Emerging Markets Update - InFocus: Kenya & Tanzania

Kenya Parliament has approved a 5% cut to the Corporate Income Tax Rate and also cut personal taxes for citizens; as part of President Uhuru Kenyatta’s measures to cushion the economy | The Shilling has continued to drift lower and has today touched its lowest level for more than 22 years against the USD Dollar | This is part of a continuing trend of depreciation since early February (see chart below)

Tanzania In an effort to enable African nations to use savings to battle the novel Coronavirus, Tanzania’s President John Magufuli has called on international creditors to cancel debts owed to them | Mr Magufuli has so far rejected calls to lock down the largest city of Dar es Salaam with fears it would cause too much damage to Tanzania’s economy | Tanzania spends around US$300m every month servicing its debts with almost US$100m of that going to the World Bank

To discuss how the above may affect your money transfer requirements, please contact your Currency Dealer at Heritage Pay on +44 (0) 207 117 2934.

None of the information in this article is, nor should be construed as financial advice. All foreign exchange transactions involve risk and you should always seek your own independent financial advice before entering into any foreign exchange transaction.