About two million Kenyans have their money idle in an account at the Central Bank of Kenya (CBK) as unclaimed assets.
The Unclaimed Financial Assets Authority (UFAA) says about 60 companies have so far surrendered Kshs. 3.3 billion. “The money is at the CBK in a trust account. We have so far invested in government securities”, UFAA Chief Executive Officer Ms. Kellen Kariuki said in Nairobi during a media briefing.
Ms. Kariuki said only Kshs.32 million has been claimed to date. The authority is planning an awareness and sensitization campaign to encourage beneficiaries collect their money.
The struggling sugar sector has once again found itself between a rock and a hard place, with very little solutions as socio-political and economic dynamics choke it while pushing the real issues to the sidelines.
The current ping pong between the political class will not help a sector that is now becoming synonymous with slowdown and bickering hence the need for sober resolutions that will help the millions of farmers who depend on this sweetener.
Close to a decade, the government has tried to protect the sector by limiting imports, but it seems this did not do much to turn around the fortunes of the sector as rising competition from regional players and their pricing strategies threaten the existence of local sugar farmers.
The Central Bank of Kenya (CBK) has been in the money markets greater part of this week seeking to mop up Ksh13 billion in excess liquidity.
The CBK uses repurchase and term auction deposits to soak up liquidity, making it costly to hold dollars and in turn giving the shilling support.
Kenya will today sign an agreement with the Global Fund of Ksh33 billion (USD332 million) to fight HIV/AIDS, Tuberculosis (TB) and Malaria.
The National Global Fund Coordinator at the National Treasury Ms. Margaret Onyimbo said the funding support to be signed will be for the next two years under the New Funding Model.
The signing ceremony that will be led by National Treasury Cabinet Secretary Mr. Henry Rotich will be conducted at the Treasury building, Nairobi at 2.30pm.
Ksh25 billion excess liquidity in the market was mopped up yesterday by the Central Bank of Kenya (CBK) in an effort to help stabilize the shilling.
The bank uses term auction deposits and repurchase agreements to absorb liquidity, which makes it costly to hold onto dollars and in turn lends support to the shilling.
The shilling held steady with scarce dollar demand , a day after the bank injected dollars into the market to bolster the local currency as it neared its all-time low.
Kenya Revenue Authority (KRA) has set up an iTax Support Centre in Nakuru town to help taxpayers apply for pin registration, file returns and make enquiries.
Nakuru Deputy Governor Mr. Joseph Ruto said the county is automating tax collection, adding that it has implemented successfully automation of payment for a single business permit.
The Unclaimed Financial Assets Authority (UFAA) said it will audit all financial institutions and state agencies to ascertain the amount of unclaimed assets in their possession.
It said it suspects they could be under declaring the exact amount of unclaimed funds they hold. The Authority’s Chief Executive Officer, Ms. Kellen Kariuki said it is estimated the institutions could be holding up to Kshs.283 billion in unclaimed assets.
“We will do research to establish how much there is. We have collected financial assets amounting to Kshs.3.3 billion so far”, she said during a media briefing in Nairobi.
The Central Bank of Kenya (CBK) has pumped into the market more dollars to prop up the shilling after weakening to hit 106.15/35 on Monday’s close.
The shilling weakened close to its all-time low in early trading yesterday, weighed down by corporate dollar demand and US currency’s strength. At 10.22 am, the shilling traded at 106.60/70 close to the low of about 107 in October 2011; but finally closed at 105.5 in the afternoon against the greenback.
Kenya has introduced Public Private Partnerships (PPPs) to spur the participation of the private sector in infrastructure development in the country.
The Director of Public Private Partnerships (PPPs) in the National Treasury Engineer Stanley Kamau, said the introduction of PPPs projects in Kenya’s infrastructure development is a major milestone for the government in providing services at an accelerated and an affordable rate.
In an interview with the media at the National Treasury, Engineer Kamau said the PPPs infrastructure projects the government has engaged are unique because it is the first time projects have deviated from the traditional procurement process.
Kenya will sell a one year Treasury bond worth Kshs.30 billion this month and its proceeds will go towards funding the government’s budget, the Central Bank of Kenya (CBK) has said.
The CBK said in a statement it will receive bids for the bond between September 11th and 23rd and will auction it on September 24th.
Meanwhile the shilling firmed last week against the dollar demand from energy and telecommunications firms offset by Central Bank’s injection of greenbacks into the market, and tight liquidity.
