👨🏿‍🚀TechCabal Daily-Sendy delivered, but at what cost?

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Have you see the new iPhones? They come in delicious candy tones.

There is also a new Apple Watch, the Series 9, and it is faster and carbon-neutral! Also after 11 years, Apple has ditched the Lightning plug for a USB-C cable just as the EU has been asking it to do to reduce e-waste🌍.

Sendy’s firesale ignited by $1million monthly burn rate

Sendy delivered, but at what cost?

The Kenyan logistics startup which shut down operations last month, and is now seeking a buyer, was reportedly burning through a whopping $1 million every month.

A little back story: According to sources familiar with the comapny, the business took a nosedive when costs rose due to factors like iterative fuel price hikes from 2022 and the August 2022 Kenyan elections that had many people apprehensive. The sources explained that as a result, many manufacturers scaled down production, which meant fewer deliveries for Sendy. But they still had to cough up money for expensive fuel. As Sendy continued making deliveries at a loss, it was banking on a market correction and order volumes to return to normal. However, the fundraising environment worsened, forcing the company to lay off staff to extend its runway.

There’s more. Sources also say that Sendy has undisclosed financial obligations that’s made it tricky for them to find a buyer. These obligations, which may have to be absorbed by the buyer, are a crucial reason why a sale has been complicated.

Sendy has two main products; Sendy Transport and Sendy Fulfillment, but it seems what potential buyers are really after is Sendy’s nifty technology. According to a source, they’ve got top-notch software for booking and tracking transport vehicles.

Zoom out: Wasoko and Sabi are among the companies rumoured to be interested in buying Sendy, but they have declined to comment regarding sendy at this time. In August, Sendy’s CEO, Mesh Alloys, initially said a deal would be closed in two weeks, but it’s all gone quiet on that front.

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Kenya to implement digital ID program

President Ruto plans to reduce corporate tax

Kenya plans to cut corporate income tax (CIT) on earnings  for resident firms to 25 percent from the current 30 percent. The country is trying to  align with average international rates to attract foreign investors and increase tax obligation compliance with the businesses that are already in the country. a more competitive 25 percent. 

Side bar: Kenya’s tax rate is  higher than the global average of 23 percent. Per Business Daily,  759,164 firms registered for corporation tax for the year ended June 2022,  but only 84,428 paid the dues remitted quarterly. 

When will this happen? The reduction will come into effect from  July 2024 and end in June 2027. However, this means that companies  that already pay preferential tax rates as low as half the standard rate on profit will have to step up to the new 25%.