The Central Bank of Kenya has placed Dubai Bank under receivership after the lender failed to repay money borrowed from other financial institutions to keep it afloat.
Announcing the move, Central Bank said the action was taken in the interest of the depositors, creditors and members of the public. Kenya Deposit Insurance Corporation (KDIC) was appointed as the receiving manager for a year.
Kenya has become the top regional destination for investors putting money in impact investments that target both social and financial gains, a new study shows.
The report, which looked at regional impact investments made between 1998 and 2004, says Kenya accounted for nearly half of the $9.3 billion (Sh930 billion) invested.
Lower oil prices, higher public and private investment and recovery of the agricultural sector, are expected to boost Kenya’s economic growth in 2015/16 financial year.
National Treasury Cabinet Secretary Mr. Henry Rotich however pointed out that Ministries, Departments and government Agencies (MDAs) should be cautious during the implementation of this year’s budget which he noted was prepared against a background of uneven and sluggish global economic recovery.
Japan’s development cooperation growth portfolio to Kenya from independence to date stands at Ksh469.5 billion.
National Treasury Cabinet Secretary Mr. Henry Rotich said that over the years, the projects that have benefited from the Japanese development assistance include Jomo Kenyatta University of Agriculture and Technology, and Kenya Medical Research Institute which have provided leadership in technology and innovation, and medical research respectively.
The role of Kenya Airways management is under investigation in the sh25.7 billion loss that was recorded recently by the airline.
National Treasury Cabinet Secretary Mr. Henry Rotich said an overhaul of the management was among the options being considered.
“All aspects are being looked into, including doing an audit to determine the role the management played in the collapse of KQ,” Mr. Rotich said.
The National Bank of Kenya, which has in recent months come under intense pressure to explain its financial health, has more than doubled its profit after tax in the first second months of this year.
The lender’s unaudited financial statements show its net profit grew to Sh1.7 billion in the six months to June 2015, up from the Sh776 million it reported in a similar period last year. The results are set to be good news to the bank’s two biggest shareholders, the National Treasury and the National Social Security Fund (NSSF).
Japan has loaned Kenya Sh3.28 billion to support her health sector efforts towards the achievement of the Universal Healthcare Coverage in the country.
Japan International Cooperation Agency (JICA) chief representative to Kenya Mr. Hideo Eguchi, said the concept of human security which is embedded in Kenya’s health sector policy priorities contributed significantly to the country’s ability to win the loan facility which is also in tandem with the guiding principle of Japan’s development cooperation.
The slogan of Kenya Airways (KQ) is “The Pride of Africa”. Therefore KQ is an important entity for this country. In the past, KQ has been an envy of the continent. It carries our national flag and identity globally. With that in mind, the national carrier must be saved from Ksh25.7 billion loss which signals imminent collapse of the airline.
In order to save the “Pride of Africa”, the challenges which contributed to the huge loss must be known. Currently, some challenges have been pointed out. The slump in tourism did affect many sectors of the economy and Kenya Airways was not immune. It is also true that the Ebola outbreak in West Africa affected KQ business.
National Treasury seeks to understand what happened at Kenya Airways before coming up with bailout plan
Kenya Airways will be scrutinized by the National Treasury before any bailout plan is put in place, Cabinet Secretary Mr. Henry Rotich has said.
In an interview with the press, Mr. Rotich said the National Treasury would like to find out how the national carrier incurred such a huge loss announced last week before considering a bailout.
Cabinet Secretary, National Treasury Henry Rotich (R) and Hideo Eguchi, Chief Representative Japan International Corporation Agency (JICA) sign loan agreement in which Japan will loan Kenya Sh 2.9 billion towards the Health Sector Policy Loan for attainment of Universal Health Coverage (UHC) today, August 17, 2015.The support focuses on such areas as Free Maternity Services, Health Sector fund Result Financing, Health Insurance Subsidy Program and Capacity Development for related activities.
