Equity Bank Uganda Managing Director Anthony M. Kituuka.
KAMPALA -Equity Bank Uganda on Monday held a media engagement to discuss the financial performance of 2022, the Africa Recovery and Resilience Plan and its achievements so far, as well as the social impact of its business.
While commenting on the bank’s financial performance, its Managing Director Anthony M. Kituuka said customer deposits rose by 21 per cent to Shs2.8 trillion in 2022 from Shs2.3 trillion recorded in 2021, as customer numbers increased by 32 per cent to 1,613 from 1,222.
The bank’s total assets were up by 20 per cent to Shs3.4 trillion in the year under review from Shs 2.8 trillion in 2021.
“We are pleased to report another year of continued growth in key areas, said Kituuka, adding that the overall performance of Equity Bank Uganda demonstrates resilience in the face of economic contraction and other associated challenges experienced post #Covid-19.
According to Kituuka, the continued focus on operational efficiency and strategic growth initiatives have enabled them to deliver positive results for the bank’s shareholders and stakeholders.
“I am fully confident that the foundations we set in 2022, will help us to deliver on our strategic priorities and further strengthen our financial performance,” he added.
The financial highlights of the bank for the year ending December 2022, include loans which went up by 6 per cent to Shs1.6 trillion compared to Shs1.5 trillion traded in 2021.
The bank’s cash and balances with the Bank of Uganda, which regulates the banking industry in the country, increased to Shs558.4 billion in 2022 compared to Shs353.3 billion retained in 2021, as bad and doubtful debts rose to Shs90.7 billion in 2022 from Shs25.7 billion in 2021.
However, as the bank’s agents increased by 39 per cent to 7,7000 in 2022, from 5,572 in 2021, its profit before tax dropped by 52 per cent to Shs56.4 billion from Shs118.2 billion.
“With our significant investments in technology, prudent cost and risk controls as well as robust systems, we are on the right track to even perform better in 2023.
He said Equity Bank Uganda is committed to maintaining a strong financial position and will continue to pursue growth opportunities while remaining focused on delivering value to its customers and shareholders, not that the lender is ranked as the fifth systemically important bank in the country.
He said the bank has continued to invest in key areas of the business such as product development and expansion into new markets. The investments, he said, have helped to drive growth and position the bank for continued success in the future.
However, he said in 2022, adopted the twin-engine model to fund social and economic projects in Uganda including agriculture where small-scale farmers got credit of Shs70.3 billion, manufacturing, trade, energy and environment, education, health, oil & gas.
Kituuka was happy that Equity Bank Uganda stepped its social impact investments aimed at transforming lives and livelihoods of especially the youth and women, with credit support worth Shs21 billion. “The bank placed an intentional focus on rural women, offering unsecured credit with the aim to provide women at the bottom of the economic ladder with access to affordable capital,” he said.
He said that among others, the bank in 2022 continued with equipping women with business skills, mentoring and exposing them to business networks, and equipping them with the tools they need to succeed in business.
Further, the bank in 2022 availed loans worth Shs129.9 million to 42 village saving and loan associations [VSLAs] in refugee settlement, a bold move aimed at giving refugees financial independence.
Under the African Recovery and Resillience Plan launched post-#Covid-19, Equity Group continues to make available $6 billion to 5 million SMEs and 25 million individual borrowers for the next five years.
According to bank officials, the plans conceives that the 5 million businesses largely comprising MSMEs will create 50 million jobs, 25 million jobs directly while a similar number will be created indirectly.
Kampala-The Uganda Defence Forces spokesperson, Brig Gen Felix Kulayigye has reported that security forces have recovered explosives in Nabweru, Nansana Division, Nansana Municipality, Wakiso District.
“Explosives found in Nabweru on the road to Kazo,” Kulaigye said.
He added, “These were to be used today in the city by those planning to paint it red. The media should go and see for themselves,”
Major Charles Kabona, the army’s first Division spokesperson who was part of the operation told journalists at Nabweru this morning that the arrest followed a special intelligence carried out last night when forces camped in the area and first held four people found with the explosive-making materials before two others were captured this morning.
