News

Kenya’s shilling was firm against the dollar yesterday due to the intervention of the Central Bank of Kenya (CBK) early this week.
At 12:25 pm, commercial banks quoted the shilling at 105.25/45, barely changed from Wednesday’s close of 105.25/35.
The CBK Monday and Tuesday market intervention was timely as substantial dollars sold boosted the shilling as the local currency edged closer to its record low of 106.80, set in October 2011.

The Capital Markets Authority (CMA) has advised county governments to raise cash from the public through sale of bonds to finance major infrastructure projects.
CMA acting Chief Executive Officer Mr. Paul Muthaura said with the commencement of new CMA guidelines next month, devolved governments will be able to issue infrastructure bonds.
Mr. Muthaura said guidelines to issue infrastructure bonds were ready and would soon be published to enable counties to structure asset-backed securities (ABS) to raise money from the capital markets.

Kenya Airways board and the top management future hangs in the balance in a drastic plan meant to return the national airline on the path to profitability.
The government is preparing a “turnaround plan” aimed at making the carrier that has been in the red over the last three years return to profit. National Treasury Cabinet Secretary Mr. Henry Rotich yesterday told a senate committee that the plan was at an advanced stage.

The Insurance Industry is ready to absorb risks emanating from the forecast El Nino rains which is expected from next month.
Insurance Regulatory Authority (IRA) Chief Executive Officer Mr. Sammy Makove said the 49-member industry has adequate covers to compensate for insured losses incase of the El Nino.
He said unlike 1997, when the industry was caught off-guard, it was now well prepared to cushion insured businesses mainly in agriculture, trade, building and construction sectors.

The shilling was little changed against the dollar last week, but was seen under pressure due to demand from importers and a general weakening emerging currencies against the dollar.
At 9:23 am on Friday, commercial banks quoted the shilling at 105.00/105.20 per dollar, barely changed from 104.95/105/15 on Thursday.
The shilling has been edging closer to its all time low of about 107 to the dollar, set in October 2011.
The Kenyan currency, down 16 percent this year, has come under pressure from a broad rally in the dollar, Kenya’s high current account deficit and poor tourism inflows after attacks by militants.

Kenya’s sound macroeconomic management and economic resilience built over the years has enabled the country to maintain strong economic growth and stability.
The Director General of Budget, Fiscal and Economic Affairs in the National Treasury Dr. Geoffrey Mwau, said Kenya’s economic growth prospects continues to remain stable due to the strong foundation of economic transformation.

Kenya has to strive greatly in mobilizing resources to mitigate against the impacts of climate change in the country.
National Treasury Cabinet Secretary Mr. Henry Rotich said such impacts of climate change include droughts and floods which have destroyed human life, property, infrastructure and enhanced spread of diseases.
“Kenya has embarked on preparing a comprehensive and effective policy framework to facilitate the deployment and flow of climate finance in a transparent manner in a bid to overcome the challenge of mobilizing resources to mitigate impacts of climate change,” said Mr. Rotich.

 The government has provided Ksh4 billion loan while the African Export-Import Bank has approved $200 million bridging loan to Kenya Airways (KQ) to help the national carrier to service its debts.
National Treasury Cabinet Secretary Mr. Henry Rotich told a senate committee last week in Parliament buildings that the KQ troubles are being audited before far-reaching actions are taken with regard to the Ksh25.74 billion loss incurred by the airline.

KRA Times TowerThe Kenya Revenue Authority (KRA) collected Ksh76.83 billion in taxes last month. The continuing focus on growing inflows from the excise duty streams through ongoing crackdown on manufacturers.
Statement of actual revenue published by National Treasury Cabinet Secretary Mr. Henry Rotich, indicates the taxman had a good start to the financial year that begun in July.
Full year target is Ksh1.215 trillion, which is 16.19 percent or Ksh170 billion higher than the Ksh1.05 trillion target for last fiscal year ended June 30.

The struggling sugar sector has once again found itself between a rock and a hard place, with very little solutions as socio-political and economic dynamics choke it while pushing the real issues to the sidelines.
The current ping pong between the political class will not help a sector that is now becoming synonymous with slowdown and bickering hence the need for sober resolutions that will help the millions of farmers who depend on this sweetener.
Close to a decade, the government has tried to protect the sector by limiting imports, but it seems this did not do much to turn around the fortunes of the sector as rising competition from regional players and their pricing strategies threaten the existence of local sugar farmers.

cbkThe Central Bank of Kenya (CBK) has been in the money markets greater part of this week seeking to mop up Ksh13 billion in excess liquidity.
The CBK uses repurchase and term auction deposits to soak up liquidity, making it costly to hold dollars and in turn giving the shilling support.

