The Kenya shilling continued to weaken due to importer dollar demand from the energy sector and Central Bank of Kenya (CBK) limitations in preventing the local unit from weakening.
On Tuesday, Commercial banks quoted the shilling at 102.75/85 to the dollar, compared with Monday’s close of trading at 101.75/85.
Kenya has received Ksh488.82 billion financial support from China since the beginning of bilateral relations between the two countries in 1964.
National Treasury Cabinet Secretary Mr. Henry Rotich said some of the projects that have benefited from the Chinese development assistance include Moi Sports Complex Kasarani, Moi
Kenya’s Shilling weakened as companies bought dollars taking advantage of a strengthening in the local currency on Tuesday after the Central Bank sold dollars.
At the 4:30 pm close of trade yesterday commercial banks quoted the shilling at 101.90/102.00 to the dollar, down from Tuesday’s 101.45/65.
The shilling gained after the bank sold dollars on Monday and Tuesday to counter a fall in the shilling to a new three-and-a half year low of 103.85/95 to the dollar.oil companies bought most of the dollars to finance their operations in the energy sector.
Diaspora remittances hit Sh76.93 billion in the first half of 2015, official data released by the Central Bank of Kenya (CBK) shows.
This is an increase of 9.2 percent compared to Sh70.4 billion recorded in the same period last year.
Last month, Kenyans living abroad sent home Sh13.87 billion, a jump of 17.1 percent compared to Sh12.08 billion in June 2014.
Kenya’s exports to Netherlands last year were worth Ksh40.6 billion against imports worth Ksh18.8n billion, thus representing a trade surplus of Ksh21.8 billion.
National Treasury Cabinet Secretary Mr. Henry Rotich said Kenya’s major exports to Netherlands include horticultural products while her major imports from Netherlands include petroleum oils.
Mr. Rotich added that inland investments from Netherlands in Kenya are in the air transport services, agriculture and horticulture.
Twenty one commercial banks have so far met the sh5 billion Core capital requirement issued by the Central Bank of Kenya, National Treasury Cabinet Secretary Mr. Henry Rotich has said. Mr. Rotich’s report was presented yesterday to the Senate by Finance Committee Chairman Billow Kerrow. Senators demanded that CBK Governor Dr. Patrick Njoroge appear before them next Thursday to shed light on the reason behind the up scaling of the minimum capital requirement for commercial banks.
Senators want to know why Mr. Rotich increased the share capital to sh5 billion without consultations. According to the Banking Act, all banks were by December 31, 2012 required to raise their minimum core capital to sh1 billion.
Kenya Revenue Authority (KRA) collected a record Ksh1.001 trillion in taxes last financial year which ended June 30, 2015.
The higher revenue collection was 3.86 percent more than 2013/2014 financial year’s Ksh963.8 billion, official data shows.
National Treasury Cabinet Secretary Mr. Henry Rotich says in the statement of Actual Revenues and Net Exchequer Issues for the period to June 30 published in the Kenya Gazette last Friday.
Comment: Turning Kenya into a 24-hour economy will boost development
The benefits of a 24-hour economy are enormous. It helps in job creation, increases productivity by allowing us to utilize the available space, manpower and technology.
A 24-hour economy will also ensure growth of other amenities that are needed for its success such as water, electricity and transport infrastructure.
The lighting up of Nairobi and installation of surveillance is part of the plan to encourage the 24-hour economy. In line with Vision 2030, it is the Government’s wish that Nairobi turns into the region’s premier 24-hour economic hub.
Women, youth and persons with disability can now apply easily for Government contracts following successful training of more than 4,000 suppliers by the National Treasury in all the 47 counties. This is expected to help them take advantage of regulations requiring government agencies to set aside 30 percent of all contracts for business owned and run by the youth, women and persons with disabilities.
Kenya has received sh488.82 billion financial support from China since 1964 when bilateral relations between the two countries begun.
National Treasury Cabinet Secretary Mr. Henry Rotich said some of the projects that have benefited from the Chinese development assistance include Moi Sports Complex Kasarani, Moi Teaching and Referral Hospital, Eldoret, Thika Road Development (Lot 3), Nairobi Eastern and Northern Bypass Project and Mama Lucy Kibaki Hospital, amongst others.