“After getting our technical and human intelligence information last night, our forces came to this place (Nabweru) and managed to arrest four people. These people are having gadgets that make Improvised Explosive Devices (IEDs). The IEDs are mostly used by negative elements in countries like Somalia, DRC and recently in Uganda when they hid us,” Maj Kabona told journalists on Monday.
He added that the armed forces have now surrounded the area and will continue to search for more suspects and establish who they are working with.
“We will find out their collaborators. We call upon the general public to be extra vigilant and alert. Surprisingly, none of their neighbours knew that these people were criminals. We have a threat amidst us and therefore, we must work very closely to ensure that we curb such criminality. We shall not allow anybody to destabilise our country,” Major Kabona added.
The development comes days after police warned political activists against organising an “unlawful assembly” on May 8.
The law enforcement body said while organisers had called upon the public to peacefully demonstrate over Uganda’s harsh economic environment, “the intentions are for violent protests.”
However, at least six people were arrested for being in possession of Improvised Explosive Devices (IEDs).
The suspects identified as Hamidu Ssekidde, Muhammad Kalyango, Abdul Katamba, Arafat Ssali, Emmanuel Asiimwe and Hamidu Muyondi were arrested as part of the ongoing joint operation by the UPDF and police in Nabweru North, Nansana Division, Nansana Municipality, Wakiso District.
According to Kampala Metropolitan Police deputy spokesperson, ASP Luke Owoyesigyire, one of the suspects Muyondi was shot in the leg during the arrest as he attempted to run away in a car on Monday morning.
“Muyondi is one of the suspects that has moved away with a wound. This was an accident that occurred in the vehicle as they were preparing to drive away. But we are hopeful the injury is minor and we are waiting for the outcome from the medical side where he has been taken. They are going to be taken to one of our police stations for interrogations,” said Mr Owoyesigyire.
He added that some of the exhibits recovered included 12 wine bottles, wielding binder nails, charcoal dust, and sugar, a jerrycan of petrol, matchboxes, a blasting cup, dynamite and candlewick, among others.
Atleast 350 people in Kisoro District have received relief non-food Items (NFIs) following the recent floods which ravaged the district last week. On 2nd and 3rd May 2023, Kisoro district which neighbors Rwanda to the south, experienced above-normal rains that caused heavy flooding and landslides, leading to the death of eight people, and six injuries. The affected communities include villages of Bunyora and Kimbuba in Chibumba Parish, Chahafi town council.
Uganda Red Cross together with the community responders went to the rescue of the people, offered first aid to the injured and referred them to hospital for further management. The dead were retrieved from the rubble and accorded a decent burial. Under the coordination of the Office of the Prime Minister, Uganda Red Cross worked closely with the Kisoro District Disaster Management Committee to complete a rapid assessment in less than 24 hours to establish the magnitude of the disaster and arranged delivery of relief aid to the affected communities.
While presiding over the distribution exercise, the Kisoro district Woman Member of Parliament who also doubles as the Minister of State for Youth and Children Affairs Sarah Mateke appreciated the Uganda Red Cross for the quick response. I thank the Red Cross for the quick response to the affected families. The nonfood items given will help our people to develop coping mechanisms temporarily as the Government also prepares to support them with any other support required.” Mateke added.
Mateke also represented the Minister of State for Relief and Disaster Preparedness, Office of the Prime Minister, Esther Davinah Anyakun. Dr, Brian Kanaahe, Uganda Red Cross Director of Disaster Risk Management highlighted the standard operating procedures for the Red Cross that guide such emergencies. He appreciated the coordination and collaboration with the district authorities and extended sympathies to the affected families.
“last week was so busy for our team, carrying out rapid assessments, and verification of beneficiaries, to inform this response. We have tried to respond within the turnaround time of between 12 -72 hours as per our emergency standard operating procedures. As the Red Cross, we find pride in alleviating the suffering of people, and saving lives.” “In collaboration with the Government, District leadership, I am happy that we are able to put a smile on the faces of over 300 people receiving these nonfood items today.” Kanaahe added.
