News

Kenya’s shilling was steady and traders said the currency will be boosted by dollar inflows from offshore investors attracted by the high interest rates on the government Treasury bills.
At 10.23 a.m. last Friday, the 9th of October 2015, commercial banks quoted the shilling at 103.05/15 to the dollar, compared to Thursday’s close at 103.00/10.
A senior trader at one commercial bank said: “It’s very stable, though the high government security yields are attracting (dollar) inflows, but demand remains subdued for now”.

The 2010 constitution requires public participation in key decision-making processes. However, progress towards this goal has been slow. Participation is costly and difficult to manage, especially in a country that is large and ethnically diverse.
Recently, the Kenyan government organized a conference on County Own Source Revenue Enhancement which was held at Great Rift Valley Lodge and Golf Resort, Naivasha.

Treasury, October 2, 2015: By Joseph Kipkoech
Financial services and utility companies still holding onto unclaimed assets face penalties, the Unclaimed Financial Assets Authority (UFAA) has warned.
Bankers, insurers, brokerage firms, pension funds and utilities including mobile money service providers are under Unclaimed Financial Assets Act 2011 required to surrender such dormant assets by November every year.
The Chief Executive Officer Ms Kellen Kariuki spoke during the launch of a month-long public awareness campaign in partnership with Kenya Bankers Association.

Uchumi Supermarkets has closed operations in Uganda and Tanzania to stem further losses.

Uchumi Chief Executive Officer (CEO) Dr Julius Kipng’etich, said while the outlets make up 4.75 per cent of the retail chains operations, they account for 25 per cent of operating costs.
“The two subsidiaries have not made any profits over the last five years which means they have been draining parent operations,” said Dr Kipng’etich.

Treasury, October 6, 2015: By Joseph Kipkoech
The shilling has strengthened with support by rising yields on government securities and dollar sales by tea agencies paying to farmers.
At 8.42 am on Friday last week, banks quoted the shilling at 104.15/25 to the dollar, compared with Thursday’s close of 104.40/50.
Traders say a shortage of shilling liquidity has supported the shilling and kept overnight lending rate high at around 27 per cent this week up from 13 per cent in early September.

cbkThe Central Bank of Kenya (CBK), will get more powers to deal with rogue financial institutions and enhance its supervisory role under new proposed legislation.
National Treasury Cabinet Secretary, Mr. Henry Rotich, said the proposed law approved by the Cabinet two weeks ago, will enable the regulator play a more proactive role.

The government has released Sh11.2 billion for the free primary and subsidised secondary education programmes.
Sh3.2 billion of the money released yesterday would go towards free primary education while Sh8 billion would be spent on subsidised secondary education.

Treasury, October 6, 2015: By Joseph Kipkoech
The Central Bank of Kenya (CBK) seeks to weed out dealers manipulating markets in an effort to stem volatility of the shilling.
The CBK governor, Dr Patrick Njoroge, said financial institutions ought to adhere to rules on forex trading and increase oversight on dealers to eliminate market indiscipline.

Cabinet Secretaries and governors can now enjoy up to Kshs.40 million mortgage loans from a Kshs.1 billion revolving fund that will also serve top state officers.
Other senior state officers will be allowed to borrow between Kshs.25 million and Kshs.35 million depending on one’s rank.
National Treasury Cabinet Secretary Mr. Henry Rotich said the scheme became effective last month. The top officers allowed to borrow up to Kshs.40 million include governors, Cabinet Secretaries, the Chief of the Kenya Defence Forces and the Secretary to the Cabinet.

DSC 8292According to the National Treasury, Integrated Financial Management Information System (IFMIS) is an automated system used for public financial management that interlinks planning, budgeting, expenditure management and control, accounting, procurement, audit and reporting. E-procurement is a component of IFMIS whose usage is submission and evaluation of procurement applications.

