Duncan's Feed
Oct 15, 2012

Kenya rates set to tumble if cbank refocuses on growth

NAIROBI, Oct 15 (Reuters) – Kenya’s benchmark interest rate
looks set to fall if the central bank takes advantage of slowing
inflation to attack the eye-watering commercial lending rates
stifling growth.

A year ago inflation was ripping through the economy and
even global Twitter streams were humming with protests at
policymakers’ slow response.

Oct 9, 2012

Kenya president blocks parliament bonus pay

NAIROBI (Reuters) – Kenyan President Mwai Kibaki on Tuesday blocked $110,000 end-of-term bonuses members of parliament awarded themselves after protests and a public outcry at a time when the state has raised taxes to plug a hole in its finances.

Lawmakers in east Africa’s biggest economy, already among the best paid in the world, voted to triple the bonus they will all receive when their five-year term ends in January to 9.3 million Kenyan shillings ($109,500).

Oct 5, 2012

Kenya passes new taxes on resource, telecoms firms to lift revenue

NAIROBI, Oct 5 (Reuters) – Kenya has approved new taxes
targeting oil and mining firms and mobile phone-based money
transfer services to help plug a growing funding gap, though the
move could potentially scare off foreign investors.

A 20 percent levy will now be charged on sales of property
or shares in oil, mining and mineral prospecting firms. A 10
percent excise duty was set on fees charged for money transfer
services by mobile phone service providers, banks, money
transfer agencies and other financial service providers.

Sep 28, 2012

Kenya inflation falls, points to further rate cuts

NAIROBI, Sept 28 (Reuters) – Kenyan inflation fell for the
tenth straight month in September, the statistics office said on
Friday, paving the way more interest rate cuts to support a
slowing economy.

Year-on-year inflation fell to 5.32 percent from
6.09 percent the previous month, a faster fall than predicted in
a Reuters poll which had forecast a decline to 5.40 percent.

Jul 28, 2012

Rwanda demands respect from the West after aid cuts

NAIROBI (Reuters) – Rwanda’s foreign minister on Saturday accused Western governments of using aid to treat African states like children, after two countries cut cash to Kigali because of its policy in Congo.

The United States has blocked $200,000 in military aid to the central African nation and the Netherlands suspended 5 million euros of aid after a United Nations interim report said Rwanda was backing rebels in the Democratic Republic of Congo.

Jul 26, 2012

Kenya’s biggest banks see stronger H2

NAIROBI, July 26 (Reuters) – Kenya’s biggest bank by assets,
KCB, and its largest bank by depositors, Equity
, expect to increase earnings in the second half of the
year as lending picks up due to falling interest rates, the
banks said on Thursday.

Lenders in east Africa’s largest economy faced a tough first
half due to high interest rates, which crimped growth in loan
books and increased non-performing loans, after policymakers
adopted a tightening monetary stance in the final quarter of
last year.

Jul 18, 2012

US proposes new trade deal with East Africa bloc

NAIROBI, July 18 (Reuters) – The United States has proposed
a new trade deal with the East African Community (EAC) common
market, underscoring the growing interest of American businesses
in investing in Africa, a senior adviser to President Barack
Obama said on Wednesday.

The five-nation African bloc of 130 million people has
doubled intra-regional trade in the five years after it
introduced a customs union in 2005.

Jul 5, 2012

Kenya surprises with bigger-than-expected rate cut

NAIROBI, July 5 (Reuters) – Kenya’s Monetary Policy
Committee softened its nine-months long hawkish stance on
Thursday with a bigger-than-expected 150 basis points rate cut,
sending the shilling down against the dollar and drawing
criticism from some analysts.

The Monetary Policy Committee cut the central bank rate
by 150 basis points to 16.5 percent, saying its
tightening stance had worked, although some risks lingered.

Jul 4, 2012

Wary of sanctions, Kenya cancels Iran oil deal

NAIROBI, July 4 (Reuters) – Kenya is cancelling an agreement
to import 4 million tonnes of Iranian crude oil per year because
of international sanctions against Iran, its top energy official
said on Wednesday.

Kenya’s move earlier this week to turn to Iran for up to
80,000 barrels of oil per day had surprised Western powers.
Kenya is a key strategic ally in the U.S.-led fight against
militant Islam in east Africa.

Jun 20, 2012

Kenya oil refinery to add merchant operations

NAIROBI, June 20 (Reuters) – Kenya’s sole refinery will
start buying its own crude oil next month to start operating as
a merchant refinery, a move that is expected to lower retail
fuel prices in the country, its chief executive said on
Wednesday.

CEO Brij Mohan Bansal said the plant, which processes 1.6
million metric tonnes of crude a year, will no longer be just a
toll refinery after signing a $250 million credit line from
Standard Chartered Bank to finance crude
imports.