Among the relief aid delivered include shelter kits, Tarpaulins, Blankets, Saucepans, Knives, plates, cups, Jerrycans, Mats, bars of soap, solar lamps, Aqua tabs (for water treatment), bed nets, and shelter kits containing digging kits to enable people set up new shelters.
The never-ending legal battle between Businessman Hamis Kiggundu alais Ham and Diamond Trust Bank (DTB) has ignited a significant debate surrounding the independence of Uganda’s judiciary and the potential influence of politics in legal proceedings. The case, which centres on DTB’s admission of illegalities committed and documented on court records, has become a litmus test for the country’s legal structures and the judiciary’s ability to uphold the law.
At the heart of the controversy, concern has been raised about the political influence wielded by Attorney General Kiryowa Kiwanuka and his legal partner Mr Edward Karugire of Kiwanuka and Karugire Company Advocates with concerned individuals and legal scholars are questioning whether their positions and connections could potentially protect Diamond Trust Bank from the illegal actions it has admitted to committing.
“Based on the fact that non-tolerance of illegalities in all courts of law is the baseline of all legal structures and judicial proceedings internationally, this case is a weighing scale on the independence of the Ugandan Judiciary.”
Another critical point of scrutiny is Kiryowa Kiwanuka’s dual role as both the Attorney General and a partner in K&K Advocates, the defence firm of the embattled bank. This raises doubts about the impartiality and independence of the judiciary. The potential conflict of interest in such a scenario has further fueled concerns that the outcome of the case could be compromised.
Can Kiryowa Kiwanuka’s political influence as current Attorney General and Mr Karugire’s Marital status Save Diamond Trust Bank from the illegalities committed and admitted on Court records or this case is a beam of hope to all Ugandans as a solution to this cancer of exploitative foreign banks that unlawfully debit monies from Ugandans’ accounts?
In any given society once politicians and public servants start financially competing with the private business community, it compromises social-economic development and upward transformation of the society at large as they start using their positions to undermine all structures, systems and policies put in place to carry the nation forward.
Diamond Trust Bank (DTB) unlawfully debited UGX. 120 Billion from Ham Enterprises (U) Limited accounts and admitted to committing illegalities at the high court on court records when Mr Kiryowa Kiwanuka told the court that DTB had no license to operate in Uganda and judgment was made in favour of Ham Enterprises at the high court for recovery of the debited monies from the bank.
The bank and its lawyers of K&K Advocates before the Supreme Court in 2021 and admitted failure of the Court of Appeal to address the substantial point of illegality in their submission of 5th November 2021.
On 11 November 2021, Ham filed an application stating that DTB had concurred with him that the Court of Appeal (COA) justices; Richard Buteera, Christopher Madrama, and Keneth Kakuma, did not address the issues of illegality contrary to the provisions of the financial institutions act on which grounds judgment was rightfully entered at the high court.
DTB and its lawyers, K & K advocates, have also admitted to the failure of the Court of Appeal to address the substantial point of illegality in their submissions. Ham Enterprises filed an application highlighting that the Court of Appeal justices did not address the issues of illegality as per the provisions of the Financial Institutions Act. As a result, the case now awaits a judgment on admission, while DTB remains entangled in the admissions it made on court records at both the high court and the Supreme Court.
Can the Ugandan Supreme Court shield an illegality contrary to international standards for judicial proceedings?
Will Kiryowa Kiwanuka’s political influence and Mr Karugire’s marital status impact the resolution of the case?
Does Kiryowa Kiwanuka’s dual role as Attorney General and partner in K & K advocate a conflict of interest that compromises the independence of the judiciary?
Can Diamond Trust Bank evade legal consequences due to weak legal structures and policies in the country?
And finally, will this case serve as a turning point for Ugandans dealing with exploitative and poorly regulated foreign banks?
A panel of esteemed judges, including the Chief Justice of Uganda, has been selected to decide the case based on the court records and Ham Enterprises’ application for judgment on admission. The outcome of this high-profile case will not only determine the fate of Ham Enterprises and DTB but also set a precedent for the Ugandan judicial system. It will test the strength of the judiciary to administer justice and uphold the law in the face of potential political pressure.
