Duncan's Feed
Jun 17, 2014

President says Kenyan politics not Islamists behind attacks

NAIROBI Kenya (Reuters) – Kenya’s president shifted blame to domestic rivals on Tuesday for two attacks that killed 65 people on the coast and he dismissed claims of responsibility by Somali Islamist militants, which Nairobi usually fingers for such assaults. Somalia’s al Shabaab militant group has said its gunmen carried out the attacks on the town of Mpeketoni on Sunday night and on a nearby village early on Tuesday morning.

In comments that could further stoke political tensions in a country where allegiances generally run along ethnic lines, President Uhuru Kenyatta instead pointed the finger at rivals he described as “hate-mongers”, though he did not name anybody.

Jun 17, 2014

Kenya secures bids for debut Eurobond worth $8.8 bln-source

NAIROBI, June 17 (Reuters) – Kenya secured bids worth $8.8
billion for its debut Eurobond and will accept $2 billion, a
senior Kenyan official said on Tuesday, saying the level of bids
was a record for Africa.

Bankers had said the final level of demand was nearer $8
billion, with the 10-year dollar denominated bond attracting
$5.5 billion and the five-year bond receiving $2.5 billion.

Jun 12, 2014

Kenya sees fiscal deficit dipping in 2014/15, plans infrastructure boost

NAIROBI, June 12 (Reuters) – Kenya expects its fiscal
deficit to fall slightly to about 7.4 percent of gross domestic
product for the 2014/15 financial year, figures from the finance
minister’s budget speech showed on Thursday.

The government has previously forecast a deficit for 2013/14
of 7.9 percent for the east African nation, which aims to raise
between $1.5 billion and $2 billion with a debut Eurobond it is
now marketing.

Jun 10, 2014

Kenya’s Centum to pay no dividend for another 5 years

NAIROBI, June 10 (Reuters) – Kenya’s Centum Investment
will withhold dividends for another five years,
instead using its earnings to invest in real estate and consumer
goods projects in the region, the firm said on Tuesday.

The investment company, which posted a 24 percent rise in
pretax profit in the year to March, said healthcare, education
and financial services offered good opportunities in east
African economies.

May 23, 2014

African spending spree faces punishment by markets

KIGALI, May 23 (Reuters) – African economies are securing
new funds through resource finds or dollar bonds but many
governments face questions over how they use the money and risk
being punished by international capital markets.

The dash to build infrastructure, and pressure from citizens
for swift rewards from oil and gas discoveries, have pushed some
governments to loosen policy. That has led to ballooning current
account deficits, rising debt and fiscal shortfalls that
threaten to take the shine off otherwise positive growth
stories.

May 21, 2014

Rwanda to allow derivatives trading, offer more incentives for foreign firms soon

KIGALI, May 21 (Reuters) – Rwanda’s finance minister said
the country will soon allow derivatives trading on its stock
exchange and a new investment code, which could offer tax breaks
for foreign investors, has been sent to parliament.

The tiny African state has ambitions to become a regional
financial hub and wants to develop its capital markets and
attract fund management and technology firms, although its
three-year-old stock exchange has just five listings so far.

May 19, 2014

Economic growth in Africa to rise, average 4.8 pct this year -AfDB

KIGALI, May 19 (Reuters) – Growth in African economies is
set to accelerate to 4.8 percent on average this year while
financial flows into the continent will top $200 billion, or
quadruple levels seen in 2000, the African Development Bank said
on Monday.

At the start of its annual meeting in the Rwandan capital
Kigali, the bank had a positive message on the continent’s
economic growth outlook, but it tempered it with warnings on
insecurity in parts of the continent and the need to ensure jobs
were being created to stave off the risk of social discontent.

May 19, 2014

Tanzania to adopt rates-setting in four years – cenbank chief

NAIROBI, May 19 (Reuters) – Tanzania’s central bank plans to
start using interest rates regularly to set monetary policy in
the next four years, giving itself time to ensure a smooth
transition from the present system of influencing growth and
inflation through other financial tools, its governor said.

The east African nation, which has the second largest
economy in the region, uses a range of instruments like foreign
exchange interventions, rather than interest rates, to implement
its monetary policy.

May 16, 2014

Kenya’s Safaricom could get extra spectrum in government deal

NAIROBI, May 16 (Reuters) – Safaricom, Kenya’s
largest telecoms operator, could gain vital additional spectrum
to help improve its services as a spin-off benefit from a
multi-million dollar government contract to build a security and
surveillance system, its chief executive said.

The firm, which is 40 percent owned by Britain’s Vodafone
, needs additional spectrum to improve the quality of its
network and roll out fourth-generation (4G) broadband internet
services, also known as LTE.

May 15, 2014

Kenya extends syndicated loan, giving it time to resolve Eurobond delay

NAIROBI, May 15 (Reuters) – Kenya has won a three-month
extension on a $600 million syndicated loan, a senior Treasury
official said on Thursday, giving it time to continue
discussions on its first ever dollar bond which has been
delayed.

The east African nation took out the two-year loan at an
interest rate of 7 percent in 2012 to fund development projects
and had intended to use some of the proceeds of the planned
Eurobond, which could be worth up to $2 billion, to pay it off.