Thursday 25 May 2017
(Xinhuanet 05/24/17)
Kenyan, Chinese and British business organizations on Tuesday signed a Memorandum of Understanding (MOU) to boost cooperation, officials said. Kenya China Economic and Trade Association (KCETA), British Chamber of Commerce Kenya (BCCK) and Kenya Private Sector Alliance (KEPSA) sealed an agreement to form a tripartite partnership bringing on board the private sector representatives from the three countries. KCETA Chairman Zhang Haifeng told a media briefing in Nairobi that the MOU will promote and advance cooperation in areas of common interest. The MOU has also recognized and agreed on principal areas that will guide in the overall implementation of the agreement.
(Xinhuanet 05/23/17)
Kenya has concluded preparations to host a business delegation from Shenzhen in early June, a government official said on Monday. Kenya Investment Authority (KenInvest) CEO Moses Ikiara told Xinhua in Nairobi that the delegation comprising of government and business officials will be led by the Mayor of Shenzhen. "The delegation will be in Kenya to seek investment opportunities in the construction and manufacturing sectors," Ikiara said on the sidelines of the Health and Tourism Forum. According to KenInvest, China's role in Kenya's economy has been increasing in the recent past few years. "If you look at the average Foreign Direct Investments for the period between
(Bloomberg 05/22/17)
Kenyan corn millers warned the government twice in the past six months the country faced a shortage of the staple that’s left strategic reserves at less than a day’s supply. Grain processors advised the government in November that a shortfall was looming and in February suggested that a 50 percent import duty be removed to enable shipments, said Paloma Fernandes, chief executive officer of the Cereal Millers Association. The nation, which declared a drought emergency in February, only gazetted the...
(Reuters (Eng) 05/22/17)
Countries in sub-Saharan Africa need to get their budgets in order, diversify their economies and look after their poorest people. If they do that, there is no reason why the region cannot have the strong growth needed to meet the aspirations of a young and growing population. That, at least, is the three-pillared prescription from the International Monetary Fund as expressed by one of its top Africa researchers, Celine Allard, in an official IMF blog post and podcast. Allard co-authored...
(Business Daily 05/19/17)
Kenya plans to open up a specialty and orthodox tea auction in Mombasa in a move expected to make the country the pioneer purple tea sales host. East African Tea Traders Association (EATTA), which runs the globally renowned Mombasa auction, says plans are at an advanced stage to roll out the trading in purple, green and orthodox tea sales at the weekly auction. The Tea Directorate said the auction would play a key role by creating clear structures for the...
(Business Daily 05/19/17)
National Bank of Kenya (NBK) NBK expects to close a Sh4.4 billion shareholder loan by end of September to shore up its capital, which has remained below regulatory requirements for 15 months. The mid-sized lender has been seeking the debt funding from its top two shareholders: National Social Security Fund (NSSF) and the Treasury, since June last year following the collapse of a planned Sh13 billion rights issue. “We are engaging our shareholders. We have done presentations to them and...
(Standard Digital 05/19/17)
Kenya Pipeline Company remained profitable despite an increasing preference for Tanzania by importers of petroleum products in the neighbouring landlocked countries. The company yesterday said it posted a 16 per cent growth in profit after tax to Sh8.4 billion for the year to June 2016 compared to Sh7.2 billion reported in 2015. It attributed the growth to improved fuel supply and a cost-cutting strategy. The rise in profit was on account of revenue growth from Kenya even with revenues from...
(Business Daily 05/19/17)
Poultry farmers in Nakuru County could soon require written permission from the government in order to rear more than 30 heads of chicken. This is according to the Urban Agriculture Promotion and Regulation Bill, which, if passed, will see those keeping poultry without a licence fined half a million shillings or facing a jail term of not more than 24 months or both. “Any person who intends to keep more than 30 heads of poultry shall make a written application...
(Reuters (Eng) 05/19/17)
When rich countries wrote off billions of dollars of African debt in 2005, they hoped governments would think twice about borrowing again in costly foreign currencies. Over a decade later, most sub-Saharan African countries still rely on U.S. dollar-denominated debt to finance their economies. Some investors say this is sowing the seeds of future debt crises if local currencies devalue and make dollar debt repayments more expensive. Aside from South Africa and Nigeria, governments have not yet done enough to...
(Bloomberg 05/18/17)
Uganda, which wants to start building part of a multi-billion-dollar rail line to Kenya, must wait for its neighbor to decide on plans for its portion of the track before the project’s main funder makes money available, the country’s finance minister said. Export-Import Bank of China will arrange financing for Uganda only when it’s sure that Kenya “is willing and able to extend its railway to the border, so that they don’t fund a white elephant,” Finance Minister Matia Kasaija...