The resolution of this case holds the potential to shape the future of banking regulations, legal procedures, and the protection of constitutional rights for all Ugandans.
The genesis of the saga began in March 2020, when businessman Hamis Kiggundu through his lawyers Fred Muwema of Muwema and Co Advocates filed a suit against DTB for unlawful debit of monies in excess of UGX 120 Billion from his accounts.
The bank unlawfully and deceitfully withdrew these amounts over a spread period of 10 years in excess of all the companies liabilities to the bank on top of which Kirwowa Kiwanuka admitted on court records in September 2020, that DTB Kenya did not have a license permitting it to conduct banking business in Uganda and neither did DTB Uganda have the authority to conduct agency business on behalf of DTB Kenya thereby contravening sections; 4 (1) and 117 of the Financial Institutions Act and the banking regulations.
On October 7, 2020, a judgment was entered in favour of Ham Enterprises (U) Limited at the high court by Hon Justice Henry Peter Adonyo.
Karugire and Kilyowa Kiwanuka using their political influence resultantly demoted and transferred the said judge immediately from the head of the High Court, Commercial Division to Soroti.
Now that the public has witnessed K&K advocates controlling judges and influencing judgements in their favour in so many cases, victimizing and subjecting Ugandans to unfair and unjust political waves that always frustrate justice using political positions undermining the legal procedures with total absolute impunity, can they Successfully, Politically bulldoze the Supreme Court, or the law shall prevail?
Diamond Trust Bank admitted on court records by their submissions that they committed illegalities where they emphasized that; “The Court of Appeal justices erred at law when they failed to address the Substantial point of illegality upon which judgment was rightfully entered at the high court specifically stating that: “The learned Justices were entitled to first deal with the grounds regarding the procedure adopted by the trial Judge in striking out the defendants’ pleadings and granting the impugned orders before dealing with the other grounds.”
It was within these admissions in the bank’s submissions that they clearly stated that the appellant Judges never addressed the circumstances under which the Bank never sought the permission of the Bank of Uganda to carry out its business in Uganda as required hence violating sections; 4 (1) and 117 of the Financial Institutions Act.
Ham’s grounds of appeal at the Supreme Court is that the justices at the Court of Appeal failed to address the substantial issue of illegality as rightfully ruled at High Court since DTB admits the same, Ham made an application for judgment on admission on the 23rd November 2021.
Till today, Ham Enterprises (u) Limited awaits judgment on court admission while DTB is stuck with the illegality as admitted both on court records from the high court and the admissions on court record in their submissions at the Supreme Court.
Mitragyna Speciosa, commonly known as the Kratom plant, is a popular herb derived from Southeast Asia. However, it has gained massive popularity in the United States due to its many advantages.
Based on the colors of the veins of Kratom leaves, there are several high-quality Kratom strains like Red vein Kratom strains, green vein Kratom, Bali Kratom, Maeng Da Kratom, and more.
Many of the best Kratom vendors online are available, selling the highest quality Kratom products like Kratom extracts, liquid Kratom capsules, Kratom shots, powders, etc.
At present, no federal prohibitions exist on the use of Kratom. This demonstrates that you may buy Kratom legally in the United States.
As Kratom is not regulated at the federal level, each state in the US can make independent decisions on whether they will make Kratom legal.
Many travelers desire to fly with Kratom, but they are not sure about the criteria they need to fulfill while flying with kratom blog post. This article is the answer to all such questions.
Is It Safe To Take Kratom On A Plane?
Many Kratom users are worried regarding the query: “Can you fly with Kratom?” Because no federal laws are there that ban the use of Kratom.
Therefore, it is legitimate to travel to the destinations in the United States where Kratom use is considered legal. However, if you go to a place where the purchase and use of Kratom is prohibited, your baggage will be searched, and you will face legal consequences.
Always carry out extensive research at home and speak with an advocate or legal practitioner about the legal status of using Kratom at a place.
They are the only individuals who can adequately provide information regarding a state’s laws. You can also check the Flying with Kratom blog post online on Google.
