Friday, March 29

East Africa

Uganda National Oil Company
  • The Uganda National Oil Company (UNOC) is directly importing petroleum products from Vitol Bahrain, aiming to reduce reliance on Kenyan firms and mitigate high fuel prices. 
  • UNOC’s direct importation and sale of fuel to OMCs in Tanzania and Uganda is a significant step towards fostering stronger regional ties, promoting economic growth, and ensuring energy security. 

Uganda National Oil Company (UNOC) has started the sale of petroleum products to oil marketing companies in both Uganda and Tanzania.

This is part of a broader strategy to test the waters before UNOC embarks on a direct importation agreement with the global oil titan, Vitol Bahrain. This maneuver signals a new era in East Africa’s energy dynamics, especially following a cooling of relations between Uganda and Kenya over fuel supply mechanisms.

Breaking New Ground: Uganda National Oil Company Direct Importation Deal

For years, Uganda’s fuel supply chain was heavily dependent on Kenyan OMCs. However, …

Read More
Lufthansa 000bb931 1600
  • Effective March 1 2023, Lufthansa Group appointed Kevin Markette as the new General Manager for the East African region.
  • This encompasses Kenya, Ethiopia, Uganda, Rwanda, Burundi and Tanzania.
  • Effective June 3, 2023, Lufthansa will expand its current connection from Frankfurt, Germany into Nairobi for the summer flight schedule from five to seven weekly flights.

The Lufthansa Group has re-affirmed its commitment to East Africa by relocating the commercial responsibility for the passenger business back to Kenya.

Effective March 1 2023, Lufthansa Group appointed Kevin Markette as the new General Manager for the East African region.

This encompasses Kenya, Ethiopia, Uganda, Rwanda, Burundi and Tanzania.

With his position and team permanently based in Nairobi, he will be able to better focus on the needs of regional customers and through a physical presence in the region be closer to the market.

Markette succeeds Dr. André Schulz, who has been appointed Head of …

From Left to Right: Cabinet Secretary - National Treasury and Economic Planning - Prof. Njuguna Ndung’u and Commissioner of Insurance and Chief Executive Officer (IRA) Godfrey Kiptum share a light moment during a courtesy call to the CS at his offices at the National Treasury buildings on 6th February 2023.
  • Insurance industry paid claims worth $400Mn in three months from October 2022 to December 2022 representing a 3percent increase compared to the third Quarter of 2022 that paid claims worth $391Mn. 
  • Latest statistics from the Insurance Regulatory Authority (IRA) indicate that the number of claims reported to the insurers were 2,040,600, a 12.6 percent increase compared to 1,811,141 claims reported in Q3,2022. 
  • General liability claims paid went up by 16.8 percent to 14,085 claims worth $42Mn from 12,055 claims paid worth $40Mn billion in the previous quarter. Non – Liability claims paid hit 1,714,723 claims worth $170Mn  representing a  1.8 percent from 1,684,698 claims worth $160.31Mn reported in Q3 2022. 

Insurance industry paid claims worth $400Mn in three months from October 2022 to December 2022 representing a 3 percent increase compared to the third Quarter of 2022 that paid claims worth $391Mn. 

According to the Quarter 4 of 2022 claims

www.theexchange.africa

Ride-hailing firm Bolt has raised $713 million in fresh funding.

In a statement, the European firm says it will use the funds to accelerate the expansion of its existing mobility and delivery products across its markets.

“The funds will go into expanding the company’s network of ride-hailing services, food delivery and micro mobility in Africa and Europe,” the company said.

According to the firm, these include investments towards enhancing safety features on the platform for drivers and riders, deepening vehicle ownership initiatives, driver and courier empowerment and sustainability projects.

Bolt will also use the funds to boost its new under 15-minute grocery delivery service, Bolt Market recently launched in Europe.

The new investment round now values Bolt at about $4.75 billion, which is more than double its last private valuation of $2 billion.

The funds were backed by new investors who include Sequoia, Tekne and Ghisallo, as well as Bolt’s …

Kenya construction projects

Kenya’s construction industry is projected to grow by up to 3.9 percent this year, according to a new report by the Architectural Association of Kenya (AAK).