Treasury, October 6, 2015: By Joseph Kipkoech
The Central Bank of Kenya (CBK) has directed commercial banks to streamline the supply of coins as it warned retail outlets against giving customers alternative goods as change instead of coins.
The bank, which regulates issuing of currency, said the practice of offering shoppers airtime, matchboxes and sweets for low-value change has become a concern.
Retailers denying customers the possibility of obtaining their change in currency or opportunity to agree on any other form of settlement were violating the law, the CBK said last week on Friday.

Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge has asked lenders to shore up their core capital to enable them grab a share of the lucrative infrastructure financing business.
Boosting the respective capital bases would the lenders’ ability to stave off competition from foreign finance providers.  “Given the considerable financial outlays involved in infrastructure projects, commercial banks would need to enhance their capital base to participate in Public Private Partnerships while remaining compliant with regulatory requirements”, Dr. Njoroge said.

In Kenya, the constitution dictates that the public must be part of the budget-making process, and this is therefore promoting public participation in the national exercise.
With this year’s national Budget standing at over 2.2 trillion, greater oversight is required by Parliament to ensure taxpayers get value for every cent and citizens’ priorities are well captured in the budget process.
By doing so, the public will receive sufficient budget information to enable them to understand and influence the usage of taxes.  The substantial budget information will also enable the citizens to engage effectively in the budget process.

Treasury, October 6, 2015: By Joseph Kipkoech
The Capital Markets Authority (CMA) has been feted as the most innovative capital markets regulator in Africa by New York-based Africa Investor.
The Pan-African awards, launched in 2007, recognized best performing stock exchanges, listed companies, investment banks, research teams, regulators, socially responsible companies and sovereign wealth and pension fund investors.

Lower growth rates across East Africa and turmoil in South Sudan will have an adverse effect on performance of Kenyan banks, the International Monetary Fund (IMF) has said.
The Fund, which has revised Kenya’s economic growth from 6.9 per cent to 6.5 per cent, says cross-border activities have exposed local lenders to economic downturn across the region.
 “In the event of economic distress in Eat Africa, in particular South Sudan, the IMF noted that cross-border activities of Kenyan banks could be adversely affected”, said a statement by the Fund.

Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge, has said ground has been gained in stabilizing the Kenya shilling, prices and interest rates.

This, he said, shows that measures by the Monetary Policy Committee (MPC) are producing the desired effect in reducing market indiscipline in the financial sector, a major cause of market instability.

The 2010 constitution requires public participation in key decision-making processes. However, progress towards this goal has been slow. Participation is costly and difficult to manage, especially in a country that is large and ethnically diverse.
Recently, the Kenyan government organized a conference on County Own Source Revenue Enhancement which was held at Great Rift Valley Lodge and Golf Resort, Naivasha.

The Central Bank of Kenya (CBK) will release this week the details of the planned release of the new currency. CBK Governor Dr. Patrick Njoroge said on the sidelines of the 4th Kenya Bankers Association Annual Banking Research Conference without divulging further details.
The National Treasury Cabinet Secretary Mr. Henry Rotich had said that the launch of the new currency had been set in motion and was nearing completion.

Treasury, October 7, 2015: By Joseph Kipkoech
State agencies and county governments have been warned against manual procurement as it contravenes the law.
Financial Management Information Service (FMIS) Director Mr Jerome Ochieng’ said deals outside the provisions of the digital platform were against the constitution and the Public Finance Management Act.
Mr Ochieng’, who was speaking to procurement officers from all state entities at a refresher workshop in Nairobi, urged them to adhere to the law.

Treasury, October 4, 2015: By Joseph Kipkoech
The National Treasury has launched a new initiative to provide an avenue for investing in Treasury Bonds conveniently through mobile phones. This is a well-timed initiative that will enable Kenyans to take part not only in financing ongoing infrastructure projects but also build savings for their future.
The M-Akiba Infrastructure Bond was launched in recognition that the Capital Markets sector is critical to achieving the Vision 2030 target of 10 per cent annual average economic growth and requires that the sector stimulates significant increase in investments and savings through mobilizing both domestic and international resources.