Kratom is generally a newcomer in the United States. Airport officials and TSA authorities are not familiar with it. As a result, if they fail to recognize it, they may detain you. However, they will not be able to cause significant problems unless they find that it is a particular illicit drug.
As we mentioned earlier, if you are traveling in flight with Kratom, keep it in its original packaging so that all details about the Kratom plants and strains are accessible to them. Furthermore, this will prove what the product is.
The American Kratom Association has started working, so all states have adopted the Kratom Customer Protection Act. This legislation will help address industry issues like lab testing and age limits.
In addition to the Kratom Consumer Protection Act, the AKA has set up GMP standards that Kratom companies need to follow. A Kratom brand must follow the standards to register with the American Kratom Association.
Now that you can bring Kratom on a flight, a question may be lingering about whether you should take it in your checked baggage or hand luggage. This article will let you know how to travel with your Kratom.
Criteria To Fulfil While Flying With Kratom To Different American States
Flying with Kratom may be challenging for some people who are new to the Kratom world. Most of them are unaware of the rules and regulations in different states, so they are unsure whether they can carry Kratom while flying.
Here are the 5 criteria to fulfill while flying with Kratom to different American states.
The Legality Of Kratom In Your Destination
When a person is traveling, it is necessary to learn the legality of Kratom products. Although carrying Kratom powders or other products on a flight is legal, he must be sure to pack the products in checked baggage.
He should also be ensured about legality, as the laws and regulations about Kratom and travel vary by country. He should ask his travel agency before leaving to avoid legal hassles.
It is necessary to be transparent about the luggage’s availability, as the airport security official may think Kratom is not legal and delay the flight.
Always try to carry your products in their actual packaging. By doing so, customs agents will find it easy to authenticate the details. A traveler with Kratom should reach the airport ahead of time to avoid any boarding delays.
While the herb is legal to bring onto a flight in the United States, it is not legal to carry it into places that do not allow it. Before a person boards a flight, he should pack the products in their original packaging so that the security officials can quickly determine the substance.
He will be prosecuted for taking Kratom in a banned state if caught. However, a traveler can purchase Kratom without regulations or laws regarding the herb after reaching the destination.
Kratom Must Be Placed In Your Checked Bag.
When traveling on flight and Kratom, the traveler needs to pass through airport security without fail. Carry all of the Kratom products in the checked luggage.
This will help eliminate suspicions that he is bringing contraband aboard the aircraft.
Travelers must think about the legality of Kratom products in their checked bags. Some countries and cities do not allow this substance.
The traveler needs to find alternatives if he requires to consume it in these countries. Anyone who desires to utilize Kratom on a flight should know where to purchase it and where he can purchase it legally.
Here are a few guidelines. A doctor’s prescription may be necessary to use it.
While the TSA may not conduct bag screening for Kratom, airport officials may question him. While they will not arrest the traveler, they will convey the matter to law enforcement.
The traveler must also show proof of what he is carrying. If he fails to get a reply from the airport, he should leave the product in his checked bag.
The traveler should never forget to check with the TSA if he travels with Kratom. If the product is in its actual packaging, it’s safe to fit it into the checked bag.
If someone is traveling overseas, he should check that his destination allows Kratom as well.
However, if the destination doesn’t allow Kratom, it may not be legal to take it on board. He should follow the rules and regulations regarding Kratom as his goal to smooth his journey.
Age Must Be Above 18
A traveler must be at least 18 to carry Kratom while flying. A person below this age is not eligible to use and take Kratom.
We know that there are also age restrictions when purchasing Kratom. It depends on what location a person belongs to, what form of Kratom he desires to purchase, and the brand he has chosen to buy it from.
In states where Kratom use, and sales are legal, Kratom brands and stores may ask the user to verify that he is 18. Reputable online best Kratom brands also have general measures in place to ask the age.
A traveler needs to be 21 to buy Kratom from recreational dispensaries. In general, a Kratom user has to be 18 or older.
In some cases, he has to be 21. If the airport officials find Kratom in the bag, they may ask the traveler about the age.
Kratom Packaging Should Be Original During Air Travel
There will be delays in boarding if there are speculations of illicit drugs. As a result, a traveler should carry Kratom in its actual packaging.