The report, dubbed Status of the Built Environment report, AAK however cautions that the growth can only happen if there is no repeat of the strict lock down that were implemented in the country last year after the emergence of the coronavirus pandemic.

The report says growth will be driven by several factors among them a sharp recovery in output levels compared to periods when works were not permitted or were severely restricted in 2020.

“In 2021, the construction industry is expected to improve, assuming a slowdown in COVID-19 cases and recovery in the global economy,” the report notes.

Kenya to start construction of double decker highway as World Bank consents to funding

The report notes that the second quarter of the year, for …

South Sudan Kenya visa

Kenya has been lauded for its decision to waive the requirement of obtaining a visa to enter the country by citizens of the Republic of South Sudan who hold valid passports.

In a statement, the East African Community (EAC) Secretary General, Dr. Peter Mathuki, said that the move was in line with the decision announced by the Chair of the EAC Heads of State, President Uhuru Kenyatta, during the 21st Ordinary Summit of the EAC Heads of State held on 27th February, 2021.

“This demonstrates the goodwill among the EAC Heads of State in promoting regional integration and revamping relations, which is set to boost intra-EAC trade,” said Dr. Mathuki.

Other Partner States that have also waived visa requirements for South Sudanese citizens are the Republic of Rwanda and the United Republic of Tanzania.

Dr. Mathuki lauded the Republic of South Sudan, which has in the spirit of reciprocity also …

Kenya's Inflation will remain stable

Kenya’s inflation is expected to remain well anchored within the target range, against the backdrop of COVID-19 shock and its spillover to the economy.

This is according to a new report by Central Bank of Kenya (CBK) which has reveals that a hike in food and fuel prices has been impacting the rate of inflation.

In July for instance, year on year inflation rate, which is measured by the Consumer Price Index (CPI) was 6.44 percent, in July 2021.

The Kenya National Bureau of Statistics attributed the rise in inflation increase in prices of commodities especially food and transport.

Food and non-alcoholic beverages prices increased by 8.84 percent, while housing, water, electricity, gas and other fuels rose by 6.03 percent,” KNBS noted.

Transport was however the commodity with the biggest hike, after prices shot up by 10.33 percent between July 2020 and July 2021.

The CPI increased by 0.20

Equty Bank

The top 10 banks in 2020 in Kenya accounted for 77.7 percent of industry assets, 80.7 percent of loans and 78.6 percent of deposits, with the proportions largely unchanged from their 2019 levels.

This is according to a new report by Kenya Bankers Association which reveals that over the same period, the bottom 10 banks accounted for 2.5 percent, 2.2 percent and 2.0 percent of industry assets, loans, and deposits, respectively.

During the period under review, banking sector total assets expanded in 2020 by 12.4 percent, ending the year at Sh5.4 trillion from Sh4.8 trillion in 2019, data from the Kenya Bankers Association has shown.

The 12.4 percent strong growth in assets, compared with 9.4 percent in 2019, was driven by a faster expansion in non-loan assets, mainly investments in government securities, which grew by 18.5 percent, compared to 6.7 percent growth in gross loans and advances.

Bankers: Poor financing

retirement pension Kenya

The slow growth in the retirement benefits assets in Kenya in the second half of 2020 has been attributed to the Covid-19 pandemic.

Retirement Benefits Authority Chief Executive Officer Nzomo Mutuku revealed the sector only grew by 5.77 percent from Sh1.322 trillion to Sh1.398 trillion, owing to the pandemic which adversely affected the financial markets and the wider economy in the first half of last year.

Major consequences of the pandemic in the country include massive job losses, which put contribution towards retirement schemes under pressure.

Mutuku said that fund managers and approved issuers in the country held majority of the assets amounting to Sh1.286 trillion.

During the period under review, Mutuku revealed that schemes continued to invest heavily in government securities with the asset class accounting for 44 percent of the total assets under management.

This was followed by immovable property which accounted for 17 percent, investments in guaranteed …

Subscribe to Our Newsletter

STAY INFORMED

Unlock Business Wisdom - Join The Exchange Africa's Newsletter for Expert African Business Insights!

Stay ahead of the game with our weekly African business Newsletter
Recieve Expert analysis, commentary and Insights into the enviroment which can help you make informed decisions.