NAIROBI, Aug 28 (Reuters) – Kenya’s national assembly has
rejected a proposal by the finance ministry to increase the
minimum core capital for banks to 5 billion shillings ($48.17
million), saying it would stifle the sector’s growth, the head
of parliament’s budget committee said.
In his budget speech in June, Finance Minister Henry Rotich
proposed increasing the minimum core capital requirement for
banks progressively from 1 billion shillings to 5 billion
shillings by December 2018.
NAIROBI, Aug 21 (Reuters) – A drop in the value of the
Ugandan shilling is likely to limit economic expansion
this year by driving up prices and forcing the central bank to
raise interest rates further, the country’s finance minister
The shilling is down 23 percent against the dollar this
year, amid expectations the Federal Reserve will raise U.S
NAIROBI, Aug 13 (Reuters) – Barclays Bank of Kenya
has earmarked 30 billion shillings ($295 million) for lending to
small and mid-sized business as it seeks to catch up with profit
growth at rivals.
Foreign funds have been investing in Kenyan lenders in
recent years, attracted by growing trade flows and the rise of
mobile-phone banking which is helping to win new customers.
NAIROBI, Aug 6 (Reuters) – Kenya’s coastal resorts have seen
a pick-up in bookings by western visitors, suggesting a tourist
industry devastated by Islamist attacks may be starting to
recover, tourism executives said on Thursday.
Holidaymakers shunned Kenya’s beaches and wildlife safaris
after attacks blamed on al Shabaab militants from neighbouring
Somalia triggered warnings against non-essential travel to the
coast by Western governments.
NAIROBI, Aug 5 (Reuters) – Kenya’s central bank surprised
the markets on Wednesday by keeping its benchmark lending rate
unchanged at 11.50 percent to allow recent
tightening to fully take effect.
The median forecast from a Reuters poll of 11 analysts
suggested the central bank would lift interest rates by 50 basis
points to 12 percent to support the shilling.
NAIROBI, Aug 4 (Reuters) – Loss-making Kenya Airways
, which has been hit by a slump in tourism in the
African country, may require a $500-600 million bailout, Kenya’s
finance minister said on Tuesday.
The carrier, part-owned by Air France-KLM, has not
made a profit in three years and sunk deeper into the red in the
year through March with a pretax loss of 29.7 billion shillings
($294 million). Debts also climbed and shareholder equity turned
NAIROBI, Aug 4 (Reuters) – Kenya’s Equity Bank
aims to double profits from its foreign markets in east Africa
and increase users of its mobile banking service to boost
earnings, its chief executive said on Tuesday.
The lender, which has the highest number of depositors in
east Africa, posted a 12 percent jump in pretax profit to 12.1
billion shillings ($120 million) in the first half, thanks to
growth in commissions, foreign exchange trading and the
contribution of its foreign subsidiaries in the region.
NAIROBI, July 30 (Reuters) – Kenya Airways sunk
deeper into the red in the year through March, sending its
shares plummeting on Thursday, but CEO Mbuvi Ngunze said the
tourism slump that sparked the losses may have bottomed out.
The airline, part-owned by AirFrance-KLM, has
faced rising debts due to new plane purchases and has been in
the red for the past three years as Kenya’s tourism industry was
hammered by Islamist militant attacks in the country.
NAIROBI, July 24 (Reuters) – Residents of Kenya’s capital
Nairobi enjoyed rare traffic-free roads on Friday morning as
many businesses shut down or cut their trading hours ahead of a
visit by U.S. President Barack Obama to his father’s homeland.
Police prepared to close major thoroughfares for several
hours before Obama arrived, and financial markets said they
would bring the shutters down early in the hurly-burly city of
more than 3 million.
NAIROBI, July 9 (Reuters) – Kenya’s new mining law, which
will give the government a 10 percent stake in new projects and
aim to spur growth of the sector, should be in place in
September, the minister in charge of the plan told Reuters.
Kenya exports titanium, fluorspar and manganese and has
reserves of coal, niobium and rare earths, but mining currently
accounts for less than 1 percent of its economic output.