This is because the packaging will consist of a list of ingredients and help the customs verify the details. This way, the traveler will not be doubtful of being a drug smuggler on the trip.
If someone is caught carrying Kratom in a separate container, they may undergo a drug test on Kratom powder. This will lead to delays.
So, choose a simple way and make sure that Kratom is available in its original packaging. This will be advantageous to everyone.
Be Prepared To Respond If Interrogated
The traveler must be able to reply to any queries regarding your Kratom. TSA or Customs may verify and ask multiple questions as to why a person is bringing Kratom.
He must be upfront, confident, and honest with them about their premium Kratom products. Everything will take place more smoothly as a result of this.
Final Thoughts
Overall, if you plan to carry products when you travel on a flight, there are a few things to remember before you carry out the plan.
Firstly, you need to be aware of the legality of Kratom in the place where you’re traveling. You should also take the product in the actual packet or original container.
This will shut out delays and ensure the safest travel experience with Kratom. Second, you must be transparent when replying to questions from the TSA and Customs.
Providing exact information regarding the product will ensure a more hassle-free experience.
Additionally, if you want safe consumption, check out the best brands that sell organic Kratom USA.
Choose a reliable Kratom vendor or Kratom company with popular Kratom strains and high-quality new dawn kratom products.
City blogger Isam Olaxes aka Jajja Iculi has this evening been shot dead by assassins that followed him on boda-boda.
Olaxes become a second person to be shot in Kyanja in a space of hardly one week. Labour State Minister Col. Charles Engola was shot dead by his own bodyguard in the same area.
He was travelling in a Toyota hiace vehicle at the time he met his death. A statement posted on his Facebook page confirmed he was shot dead.
“We are saddened to inform you that Jajja Iculi has been shot. More info to come”.
The logger has been controversial and most times he would record himself on important issues and would bash whoever he disagrees with.
The government of Uganda has reportedly released the funds meant for allowances of Kyambogo University government sponsored-student’s, following the protests by students over the delay of their allowances, among other concerns.
According to Professor Eli Katunguka Rwakishaya, the Kyambogo University Vice Chancellor, the Ministry of Finance, Planning and Economic Development has released Shs1.34 billion to cater for among others upkeep and living out allowances of government-sponsored students.
“The government has released an additional expenditure limit amounting to Shs1.34 billion against the vote 304-Kyambogo University Non-wage recurrent budget to cater for among others upkeep and living out allowances” Prof Katunguka said.
Kyambogo University had previously communicated to the Ministry of Finance, Planning and Economic Development, the challenges brought in by #Covid-19, and requested for a supplementary budget of 1,694,402,000 shillings to cater for upkeep and living out allowances for 2,455 government-sponsored students this very semester. The Vice Chancellor Katunguka revealed that, following this move, the university informed and requested the students to be calm until the university receives a response from the government.
Prof Katunguka, during the press briefing on Friday afternoon, revealed that all these challenges are as a result of the disruption by the outbreak of the Covid 19 and admission of another cohort of students, who were admitted in 2021/2022 academic year, caused the University to run for three semesters instead of two semesters.
He further said that the third admission caused financial constraints on the current budget including living out allowances for government-sponsored students.
During the financial year 2022/2023, the university budgeted for upkeep and living out allowances for government-sponsored students for the two semesters totaling to shillings 3,388,804,000 and this has since been paid out to all beneficiaries.
According to the Vice Chancellor, the university management, during the meeting held on Thursday 4th May, has agreed to utilize these funds to pay upkeep and living out allowances. “The process of uploading warrants on the system and making arrangements to pay students have started, therefore, students are requested to remain calm as the process of remitting funds to their accounts progress” said the vice chancellor. It should be noted that on 2nd May, Kyambogo university students spent the entire day in a protest which led police to use excessive force to stop them from demonstrating.