Ministries, State Departments and Agencies (MDAs) have been urged to assign experienced and competent officers who are able to spearhead budget making process in a bid to ensure that the government policies and programmes are well captured and funded accordingly.
National Treasury Principal Secretary Dr. Kamau Thugge said such officers include MDAs’ heads of budget, accounting, finance, planning, and human resource management and development.

Ksh25 billion excess liquidity in the market was mopped up yesterday by the Central Bank of Kenya (CBK) in an effort to help stabilize the shilling.
The bank uses term auction deposits and repurchase agreements to absorb liquidity, which makes it costly to hold onto dollars and in turn lends support to the shilling.
The shilling held steady with scarce dollar demand , a day after the bank injected dollars into the market to bolster the local currency as it neared its all-time low.

itaxKenya Revenue Authority (KRA) has set up an iTax Support Centre in Nakuru town to help taxpayers apply for pin registration, file returns and make enquiries.
Nakuru Deputy Governor Mr. Joseph Ruto said the county is automating tax collection, adding that it has implemented successfully automation of payment for a single business permit.

DSC 8712

Cabinet Secretary, The National Treasury, Henry Rotich  makes keynote address today, Wednesday, August 26, 2015 during the Launch of the Sector Working Groups and Preparation of 2016/2017 -2018/2019 Medium Term Budget at the Kenyatta International Convention Center in Nairobi.

DSC 8672

Cabinet Secretary Planning and Devolution, Anne Waiguru makes her remarks today, Wednesday, August 26, 2015 during the Launch of the Sector Working Groups and Preparation of 2016/2017 -2018/2019 Medium Term Budget at the Kenyatta International Convention Center in Nairobi.

The Central Bank of Kenya (CBK) has pumped into the market more dollars to prop up the shilling after weakening to hit 106.15/35 on Monday’s close.
The shilling weakened close to its all-time low in early trading yesterday, weighed down by corporate dollar demand and US currency’s strength. At 10.22 am, the shilling traded at 106.60/70 close to the low of about 107 in October 2011; but finally closed at 105.5 in the afternoon against the greenback.

Kenya has introduced Public Private Partnerships (PPPs) to spur the participation of the private sector in infrastructure development in the country.
The Director of Public Private Partnerships (PPPs) in the National Treasury Engineer Stanley Kamau, said the introduction of PPPs projects in Kenya’s infrastructure development is a major milestone for the government in providing services at an accelerated and an affordable rate.
In an interview with the media at the National Treasury, Engineer Kamau said the PPPs infrastructure projects the government has engaged are unique because it is the first time projects have deviated from the traditional procurement process.

DSC 8292
Cabinet Secretary, the National Treasury, Henry Rotich makes opening remarks today, Monday, August 24, 2015 when he officially opened a one-day IFMIS e-procurement Training for County Assemblies Clerks at the Kenya School of Monetary Studies in Nairobi.

 DSC 8252
Chairman, the Societies of the Clerks of County Assemblies Edward Libedi makes his remarks today, Monday, August 24, 2015 during the official opening of a one-day IFMIS e-procurement Training for County Assemblies Clerks at the Kenya School of Monetary Studies in Nairobi.

After showing some stability last week, the Kenya shilling yesterday exchanged at 106 to the dollar even as Central Bank of Kenya (CBK) attempted to mop up excess liquidity of Ksh14 billion to stall the drop.
Last Friday, the shilling exchanged at Ksh105.60/70 to the dollar. Since the year began the shilling has lost nearly 14.8 percent of its value against the US dollar.
Analysts attribute the fall to the strength of the US dollar globally, demand for foreign currency from telecommunications and energy firms, and Kenya’s widening current account deficit.

Kenya will be the first African country to host the sixth Tokyo International Conference on African Development (TICAD) Yokohama Action Plan in Nairobi during the second half of 2016. This will enable Kenya to strategize on the best methods to seek financial and technical support from Japan within the framework of TICAD initiative to implement priority projects in line with the Vision 2030 blue print.
The country will also utilize the forthcoming Kenya/Japan Annual Bilateral Consultations for Economic Cooperation for 2015/2016 financial year to discuss areas of future cooperation and other issues of mutual interest between the two countries.