Safaricom bleeds Sh70B on harsh taxes
SEE ALSO :NSE share index down by 9.56 pointsAway from Safaricom, other counters on the stock market and the foreign exchange largely remained stable. The Kenyan shilling was unchanged against the US dollar on Thursday, trading at 100.8 while little activity was reported in the stock market. The Nairobi Securities Exchange’s benchmark index fell 2.63 per cent points to close at 2,858.46, with analysts projecting that the fiscal policies would have a far-reaching effect on the investment environment. According to economists, the full impact of the new tax measures has yet to be felt as consumers weigh their spending options. The price of almost all major consumer products, transport and basic commodities are expected to go up following the eight per cent value added tax on petroleum products.
SEE ALSO :Safaricom unveils 400G networkThe new tax proposals are also expected to have a significant impact on the business environment, with analysts projecting depressed demand following increased levies on fuel and money transfer services. Reuters news agency reported that the Kenyan shilling was expected to strengthen amid thin import demand.
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