The Kenya Airways is indeed the “Pride of Africa” and should not be allowed to sink. It should therefore continue flying across continental airspaces such as Africa, Europe, Asia, America, Australia and New Zealand despite the operational challenges it is facing today.
The huge loss notwithstanding, Kenya Airways definitely projects positively Kenya’s image globally. The bailout is therefore a necessity and this has received a big boost from the China Southern Airlines through a code-sharing agreement which includes weekly flights. Air connection to China from Kenya was therefore enhanced on Wednesday with the landing of the China Southern Airlines at the Jomo Kenyatta International Airport (JKIA).
Huge imports of spare parts by Kenya Airways (KQ) and equipment for the Standard Gauge Railway project are some of the key factors that led to the depreciation of the shilling especially in June 2015.
Central Bank of Kenya Governor, Dr. Patrick Njoroge also said the decline of number of tourists from Kenya’s traditional tourist markets and a major drop in receipts from agricultural exports-tea, coffee and horticulture, were other external and domestic factors that contributed to the slide of the local currency against the US dollar.
National carrier Kenya Airways (KQ) is technically sound despite the financial crisis it faces according to the Kenya Civil Aviation Authority.
The Authority’s Director General Mr. Gilbert Kibe said that the airline is undergoing a
five-phase recertification process that started way back in 2008, to ensure it complies with the updated civil aviation regulations before its license of operation is renewed.
The shilling has lost ground as banks that had sold dollars expecting the Central Bank of Kenya (CBK) would raise its benchmark lending rate covered short positions when the bank left the rate unchanged.
The bank’s Monetary Policy Committee (MPC) surprised the markets by holding the rates at 11.50 percent late on Wednesday, after trading on the shilling had closed, saying it did so to allow recent tightening to fully take effect.
Kenya’s cost of living index fell to 6.62 percent in July down from 7.03 percent in June, 2015 due to drop in the price of foodstuffs which consumes the largest portion of household budgets including maize flour, cabbages, sukuma wiki and potatoes as well as cooking gas.
According to figures from the Kenya National Bureau of Statistics, the food and non-alcoholic drinks index decreased by 0.6 percent between June and July as observed from decreases in prices of various food items.
In all the expenditures and revenues, the National Treasury followed expert advice from accountants and no money had been lost, only that the documentation was the problem.
While answering questions from the Parliamentary Public Accounts Committee (PAC) over an unaccounted Sh67 billion, as recorded in the Auditor General’s Report, Dr. Kamau Thugge said, “we had meetings and have even written to the Controller of Budget to furnish evidence and explanation on the matters PAC have raised”.
The signing of a code-sharing agreement between Kenya Airways (KQ) and the China Southern Airlines yesterday will help calm turbulence for KQ following a Sh25.7 billion loss which has been attributed to poor management and competition from other airlines.
The move could help rejuvenate KQ’s dwindling fortunes at a time when there is a slump in the tourism sector, coupled with a financial crunch that threatens to cripple the national carrier.
National Bank has opened a premium banking branch at Nairobi’s upmarket area, Yaya Centre that houses the region’s first Chinese Renminbi (Yuan) exchange Centre.
The exchange Centre is aimed at facilitating trade between Kenya and china. The branch provides customers with meeting space, free internet, children play-area and a choice between English, Swahili or Chinese speaking personal bankers.
Most of the 43 licensed commercial banks in the country list the tourism sector as the most insecure this quarter, Central Bank of Kenya (CBK) quarterly credit report shows.
CBK said the sector that has struggled since record Sh103 billion earnings in 2011, is the only out of 11 that has been singled out as likely to default on loans.
In the report posted on its Website, CBK however said some banks are also encouraged to lend because of the July-December 2015 tourism high season.
The Monetary Policy Committee (MPC) has retained the Central Bank Rate at 11.5 percent. Central Bank Governor Dr. Patrick Njoroge, said they decided to keep the lending rate unchanged because the inflation rate had reduced from 7.03 in June to 6.6 percent in July.
Dr. Njoroge added that the lending rate was also retained because the measures taken in the previous meetings were yet to be fully transmitted to the economy.