• Kenya’s $168Bn plundered development loans were taken over 11 year period between 2010 and 2021
• In one instance, the OAG raised an issue with the missing drawdowns for three loans from BELFIUS Bank and Unicredit totaling €29,510,462 (Sh4.1billion).
• The audit examined how 39 commercial loans valued at $168billiom (Sh1.36 trillion) during the time were used, and whether they were borrowed legally.

The Office of the Auditor General has opened a can of worms on the possible diversion of loans and plunder of funds disbursed to Kenya for development over the past 10 years.

A Special Audit by Auditor General Nancy Gathungu, on loans Kenya took between 2010 & 2021 shows that the country received $ 167.7 billion (Sh1.13 trillion) in the consolidated funds accounts however, the accountability of the funds is in question.

The revelations come at a time when President William Ruto has already gazetted the Presidential Taskforce on …

• Kenya’s second-hand clothes imports rose to Sh27.8 billion in the one year to March 2024. 
• The second-hand clothes trade has thrived over the years and has since attracted traders from China, Kenya’s top source market, to set base in Gikomba
• The Mitumba Consortium Association of Kenya recently noted that the number of people venturing into the sector is increasing at a fast pace

The demand for second-hand clothes (mitumba) in the Kenya is on the rise, as more people, mostly from the informal sector, opt for the relatively low-cost commodity.

Picturing this is the latest quarterly data by the Kenya National Bureau of Statistics (KNBS), which shows the value of mitumba imports by traders rose to Sh27.8 billion in the one year to March 2024.  This is from Sh20.9 billion in the previous year, representing a 33 per cent jump.

Higher quality and relatively lower prices for used attire …

• Kenya’s parastatal set for privatisation, the National Oil Corporation of Kenya could face closure if the government does not inject new funding or get investors fast.
• The Corporation’s strategic plan expired in 2020, and Management has yet to develop another strategic plan to cover the current period.
• The corporation’s latest audited results for June 2023 show that it is running on a negative working capital position with its current liabilities outstripping current assets. 

National Oil Corporation will need to seek financial support, restructure its operations, or face bankruptcy after its debts exceed its assets by Sh9.1 billion ($70.96 million).

Kenya’s Auditor General Nancy Gathungu has warned that the firm is technically insolvent amidst the government’s push for a strategic investor to run the parastatal.

This means that the National Oil Corporation of Kenya could face closure if the government does not inject new funding or get investors fast.

The corporation’s …

• Treasury Bonds Auction for the month of July recorded only a 2 percent subscription rate 
• The domestic bond market has faced challenges, despite the lower yields on Eurobonds
• This high yield reflects investor concerns about Kenya’s economic stability and fiscal health​

Investors have shied away from government bonds as the treasury only managed to raise 2 per cent of the Sh20 billion it had targeted in its July tap sale.

This saw the government only get Sh487.5million as the investors instead preferring to pump funds into short-term Treasury bills on expectations that interest rates will soon go up in the country.

The bonds are instruments through which the government will use to borrow from the market.

The domestic bond market has faced challenges. Despite the lower yields on Eurobonds, yields on Kenyan government bonds remain high, with 10-year bonds yielding 17.759 per cent as of early July 2024.

This high …

• Kenyan Shilling to Reach Sh138 this month as effects of global rates and heavy rains come alive
• Additionally, the minor decline in the foreign exchange reserves between April and May signals interventions in the forex market by the CBK.
• The CBK is expected to leave rates unchanged at 13 per cent at its June meeting to support these dollar inflows and provide positive yields to investors.

Financial experts are now predicting that the Kenyan shilling will depreciate to Sh138 against the US dollar by the end of June 2024.

The analysist from pan African market insights firm Stears, say that the Kenyan shilling witnessed large swings in May, after appreciating 2.09 per cent between May 2 and 16. This saw the local currency resume a consistent depreciation to close the month at Sh133.37 against the dollar.

Stears notes that although the currency remained relatively unchanged compared to April, on average, …

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