Browsing: Central Bank of Kenya

When it comes to extractive industries, Tanzania is one of Africa’s richest countries. From minerals to marine resources, Tanzania has it all. It is the World’s only source of Tanzanite, a blue gem said to be 1000 times rarer than diamond. It is home to the highest mountain on the continent and Lake Tanganyika, the World’s deepest lake.

How to manage the extractive industries is an insurmountable task that has seen many countries plunge into endless civil wars. At the center of this strife is a matter of much deliberation but one word can describe the complex mechanisms that are required to efficiently manage the extractive industries, transparency.

Transparency in this case is a very touchy subject after all, who wants to let the world know the details of the 100 years renewable contract that they have signed with a multi-national corporation?

However, that is exactly what transparency demands, stifle …

The first quarter of 2020 has had mixed results for the economies of East Africa. The weather, a key determinant of inflation rates, has been good. Forex rates have remained stable in the region as a balance between dollar demands and diaspora remittance has been easily reached. Eastern Africa is one of the regions in Africa with the highest growth rate and this has remained so in the first two months of the year, with Ethiopia and Rwanda still in the driver’s seat. In terms of foreign direct investments, Kenya and Ethiopia are still the leading pack, with Kenya receiving investments in ICT and manufacturing while Tanzania is receiving investments in mining. Rwanda is a leading conference destination and Uganda is receiving investments in renewable energy as well as in oil and gas.

Kenya and Rwanda are still leading in developing policies that promote trade and investments, while Ethiopia is …

Africa has seen a sharp rise in mergers and investments over the last decade.  The total deal value of merger and acquisition (M&A) transactions in Africa increased by 32%, rising from US$16 billion in H1 2018, to US$21 billion in H1 2019 according to different wheel dealers in Africa.

The appetite for African share has been born out of an economy that is showing one of the fastest growths in the world. Also, the continent has launched various initiatives to lure foreign direct investment into the continent. These initiatives include the Africa Continental Free Trade Area as well as individual country policies. Rwanda and Ethiopia, for example, have been introducing reforms that have made other partners in the region rethink their positions.

According to UN Conference on Trade and Development (UNCTAD), out of the total $9 billion invested in the region, Ethiopia took the biggest amount while Rwanda showed increased …

Banque Misr, Egypt’s second-largest bank, has announced plans to enter the Kenyan market as it seeks lending deals in East Africa and serving Egyptian firms operating in the region.

To fund the Kenya expansion the state-run bank plans to borrow $250 million from international lenders this year. The Kenyan expansion will also coincide with planned entry into Somalia and Djibouti.

“We are in talks with two international institutions on loans with competitive interest rates,” said Mohamed Eletreby, Banque Misr chairman.

Mr Eletreby added that Banque Misr could enter Kenya through setting up branches or representative offices.

Also Read: Absa Kenya’s US$ 100 million kitty for women entrepreneurs

The bank has branches in the UAE and France, as well as units in Lebanon and Germany and representative offices in China, Russia, South Korea and Italy.

The Banque Misr announcement marks the latest declaration of interest by an Egyptian lender to enter …

Barclays Bank Kenya has successfully changed its name to Absa Bank Kenya marking an end to centuries of the domination of the banking sector by British banks. This follows the acquisition of Barclays Plc operations in Africa in 2017 by Absa Bank of South Africa in restructuring by the London-based lender.

These are some of the changes experienced in several countries across Africa as the Absa brand cements its presence in the continent, a market that was firmly held by Barclays brand for almost a century. Similar changes have happened in Ghana, Botswana, Seychelles and Tanzania.

With these changes, the bank is knocking doors in one of the biggest global lenders, the Multi Investment Guarantee Agency (MIGA) with an aim of creating a broader investment base for individual banks in several African countries.

Different Central Banks in the region require commercial banks to have a minimal investment base to enable …

Three years after the Banking (Amendment) Bill, 2016, became law, it is time now for Kenyans to brace themselves for expensive loans.

The law dictated that commercial lending rates could not be more than four per cent above the Central Bank of Kenya (CBK) benchmark rate.

But now, borrowers are at the mercy of the exploitative banking sector after regaining the freedom to vary lending rates.

MPs desert parliament for law to pass

On Tuesday, November 5, 2019, parliamentarians deserted Kenyans giving President Uhuru Kenyatta a victory in his decision to repeal the interest rates cap.

As is the tradition when important matters affecting Kenyans are being discussed, only 161 MPs were present to vote. It is a constitutional requirement that any law that needs amending has to have at least 233 MPs supporting it for it to pass.

By failing to overturn Kenyatta’s reservations on the Finance Bill, 2019, …

Stanbic Bank has been extensively named in a regional airline’s woes. South Sudan based Air Afrik says it will send home an estimated 200 employees home due to loss of business occasioned by the lenders’ faults.

The carrier hit major turbulence following the loss of a $20 million plane-leasing contract with the government of South Sudan.

Since the loss of the contract and court case against Stanbic Bank the company has been reviewing its process; fitting people into the right jobs and in the process, some roles have become redundant.

“We understand this is a challenging time for our team, but these steps were necessitated following Stanbic Bank’s negligent errors, oversight and unlawful actions,” the company said in a statement

The court case stems from a banking transaction gone awry. According to an official letter to the Central Bank of Kenya, the South African-owned bank admits to having regrettably made …

The Kenya Shilling showed the first sign of loosing ground against major currencies since the Central Bank of Kenya introduced new notes and decided to recall the Ksh 1, 000 note in order to curb illicit flow.

Commercial banks have quoted the Shilling trading against the US dollar at Ksh 101.95/102.15 per dollar, compared with 101.80/102.00 at last week’s close. This weakening despite being marginal is the highest rate the currency has traded this year. (https://richmondartcenter.org/)

At the beginning of June, Central Bank of Kenya announced measures to introduce new currencies meeting a long overdue constitutional requirement to introduce new faces of the currency. In doing so, the CBK governor also announced that the Ksh 1,000 note in circulation was to be recalled and removed from the list of legal tender in Kenya due to illicit use in the country and the region.

Holders of the old …

Digital payments in Kenya have been ruled by Safaricom through its revolutionary MPesa services. This is despite there being other local players like Airtel Money and Telkom’s  T-Kash competing for the local share of mobile money transfer.

Safaricom has gone global targeting international remittances and linking with global players like Western Union and Pay Pal to make trans-border  transfers.

However, during the just concluded East Africa EuroMoney Conference locally hosted by Central Bank of Kenya, the CBK governor Dr Patrick Njoroge noted that these innovations though first tested and embraced in Kenya, must not sleep on their laurels.

Dr Njoroge noted that Kenya was able to enjoy the innovation and domesticate the technology, which has drawn the admiration of global players and replicated world over.

However, it is the entry of global players like WhatsApp, WeChat, Alipay and Apple Cash which have made it easier to transfer money, purchase items …