National Treasury Cabinet Secretary Henry Rotich (Right) and World Bank Country Director, MS. Diarietou exchange signed project credit agreement between the Government of Kenya and the World Bank of Kshs 50 billion (US Dollars 500 milllion) for financing the Kenya – Eastern Africa Regional Transport, Trade and Development Facilitation Project (EARTTDFP) at the National Treasury building today, Monday, July 20, 2015.
Rotich said the signed amount will be channeled to rehabilitate 298 km road stretch between Nakodok to Loichangamatak with the Government developming the 40km section that lies between Loichangamatak and Lokichar (Turkana County) at the cost of Sh 17 billion. The road stretches is part of 601 km road between Lesseru in Eldoret and Nakodok at the Kenya and South Sudan border which will be rehabilitated at the total cost of about of Sh 107 billion (US Dollars 1.07 billion).
Kenya’s 2014 foreign direct investment almost doubled, growing by 95.84 percent to Ksh99.63 billion from Ksh50.87 billion in 2013.
According to latest figures from the United Nations Conference on Trade and Development, the country ranked 136 out of 189 countries in World Bank’s Ease of Doing Business report for the period to June 2014.
Kenya and the World Bank have signed a financing agreement worth Ksh50 billion credit to finance the rehabilitation of 283 Km Loichangamatak-Nakodok road in Turkana County.
The Ksh50 billion loan will be used to upgrade critical road infrastructure and replacement of bridges and facilitate regional transport, trade and development by increasing the efficiency of the corridor.
While signing the agreement with the World Bank Country Director Ms. Diarietou Gaye at Treasury building, Nairobi, National Treasury Cabinet Secretary Mr. Henry Rotich said the Government will therefore develop 40 Km section that lies between Loichangamatak and Lokichar in the same county at a cost of Ksh17.6 billion.
By Nyarukira Kabui 14th May 2015
Even after travel advisories on tourists visiting Kenya were issued by a few missions in Nairobi, the future of the tourism industry still looks bright. Nationalities from various countries who recently visited Kenya gave the country ‘a clean bill of health’ on safety of tourists.
After touring the country, some Foreign Nationals commended Kenya’s safety highly rating the country’s security measures. They wondered why travel advisories were still in place. They urged Tourists Worldwide to visit Kenya and explore its vast Tourism Industry.
Kenyans working abroad sent home Ksh11 billion last month, an amount which can make a huge impact in the economy.
The diaspora community at a conference urged the government to set up fund to shield them from foreign currency losses incurred when sending money to increase the inflows which have been growing in the recent years.
The National Treasury is planning to set up resource counters at Huduma Centres to help companies having trouble applying for state tenders online.
Acting Director for Financial Management Information Service (FMIS) at the National Treasury, Mr. Jerome Ochieng’, said the move will help small businesses without ICT infrastructure or skill-sets to participate in public contracts.
Treasury, July 20, 2015; By Joseph Kipkoech
The World Bank Group is committed to financing the reconstruction of part of the Kenyan section of the 1,000 Km Eldoret-Juba development corridor under the East African Transport, Trade and Development Facilitation Project.
World Bank Country Director for Kenya Ms. Diarietou Gaye said the new project being supported by the World Bank Group with a credit of Ksh50 billion will enable Kenya to upgrade the 60 Km transport and trade corridor to the north-west through Trans-Nzoia, West Pokot and Turkana counties.
The World Bank has lauded Kenya for strengthening public participation to boost service delivery in the public service.
A senior development specialist at the Bretton Woods institution, Mr. Christopher Finch, said public participation stands to accelerate growth in national and county governments, especially in previously neglected areas.
Kenya’s Central Bank has said banks should not exceed their set foreign exchange limits at any time during the trading day.
Commercial banks are limited to an exposure of not more than 10 percent of their core capital.
“The intra-day foreign exchange limits should not exceed the 10 percent overall limit at any time during the day”, the bank said in a circular dated July 21.
The Kenyan shilling is down about 12 percent this year after the dollar firmed and imports surged, while tourism slumped after militants’ attacks.
Treasury, July 20, 2015; By Joseph Kipkoech
Kenya and the World Bank have signed today a financing agreement worth Ksh50 billion credit to support the Eastern Africa Regional Transport, Trade and Development Facilitation Project.
While signing the agreement with the World Bank Country Director Ms. Diarietou Gaye at Treasury building, Nairobi, National Treasury Cabinet Secretary Mr. Henry Rotich, said the funds will be channeled for rehabilitation of 283 Km road stretch between Nakodok to Loichangamatak in Turkana County.