ltd’s letter that highlights various concerns they claim to have regarding their banking relationship with Citi Kenya,” A Citibank spokesperson wrote in a response to an email from The Kenyan Wall Street, “Upon careful review, we can confirm that the allegations therein are inaccurate and/or based on the wrong interpretation of facts.”
Adrian Kenya, which was founded in 2013, describes itself as “a leading provider of technology and EPC solutions in Africa with clients in telecoms, ICT, Energy, Olla and Gas Sectors,” according to its LinkedIn profile. The company says that the strained relationship with Citi led to the cancellation of contracts worth KSh 231.2 million, and presents potential losses of Kshs. 229 million.
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Finance Bill 2024: Manufacturers, Industry Players, Protest Proposed Taxes Likely to Raise Cost of Living
As the May 28th deadline for public participation for the Finance Bill 2024 nears, more industry players have opposed proposed tax hikes, with the latest being cooking oil and battery manufacturers.
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“If implemented, this excise duty will trigger an unprecedented surge in the price of cooking oil, a staple in Kenyan households,” edible oil manufacturers’ said in a statement on May 19th, “The cost of this essential comedy is projected to skyrocket by 80%, rendering it unaffordable for millions of Kenya.”
Among its arguments is that price increases for cooking oil will also have cascading effects on other every day products. “The excise duty will cause a cascading effect on these items, inflating the price of a standard loaf of bread (400g) from Kshs 70 to Kshs 80. The price of a long bar soap could escalate from Kshs 180 to Kshs 270, and margarine (250g) from Kshs 160 to a staggering Kshs 300,” the association said.
Meanwhile, ABM is lobbying against the proposed ECO tax on batteries and dry cells, which would be charged at KShs. 750 per kilo. “A small lead acid battery for a motor vehicle is 12kg, with a retail price of Ksh 8, 500.The Eco tax for this small battery will translate to an additional Ksh 9, 000 plus VAT. Therefore, a small car battery will retail at Ksh 17, 500,” ABM said in a statement signed by its CEO, Guy Jack.
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6 个月Citi needs to clean house in Kenya. Mugambi and Onesmus are a disgrace, ignoring clients and engaging in unethical behavior. Central Bank of Kenya, please investigate! #CooporateAccountabilty #FixCitibank!