Student’s concerns leading to the strike include; delay of payment of upkeep and living out allowances of government-sponsored students for the financial year 2022/2023, delay in release of examination results, surcharge levy and delay payment of staff salaries. Responding to the student’s concern of surcharge of Shs50,000, incurred after a period of eight weeks as per the university payment fees policy, Prof Katunguka explained that surcharge is not a compulsory charge and it can be avoided if student settles their fees obligation within the stipulated time. According to the information obtained from the Academic Management Information System (ACMIS), 11,911 students, this is about 54 percent of the enrolled students have fully paid their fees and are registered on ACMIS, and they did not incur any surcharges because they paid according to the policy.
On the issue of delay in staff payments, the VC said that the government has affected payments on 3rd May, and all staff have received their salaries. He said that some allowances like top up and teaching claims are yet to be paid as soon as funds are available.
Professor Katunguka revealed that students are fronting these issues to fulfil their political agendas. He claims there are external political forces that are fueling students to demonstrate. According to him, when the current guild president was campaigning, his slogan was to remove surcharges, so he is now trying to prove to the electorate that he is advocating for them through organizing such protests.
Parliament has passed the Lotteries and Gaming (Amendment) Bill, 2023 that will revise the existing tax of 20 per cent under the existing law to 30 per cent for a gaming activity.
Clause 48(1) of the Lotteries and Gaming Act, 2016 states that ‘an operator of a casino, gaming or betting activity issued with a licence under this Act shall, in addition to taxes prescribed by law, pay a gaming tax at the rate prescribed in Schedule 4’.
Schedule 4 of the existing law prescribes the rate of tax as 20 percent of the total amount of money staked, less the pay outs/winnings, for the period of filing returns.
While presenting a report on the Bill during on, the Deputy Chairperson of the Finance Committee, Jane Pacutho said the 20 per cent tax rate will be maintained on sports betting.
She added that there are multiple start and stop points within some games which make it hard to enforce the tax point for winnings, including punter sessions for games like roulettes, poker and slots. “Consequently, casinos are instead using the end of day reconciliations to account for withholding tax which would only be on the days when they have made losses. Such an occurrence is highly unlikely for a casino because betting/gaming companies are always winning,” reads the committee report in part.
The committee emphasized the need to adjust the current policy and ensure the tax is only imposed on winnings and not the staked amounts. “To plug this revenue leakage, the measure proposes to remove the 15 per cent withholding tax on payments for winnings of gaming and instead increase the gaming tax to a rate of 30 per cent across the gaming sector,” Pacutho said.
The shilling opened the month and week trading at the 3730/3740 levels, weakened briefly to lows of 3745/3755 but later gained ground to open Friday’s session at the 3715/3725 levels helped by healthy flows from NGOs, commodity exporters, interbank and other sectors that outweighed the limited demand pockets during the week.
The unit is anticipated to trade within the 3680 – 3780 trading range in the coming days with a possible pick-up in activity in the market.
Money Markets were liquid throughout the week with overnight yields trading between 10.00% -11.50%. Bank of Uganda mopped the excess liquidity through Repos and the BOU Bills. There was no scheduled government securities auction during the week. Bank of Uganda will hold a Shs185 billion on Wednesday May 10, 2023.
The Kenya shilling is still weak overall with the Central Bank selling some dollars during the week but overall still some residual dollar requirement in the market keeping the unit on the Blackfoot. Interbank activity is picking up slowly. The unit still likely to trade within the 136.00 -138.00 levels in the near term.
The dollar gained some ground during Thursday’s session with some dollar demand seen during the session after the Federal reserve hiked its benchmark rate by 0.25% to 5.00%- 5.25%. The market is closely digesting and keen to see the next action by the Federal Reserve in the coming months.
The European Central Bank also hiked its benchmark rate by 0.25% to 3.75% with continued high inflation in the Eurozone. The Euro closed Thursday’s session at lows of $1.1011.
The market awaits the Bank of England policy stance next week anticipating a 0.25% rate hike. The pound touched highs of $1.2598 on Thursday and closed the day at $1.2572.
Brent Crude traded at $73.42 a barrel and West Texas Intermediate at $69.41 a barrel. Oil prices traded lower than previous weeks as concerns about a lingering recession and impact on demand, continued rise in interest rates and the overhanging concerns about banks.