(Capitalfm Business 05/18/17)
Kenya is the leading Africa Prospect Indicator for Micro Business, Consumer, and Retail markets. This is according to Nielsen's 4th Africa Prospects Indicator report which attributes Kenya's performance to strong agricultural output, a resurgent tourism sector as well as increased FDI resulting in infrastructure projects that have spurred the diversified economy. Kenya has been in the upper regions of the API ranking since inception beating Cote d'Ivoire, Tanzania, South Africa and Ghana respectively in the top five. The report says...
(Bloomberg 05/18/17)
Steinhoff International Holdings NV plans to list its African assets separately as the acquisitive retailer seeks a new prize for shareholders following this year’s failed merger talks with Shoprite Holdings Ltd. The company said Wednesday it will seek to list businesses including clothing retailer Pepkor and furniture chain JD Group Ltd. on the Johannesburg Stock Exchange, about 18 months after moving its primary listing to Frankfurt from the South African commercial hub. The new business could be worth as much...
(Bloomberg 05/17/17)
Kenya announced steps to rein in food prices that are rising at the fastest pace in five years and providing campaign fodder for the opposition ahead of elections in August. The government will spend as much as 6 billion shillings ($58 million) subsidizing corn prices and waiving duties on milk and sugar, Agriculture Secretary Willy Bett told reporters Tuesday in the capital, Nairobi. The measures come as the Treasury prepares a supplementary budget to deal with the surging cost of...
(Reuters (Eng) 05/17/17)
Africa-focused oil company Tullow Oil Plc said it encountered 75 meters of net oil pay in two zones at an exploration well in Northern Kenya. The Emekuya-1 well, located in the South Lokichar basin in North-Western Kenya, would eventually be developed to full field development, the company said on Wednesday. The well has proven oil charge across a significant part of the Greater Etom structure, Tullow said. "The discovery not only adds more recoverable resources to the current portfolio, but, along with Etom-2 and Erut-1 (wells), establishes the 'northern triangle' part of the South Lokichar Basin as an independent production hub," Morgan Stanley analyst Sasikanth Chilukuru said.
(Financial Times 05/16/17)
Latest step by UK telecoms group to simplify assets as talk continues of bigger deals. Vodafone has transferred a 35 per cent stake in Kenyan operator Safaricom to Vodacom, its listed South African business, in the UK telecoms group’s latest move to simplify its sprawling global empire. The €2.3bn switch will be paid for in new Vodacom shares issued to Vodafone and means the Kenyan company will now be controlled at arm’s length. Under the leadership of chief executive Vittorio...
(Standard Digital 05/16/17)
While the Government officials have put on a brave face, trying to resolve food crisis, Ministry of Agriculture bosses seem to be holding their breath as they watch the unfolding food crisis across the country. They know too well what shortages of the different agricultural commodities mean, especially if they have been keen on what similar situations in the past have resulted into. This is especially in regards to maize shortage and its impact on the retail prices of flour...
(BBC News Africa 05/16/17)
South Africa's biggest mobile phone operator, Vodacom, is buying a 35% stake in Kenya's largest mobile firm, Safaricom, for $2.6bn (£2bn). The stake in Safaricom is being sold by Vodafone as part of its drive to streamline its African businesses. The deal will extend the South African firm's influence in Kenya. It will also help increase the use of Safaricom's popular M-Pesa money transfer service across Africa. M-Pesa, launched 10 years ago in Kenya by Safaricom, lets people without bank...
(Bloomberg 05/16/17)
When the impoverished West African nation of Niger imposed a ban on donkey exports last year, a small community of traders just over the border in Nigeria was devastated. “Before the ban, you could see thousands of donkeys here,” said Mohammed Sani, a 45-year-old trader in the Nigerian town of Jibiya, as he wiped the sweat off his brow. “Now look at them: there’s no more than 50, crippling the business.” Donkeys are being slaughtered at an alarming pace to...
(Bloomberg 05/12/17)
Kenya’s biggest bank by assets expects the government to remove a cap on commercial interest rates in the second half of this year after the measures failed to spur lending and instead put revenue under pressure. “I am very confident that a workable solution between the industry and lawmakers would be achieved most likely by the second half of this year,” KCB Group Ltd. Chief Executive Officer Joshua Oigara said in an interview Tuesday in the capital, Nairobi. “It’s something...
(Daily Nation 05/11/17)
President Uhuru Kenyatta on Thursday met Prime Minister Theresa May and sought an agreement to guarantee access of Kenyan exports to the United Kingdom market after the country exits the European Union. At a meeting at Number 10 Downing Street, President Kenyatta also spoke strongly about strengthening bilateral relations with Britain, and closer security cooperation, especially in regard to Somalia. President Kenyatta arrived in Britain on Wednesday night to attend the Third London Conference on Somalia, and to meet the...

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