Insight type: Legal Alert

In the recent landmark decision of Symon Wairobi Gatuma v. Kenya Breweries Limited & 3 Others, SC Petition No. E023 of 2023, the Supreme Court of Kenya (SCOK) addressed the complexities surrounding the impact of changes in employment terms, particularly remuneration, on employee rights within the context of parent and subsidiary companies.

The Nigerian Upstream Petroleum Regulatory Commission (the Commission) released the Production Curtailment and Domestic Crude Oil Supply Obligations (the Regulations) in 2023 pursuant to section 8 (c) and section 109 of the Petroleum Industry Act 2021 (the Act). The Regulations aim to ensure that licensees and lessees meet production quotas set by the Commission and also ensure they supply the crude oil needs of domestic refineries on a willing buyer, willing seller basis.

As part of the process of reformation of the electricity sector in Nigeria, the Nigerian Electricity Regulatory Commission (NERC) pursuant to the powers conferred on it by section 230 of the Electricity Act 2023, issued orders for the transfer of regulatory oversight of the electricity market from NERC to the Edo, Oyo, Enugu, Imo, Ekiti, and Ondo State Electricity Regulatory Commission (SERC).

The Nigerian virtual asset and cryptocurrency space has been the subject of regulatory scrutiny in recent times. The Securities and Exchange Commission (SEC or the Commission) is keen to ensure the safety of investors in the space, while encouraging innovation. To achieve this objective, the SEC has undertaken several actions this year.

The enactment of the Companies and Allied Matters Act (CAMA) 2020, introduced a significant change in Nigerian corporate law by allowing the registration of private companies with single shareholders. Under the previous law, the incorporation of any company required a minimum of two shareholders.

The National Bank of Ethiopia (NBE) recently unveiled a groundbreaking Foreign Exchange Directive, merging previous directives into a unified and comprehensive document known as Foreign Exchange Directive No. FXD 01/2024 (Foreign Exchange Directive). Dubbed the ‘Green Directive’ by the NBE Governor, this framework brings in several new regulations and flexibilities in the foreign exchange regime, which are anticipated to impact business operations, investment, and financing activities nationwide. 

The Central Bank of Nigeria (CBN) recently issued new Regulatory and Supervisory Guidelines for Bureau de Change (BDC) Operations (the Guidelines). This follows an exposure draft issued for stakeholder input in February 2024. The Guidelines issued on 22 May 2024 supersede the Revised Operational Guidelines for Bureau de Change in Nigeria issued in November 2015.

 

In an important Supreme Court of Kenya decision in the case of Stanbic Bank Kenya Limited v Santowels Limited, Petition No. E0005 of 2023, the court has held that interest rates on loans advanced by banks and financial institutions are subject to the provisions of Section 44 of the Banking Act, Cap 488 (the Banking Act) and as such, banks and financial institutions are required to seek the approval of the Cabinet Secretary responsible for matters relating to Finance (CS) , before increasing interest rates on loans advanced to their customers.

The Securities and Exchange Commission (SEC or the Commission) has released a pre-licensing framework for fintechs that operate in the digital assets and investment space. The Commission on 21 June 2024 issued A Framework on Accelerated Regulatory Incubation Program (ARIP) for the Onboarding of Virtual Assets Service Providers (VASPs) and other Digital Investments Service Providers (DISPs) (the ARIP Framework). This follows the proposed major amendment to the Commission’s Rules on the Issuance, Offering Platforms, and Custody of Digital Assets issued on 15 March 2024, which is yet to be finalised.