Duncan's Feed
Nov 7, 2012

Kenya c.bank cuts key rate 200 bps as inflation falls

NAIROBI, Nov 7 (Reuters) – Kenya’s central bank chopped its
benchmark lending rate to 11 percent from 13 percent on
Wednesday, following up on an even bigger cut in September, to
support the economy as inflation comes back down.

The central bank of east Africa’s largest economy is trying
to get monetary policy back on an even keel after rapid credit
growth last year caused the shilling to slump and inflation to
soar, forcing the bank to ramp its key rate up to 18 percent.

Nov 6, 2012

Kenya Airways sees grim year on security situation

NAIROBI (Reuters) – Kenya Airways expects to recover from a first-half loss but full year profits will still be less-than a quarter of last year’s, hurt by the euro zone crisis and insecurity at home, the airline said on Tuesday.

The carrier, which is 26.73 percent owned by Air France-KLM (AIRF.PA: Quote, Profile, Research, Stock Buzz) and is one of Africa’s largest, said earnings were mainly hobbled by lower travel demand and a jump in costs.

Nov 6, 2012

Kenya Airways sees grim year on security situation, euro

NAIROBI, Nov 6 (Reuters) – Kenya Airways expects
to recover from a first-half loss but full year profits will
still be less-than a quarter of last year’s, hurt by the euro
zone crisis and insecurity at home, the airline said on Tuesday.

The carrier, which is 26.73 percent owned by Air France-KLM
and is one of Africa’s largest, said earnings were
mainly hobbled by lower travel demand and a jump in costs.

Nov 5, 2012

Burundi economic reform too slow for impoverished citizens

BUJUMBURA, Nov 4 (Reuters) – The central African nation of
Burundi may be winning plaudits for its economic reforms and
relative peace after nearly two decades of civil war, but
shopowners like Niyonzima Alimasi have little to cheer.

“Purchasing power is low,” said Alimasi, 31, who runs a
hardware shop on a crowded street in the capital Bujumbura,
nestled on the shores of Lake Tanganyika.

Nov 4, 2012

Burundi’s economic reform too slow for its impoverished citizens

BUJUMBURA, Nov 4 (Reuters) – The central African nation of
Burundi may be winning plaudits for its economic reforms and
relative peace after nearly two decades of civil war, but
shopowners like Niyonzima Alimasi have little to cheer.

“Purchasing power is low,” said Alimasi, 31, who runs a
hardware shop on a crowded street in the capital Bujumbura,
nestled on the shores of Lake Tanganyika.

Oct 26, 2012

Burundi grows, but still falls short: finance minister

BUJUMBURA (Reuters) – Burundi expects its economy to expand by 5 percent annually over the next three to four years, still below the rate needed to lift it out of poverty, the country’s finance minister said.

The central African nation of eight million people projects this year’s growth at around 4 percent. It relies heavily on external aid to fund state spending with donors expected to provide 60 percent of its 2012 budget.

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.