Browsing: Central Bank of Kenya (CBK)

The World Bank Board of Directors has approved a US$750 million (Ksh75.9 billion) International Development Association (IDA) credit for Kenya, in the latest move by the global lender to channel funds to the East Africa State.

A member of the World Bank Group headquartered in Washington D.C, IDA is an international financial institution which offers concessional loans and grants to the world’s poorest developing countries

The loan comes amid concerns over the country’s ballooning public debt which crossed the Ksh5.1 trillion (US$50.4 billion) mark in September 2018, with possibilities of going Ksh5.6 trillion (US$55.4 billion by close of the year.

READ:Tough times: Kenya piles Kshs 2.5 billion debt in a day

On Tuesday, Central Bank of Kenya (CBK) governor Patrick Njoroge said the country’s headroom for new borrowing has shrunk since it tapped the US$2.1 billion Eurobond earlier this month, which part of it has gone towards debt refinancing.…

In yet another review of the country’s macroeconomics, Kenya’s Central Bank has held the benchmark lending rate at 9 per cent, meaning banks in the country will continue giving loans with a maximum interest rate of 13 per cent.

This is under the Banking Act which caps lending rates at four percentage points above the CBK rate.

The decision was reached on Monday by CBK’s decision making organ-Monetary Policy Committee (MPC), which meets every two months to review the outcome of its previous policy decisions and recent economic developments.

The meeting was held against a backdrop of domestic macroeconomic stability, sustained optimism on the economic growth prospects, improving weather conditions in most parts of the country and increased uncertainties in the global financial markets.

This is the sixth time the MPC is retaining the benchmark rate at nine per cent after bringing it down from 9.5 per cent in July …

Kenya has unveiled a mortgage refining facility-Kenya Mortgage Refinance Company (KMRC), a short in the arm in President Uhuru Kenyatta’s affordable housing scheme under the Big Four Agenda.

KMRC is a non- deposit taking financial institution under the supervision of the Central Bank of Kenya (CBK).

The company was incorporated on April 19, 2018 with the single purpose of providing long-term funds to primary mortgage lenders (banks, micro finance banks and saccos) in order to increase the availability and affordability of mortgage loans to Kenyans.

READ:Mortgages more unaffordable as Kenya house prices increase in 2018

KMRC shareholders and funding

The company was established as a private public investment with majority ownership by the private sector at 80 per cent and government 20 per cent. Its current shareholders comprise: the national treasury and planning; eight (8) commercial banks; eleven (11) deposit taking Savings and Credit Co-operatives (Saccos) and one (1) …

The MSME sector employs approximately 14.9 million Kenyans and contributes an estimated 28 per cent of the GDP…

Invest In Africa (IIA), a Not-for-Profit SME focused entity, has rebranded its online platform—African Partner Pool (APP)—in a renewed effort to enhance its support for small players grow their businesses.

The platform will now be known as ‘Biashara.Now’, a boost for SMEs seeking to grow their businesses in Kenya.

This comes as the entity marks two years of its online platform which links Micro, Small and Medium Enterprises (MSMEs) with procurement opportunities available in the private sector across value chains, promoting local content and business sustainability.

READ:Invest in Africa push for increased business on the APP platform

In just two years, the organization has been able to register 2,250 MSMEs on its platform.

It has also recruited over 20 partners who have provided 67 tenders worth Ksh270 million (USD2.9 million) which have been won by MSMEs so far.

Additionally, over 200 MSMEs have been trained and over Ksh300 million …

Kenyans transacted over KShs1.9 trillion between April 1, 2018, and June 30, 2018. …

Equity Bank says branches are making it easy for SMEs to access products that are right for them

 Equity Bank continues to enhance its Small and Medium-sized Enterprises (SME) offering through its supreme banking branches, as the bank embraces new technology and ways of working to meet the retail customer needs.

Thanks to the growing adoption of digital banking which has seen banks shift from brick and mortar expansion (branches), the space at banking halls has enabled SMEs to largely access supreme banking which has been targeting high net worth individuals.

Currently, 96 per cent of transactions at Equity are being done on digital platforms, the Nairobi Securities Exchange (NSE) listed lender has reported.

READ:Banks in Kenya battling for digital lending space

“This has allowed the bank to transform the branches into advice-giving arms.  This branch based venture offers preferential services customized banking solutions with exclusive privileges and unrivalled …

The funds will support the Kenya Mortgage Refinance Corporation

The World Bank has approved a USD250 million International Bank for Reconstruction and Development (IBRD) loan to support housing projects in Kenya.

The funds are expected to enhance access to affordable housing finance for Kenyans who are unable to access long-term housing finance.

The Kenya Affordable Housing Finance Project (KAHFP) will support the establishment and operationalization of the Kenya Mortgage Refinance Corporation (KMRC), a largely private sector-owned and non-deposit taking financial institution under the supervision of the Central Bank of Kenya.

KMRC’s goal is to drive affordability of mortgages by providing more long-term funding to financial institutions, an incentive to enable them to offer long tenure loans to homebuyers.

The project will also assist the Ministry of Lands and Physical Planning to improve property registration and address structural constraints in the land management system in Kenya. 

“We believe that Kenya’s vibrant …

Farmers could soon start pocketing 80% of gross earnings from Coffee

President Uhuru Kenyatta is committed to revive the country’s coffee industry if latest indicators are anything to go by.

One of the biggest initiatives announced by the government is the rehabilitation of 500 pulping stations (factories) in 31 coffee-growing Counties across the country.

Coffee farmers are also set to benefit a Cherry Advance Revolving Fund being set by the government; a kitty President Kenyatta says will be operational from July 1 when the 2019-2020 financial year commences. The current financial year (2018-19) ends on June 30.

In the coming fiscal year, the government will unveil Ksh3 billion (US$29.6 million) to be accessed at a much lower three per cent (3%) interest rate per annum.

This is much affordable to farmers whom a huge number currently depend on Savings and Credit Co-operatives (SACCOS), which offer loans at a …

Mobile subscription in the country grew 6.2 per cent in the second quarter of 2018

A proliferation of mobile applications on popular online stores is exposing Kenyans to increased cyber attacks and fraud, a latest sector statistics report by the Communications Authority of Kenya (CA) has revealed.

This comes in the wake of a fast growing mobile subscription in the country which grew 6.2 per cent in the second quarter of 2018(October-December).

According to CA’s sector statistics report for the financial year 2018-2019, mobile subscriptions in Q2 grew to 49.5 million up from 46.6 million in the first quarter(July-September).

Data subscription during the period increased to 45.7 million from 42.2 million in the previous quarter, meaning Kenyans are increasingly getting connected to the internet.

This has created a field day for fraudsters who are taking advantage of innocent members of the public with little knowledge on cyber attacks.

The report …