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).

KRA Times TowerKenya 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.

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.

kenya airwaysNational 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.

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.

KQThe 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.

world bankKenya 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.

cbkThe 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.

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.

Kenya Airways takeoffThe 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.

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.

cbkThe 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.

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.

exchangenotes1Kenya 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

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.

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.