Rwanda Draws 10-year Capital Market Master Plan

President Uhuru Kenyatta has directed the National Treasury and the Kenya Revenue Authority (KRA) Board to expedite vetting of KRA staff as the Government moves to boost tax collection.

He emphasized that concrete measures must be taken to enhance revenue mobilization by ensuring that all eligible taxpayers meet their tax obligation and corruption in tax collection is eradicated.

“Central to the achievement of this objective is the need to engender a culture that promotes excellence while firmly punishing acts of misconduct amongst staff involved in revenue collection, approved ” he said.

President Kenyatta spoke Wednesday at Kenyatta International Convention Centre when he presided over this year’s National Taxpayers’ Day.

During the occasion, clinic various companies and individuals received awards for leading in paying tax with the Eastern Produce Kenya Ltd scooping the best Corporation Tax award.

He applauded those who have been steadfast in paying their taxes, describing them as present day heroes and heroines who have chosen to be patriotic by supporting the country’s development agenda.

The President assured that the Government has embarked on ensuring sustenance of macroeconomic stability through low inflation, sustainable fiscal deficit, a stable currency exchange and affordable interest rates.

“My Government is addressing the challenges through expenditure rationalization and tax revenue mobilization initiatives both of which should help alleviate the pressure on domestic money market,” President Kenyatta said.


He said the country’s political freedom must go hand-in-hand with financial independence, which can only be guaranteed when all Kenyans commit to pay their taxes.

“Let us all commit to do our part in realizing the dream of economic independence,” he said.

Private sector

President Kenyatta observed that since coming into office, his Government has prioritized facilitation and engagement with the private sector to stimulate rapid economic growth.

He said reforms implemented by the Government have improved Kenya’s ranking in paying taxes from 146 in 2014 to 102 in 2015.

“This improvement is largely attributable to the introduction of electronic services which have enabled taxpayers to more conveniently handle their tax matters,” he said.

The President affirmed the Government’s commitment to ensuring more uptake of electronic services platforms by public institutions to lighten the burden for the public in accessing Government services.

He pointed out that automation of tax administration services –which has empowered Kenyans to transact tax affairs without the need to travel long distances – has also helped to improve public service delivery and Kenya’s attractiveness in respect of Doing Business Indicators.

“My Government will continue prioritizing service digitization with a view to making Kenya the preferred business hub in Africa,” he said, adding that there is no turning back in improving Kenya’s Doing Business Ranking to below position 50 in the next few years.

Curbing wastage

National Treasury Cabinet Secretary Henry Rotich outlined measures his Ministry has taken to boost revenue collection including establishing a debt and audit programme which will help KRA increase revenue and curb wastage.

Measures to be instituted include reduction of leakages by reviewing the administration of customs and VAT collection. This will help KRA to rapidly identify and enforce debt collection.

Mr. Rotich said improvement on the auditing process will particularly target transfer pricing, construction of mega projects and tax compliance of large retailer and wholesalers.

He said the National Treasury will monitor – on a daily basis – revenue collection and daily clearance at the port of Mombasa.

Other speakers included KRA Commissioner General John Njiraini.
The Capital Market Authority of Rwanda is hosting a strategic planning roundtable meeting designed to initiate the process of developing a ten-year Capital Market Development Master Plan (CMMP).

The three-day off-site meeting has brought together international and regional experts as well as high-level Rwandan officials from the public and private sectors.

Among the delegates were renowned capital market experts from 14 countries across the globe who included: USA, buy Israel, approved India, Malaysia, Spain, UK, Netherlands, Uruguay, Mauritius, South Africa, Kenya, Uganda, Zambia and Tanzania.

The Chairperson of the Rwandan capital market authority who is also the Executive Director of the Center for Financial Markets at the Milken Institute, Ms Staci Warden speaking to the press at the end of the roundtable stressed that “Rwanda invited capital market experts from around the world to share lessons on how to develop the Rwanda’s capital market.”

She said the idea is to create an “ecosystem to accelerate and sustain economic growth that leads to more savings and investments via the capital markets.”

Warden further stressed that “Investment to be channelled to companies will help them grow bigger, hire more people, more people have more savings and they have more money to invest.”

Rwanda’s Minister of Finance and Economic Planning, Ambassador Claver Gatete who graced the meeting noted that Rwanda has made major strides in socio-economic and financial sector development in recent years, but will require deeper, more liquid capital markets to channel foreign and domestic savings to support the socio-economic growth of Rwanda.

Experts from 14 countries across the globe attended the convention in Kigali, Rwanda
Experts from 14 countries across the globe attended the convention in Kigali, Rwanda

“The 10-year Capital Market Master Plan will cement efforts by the CMA to position Rwanda’s capital markets as the preferred financial economic centre for domestic, regional, and international fund flows,” said Gatete.

The Minister emphasised the new strategy is expected to “position the capital markets to play a pivotal role in mobilising long-term funding to support the development of Rwanda.”

Sunil Benimadhu, the Chief Executive of the Stock Exchange of Mauritius (SEM) hailed Rwanda for the intitiave, saying his country looks forward for a partnership with Rwanda’s capital market in the future.

The Capital Market Authority (CMA) was established by the Government of Rwanda to nurture wealth by facilitating the development of an orderly, fair, transparent and efficient capital market in the country.

The organisation of the roundtable meeting was unique by design as consultants will now start the process of drafting the master plan with inputs from experts at the meeting.

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