In summary…
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Treasury has launched the second phase of M-Akiba bond valued at Shs 1 billion. Kenyans will be able to buy the bond through Mpesa, Airtel money of via PesaLink. The inclusion of PesaLink option in the second phase raises the maximum amount that investors can invest at Kshs 1 million per day.
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Commercial banks are lending to private sector at the lowest pace in 10 years. Banks insist last year September capping of interest rates is to blame for the credit squeeze but CBK data shows that the slowdown in credit expansion began a couple of months before the capping.
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Tourist arrivals grew by 10.6% this FY bolstered by yielding markets such as the US, the UK, Germany, India and China. KTB attributed the growth to the government’s tourism recovery campaigns locally and international markets.
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Some 450 Chinese companies are displaying their wares scouting for deals at the 3rd China Trade Week which kicked off at KICC on Thursday. The exhibition is looking to connect local and regional sourcing and purchasing professionals. Building materials, energy products, auto parts, textile, machinery and electronics are on display. (Update: exhibition ended jana)
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The looming shift to a new system of education has changed the maturity dates of education insurance policies bought by many Kenyan parents for their children under the current 8-4-4, throwing them back to the drawing board. The new 2-6-6-3 curriculum is due for rollout beginning 2018. The Insurance Regulatory Authority (IRA), the industry regulator, said there is no possibility of aligning the policies with the new education system, meaning parents will have to dig deeper into their pockets to keep their children in school.
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The fate of troubled retail chain Uchumi supermarkets hangs in the balance after the government suspended the disbursement of Kshs 1.3 billlion loan pending audit of its expenditure. The turn of events has further crippled the company’s local operations and prolonged the financial pain of suppliers in Uganda and Tanzania. Uchumi planned to use Kshs 600 million to pay creditors in the two countries where it closed shop.
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Nyeri county spent only Shs 650,000 on development in six months to December, a lower amount compared to the monthly salary of the governor. Controller of budget says Nyeri county had the lowest absorption rate of 0.04% of money allocated towards development among the 47 counties. Nairobi and Nyandarua counties spent 6.9% and 2.9% respectively of the project’s budgets. This is the second time Nyeri has been ranked last in spending money set aside for development.
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Airlines oppose higher payouts for travel hitches- The draft Civil Aviation (Consumer Protection) Regulations 2017 published a month ago by KCAA require airlines to pay passengers up to Shs 30,000 each- in addition to ticket price refund- for delays and flight cancellations.
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Kenya Railways has postponed the launch of Madaraka Express inter-county train services. KR Managing Director said the plans for the launch were delayed by the late arrival of some of the operator’s key staff.
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The Tanzanian government has expressed concern over Nairobi’s refusal to allow Tanzanian exporters to transport cooking gas to Kenya through the Kenya- Tanzania borders. The decision by Kenya’s Energy ministry raise the possibility of a shortage of cooking gas and a surge in prices of the commodity.
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Telecommunications firm Airtel Kenya lost a massive 5 million mobile money subscribers in just 3 months to March 2017, latest figures form Communications Authority of Kenya says.
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Troubled retail chain Nakumatt has shut down three of its outlets in Uganda. The cash strapped retailer shut stores at Acacia Mall in Kololo, Village Mall in Bugolobi and at Victoria Mall in Entebbe. In April, Nakumatt shut its Katwe branch after it accumulated rent arrears running into millions of shillings.
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Still on Nakumatt, the MD says that the salaries for its employees for the month of June 2017 will be paid 30% in the first week of July, 30% in the second week of July and 40% in the third week of July.
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Milk traders operating vending machines will be required to sell only pasteurised (heated) milk under the new Dairy Industry Regulations 2017 which will also see the shelf life of dispensed milk limited to a day. The measures are aimed at protecting consumers amid rising number of milk ATMs. The regulations also require the machines to be licenced and approved by the regulator while all operators will have to undergo medical examination.
Have a fruitful week.