After showing some stability last week, the Kenya shilling yesterday exchanged at 106 to the dollar even as Central Bank of Kenya (CBK) attempted to mop up excess liquidity of Ksh14 billion to stall the drop.
Last Friday, the shilling exchanged at Ksh105.60/70 to the dollar. Since the year began the shilling has lost nearly 14.8 percent of its value against the US dollar.
Analysts attribute the fall to the strength of the US dollar globally, demand for foreign currency from telecommunications and energy firms, and Kenya’s widening current account deficit.
Kenya will be the first African country to host the sixth Tokyo International Conference on African Development (TICAD) Yokohama Action Plan in Nairobi during the second half of 2016. This will enable Kenya to strategize on the best methods to seek financial and technical support from Japan within the framework of TICAD initiative to implement priority projects in line with the Vision 2030 blue print.
The country will also utilize the forthcoming Kenya/Japan Annual Bilateral Consultations for Economic Cooperation for 2015/2016 financial year to discuss areas of future cooperation and other issues of mutual interest between the two countries.
Kenya’s shilling was firm against the dollar yesterday due to the intervention of the Central Bank of Kenya (CBK) early this week.
At 12:25 pm, commercial banks quoted the shilling at 105.25/45, barely changed from Wednesday’s close of 105.25/35.
The CBK Monday and Tuesday market intervention was timely as substantial dollars sold boosted the shilling as the local currency edged closer to its record low of 106.80, set in October 2011.
The Capital Markets Authority (CMA) has advised county governments to raise cash from the public through sale of bonds to finance major infrastructure projects.
CMA acting Chief Executive Officer Mr. Paul Muthaura said with the commencement of new CMA guidelines next month, devolved governments will be able to issue infrastructure bonds.
Mr. Muthaura said guidelines to issue infrastructure bonds were ready and would soon be published to enable counties to structure asset-backed securities (ABS) to raise money from the capital markets.
Kenya Airways board and the top management future hangs in the balance in a drastic plan meant to return the national airline on the path to profitability.
The government is preparing a “turnaround plan” aimed at making the carrier that has been in the red over the last three years return to profit. National Treasury Cabinet Secretary Mr. Henry Rotich yesterday told a senate committee that the plan was at an advanced stage.
The Insurance Industry is ready to absorb risks emanating from the forecast El Nino rains which is expected from next month.
Insurance Regulatory Authority (IRA) Chief Executive Officer Mr. Sammy Makove said the 49-member industry has adequate covers to compensate for insured losses incase of the El Nino.
He said unlike 1997, when the industry was caught off-guard, it was now well prepared to cushion insured businesses mainly in agriculture, trade, building and construction sectors.
The shilling was little changed against the dollar last week, but was seen under pressure due to demand from importers and a general weakening emerging currencies against the dollar.
At 9:23 am on Friday, commercial banks quoted the shilling at 105.00/105.20 per dollar, barely changed from 104.95/105/15 on Thursday.
The shilling has been edging closer to its all time low of about 107 to the dollar, set in October 2011.
The Kenyan currency, down 16 percent this year, has come under pressure from a broad rally in the dollar, Kenya’s high current account deficit and poor tourism inflows after attacks by militants.
Kenya’s sound macroeconomic management and economic resilience built over the years has enabled the country to maintain strong economic growth and stability.
The Director General of Budget, Fiscal and Economic Affairs in the National Treasury Dr. Geoffrey Mwau, said Kenya’s economic growth prospects continues to remain stable due to the strong foundation of economic transformation.
Kenya has to strive greatly in mobilizing resources to mitigate against the impacts of climate change in the country.
National Treasury Cabinet Secretary Mr. Henry Rotich said such impacts of climate change include droughts and floods which have destroyed human life, property, infrastructure and enhanced spread of diseases.
“Kenya has embarked on preparing a comprehensive and effective policy framework to facilitate the deployment and flow of climate finance in a transparent manner in a bid to overcome the challenge of mobilizing resources to mitigate impacts of climate change,” said Mr. Rotich.
The government has provided Ksh4 billion loan while the African Export-Import Bank has approved $200 million bridging loan to Kenya Airways (KQ) to help the national carrier to service its debts.
National Treasury Cabinet Secretary Mr. Henry Rotich told a senate committee last week in Parliament buildings that the KQ troubles are being audited before far-reaching actions are taken with regard to the Ksh25.74 billion loss incurred by the airline.