Among other things, the derivatives market is essentially about mitigating financial market risk, and derivative contracts are the financial instruments used for that purpose. A derivative contract derives its value or price from an underlying asset such as currency, commodities, stocks, or bonds. Derivative contracts provide opportunities for financial market participants to capture value from anticipated price movements of the underlying assets they may not directly own. In a derivative contract, the parties take positions based on their expectation of future market movements, aiming to take advantage of price fluctuations.
Insight type: Legal Alert
Succession and Family Law in Kenya – A Year in Review (2023)
As we start the new year, we highlight some important legal developments in 2023 which impacts on estate and succession planning and emphasises the need for families to do their estate and succession planning effectively noting the changing legal landscape.
Tax Tribunal Rules Withholding Tax on Interest Due and Payable Upon Actual Payment, Not Accrual
In Tanzania, the issue of when withholding tax is due has been a subject of debate and interpretation for businesses, tax practitioners, and regulators alike. The principal issue to this discussion is whether withholding tax on interest is due on “actual payment” or on “accrual” of the same.
Establishment of the Startup Support and Engagement Portal
On 19 October 2022, former president Muhammadu Buhari signed the Nigeria Startup Act (the Act) into law. Prior to this, the country had no specific, encompassing startup legislation. The Act creates a foundational legal and institutional framework for supporting startups in Nigeria.
Directive to Disconnect Switching Companies, PSSPs, and SAs from NIP Outwards System
On 5 December 2023, the Nigerian Inter-Bank Settlement System (NIBSS) issued a notice directing all deposit money banks, merchant banks, payment service banks, microfinance banks, mortgage banks, and mobile money operators (MMOs) to delist non-deposit-taking financial institutions (NDFIs) such as switching and processing companies, Payment Solution Service Providers (PSSPs), and Super Agents (SAs) as beneficiary institutions on their respective NIP funds transfer channels.
Revolutionising African Trade: Kenya Takes the Lead in Promoting PAPSS
As the African Continental Free Trade Agreement (AfCFTA) advances through various negotiation phases, several stakeholders have introduced operational tools to facilitate its implementation. One of these tools is the Pan-African Payment and Settlement System (PAPSS), which aims to play a key role in unlocking trade with the African Continental Free Trade Area. PAPSS, which hopes to achieve full Central Bank participation by year-end, welcomed the Central Bank of Kenya in October, making it the tenth African Central Bank to join the platform. Earlier this month, during the launch of the AfCFTA’s Trade and Development Centre at Strathmore University, President William Ruto announced that Kenya had won the bid to host PAPSS.
NDPC Releases a Guidance Notice on Filing of Compliance Audit Returns
The Nigeria Data Protection Commission (NDPC) has recently published a Guidance Notice on the filing of Data Protection Compliance Audit Returns (CAR). In view of the new cycle of CAR filing, which will commence in 2024, the guidance notice provides Data Controllers and Data Processors with the opportunity to demonstrate accountability and also comply with one of the compliance metrics required to be included on the National Data Protection Programme (NaDPAP) Whitelist.
Uganda’s Court of Appeal Upholds Employers’ Right to Terminate Employees with Notice or Payment
The Court of Appeal of Uganda (the Court) has reaffirmed an employer’s unrestricted right to terminate the employment relationship by providing notice or payment in lieu of notice. Bwogi Kalibbala of M/s MMAKS Advocates represented Stanbic Bank (Uganda) Limited (the Bank) in this matter.
New Provisions Anticipated to Enhance Access to Notarial Services under Notaries Public Act, 2023
A Notary Public in Nigeria is authorised to carry out certain official acts including attesting to or certifying the authenticity of a deed or other legal documents such as birth certificates, school certificates, biodata pages of international passports, marriage certificates, etc. He also carries out the functions of administering oaths and witnessing the execution of local and international agreements. As these acts are undertaken in official capacity, they are recognised internationally as a means of deterring fraud.
NCC Releases Conditions for Offering Closed User Group Services
The Nigerian Communications Commission (NCC) has released a new set of conditions for telecom operators offering Closed User Group (CUG Services in the country. CUG services are a type of telecom service that allow mobile subscribers to send text messages or make and receive calls from any member associated within the group or other subscribers outside the CUG at a subsidised, discounted or fixed fee. The CUG configuration provides certain benefits and limits access to these services to the defined set of group members.