A court battle is looming between the county government and traders in buildings that have been clamped over unpaid land rates.
Business owners held a protest march yesterday, accusing the county administration of failing to consult them on the matter.
The county secretary and members of the Executive have been leading a crackdown on land rates defaulters. They go around town and shut businesses located on property with outstanding debts.
Kericho Investors and Business Associations (Kiba) Secretary General Erastus Orina said they had constituted a legal team to seek a court’s interpretation on the matter.
“The county government has avenues, ways and procedures of following land rate defaulters, but what it is doing is illegal. There is no nexus between business permits and payment of land rates,” Mr Orina said.
Orina, a lawyer, further argued that the contracts tenants had with their landlords were separate from the legal agreements property owners had with the county government.
Kiba chairman Samuel Ngugi also expressed concerns over a steep hike in business permits fees.
“Our comparison study between Kericho and other counties such as Eldoret and Nakuru indicate that there is a difference of about Sh10,000. This is not fair considering the size of the town and its economic activities,” said Mr Ngugi.
Finance Executive Patrick Mutai said they had decided to adopt the “twinning” of land rates payments and the issuance of single business permits to recover more than Sh500 million land owners owed the county.
“Previously, we used to give out waivers but the response was poor. But now the issuance of single business permits for 2019 will be based on valid land rates and a land rent clearance certificate from the Department of Lands, Housing and Physical Planning,” Mr Mutai said.
The Finance executive asked landlords to visit county revenue offices in the sub-counties to verify their land rates payment status.
“This applies to all plot owners who have a genuine certificate of lease or letters of allotment,” he said, adding that they would not accept any certificate of land clearance not issued by the county government.
Lands Executive Barnabas Ng’eno said they had given plot owners with genuine title deeds or allotment letters up to March 15 to obtain clearance certificates.
“All parcels of land whose rates will remain unpaid or outstanding, or have not been developed, will revert to the county at the expiry of the deadline,” Mr Ng’eno said.
Ng’eno also advised banks and other financial institutions that intended to use ownership documents of leasehold land for loan applications to first obtain consent from the county government.
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World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.