A new proposed formula released by the Commission on Revenue Allocation (CRA) for sharing of revenue among the 47 devolved units relies less on poverty levels in the sharing of Billions from the National Treasury among the counties.
The national government will raise share of allocations to the devolved units that increase their own internal revenue collection during the preceding financial year.
The Central Bank of Kenya (CBK) offered Kshs.16 billion into the money markets using reverse repurchase agreements.
Traders yesterday said the reverse repo offerings help to ensure that smaller banks have access to shilling liquidity which the CBK has said tends to be skewed towards larger lenders in the Kenyan market.
The Government will not reverse the directive to use online procurement although some counties oppose it for fear of being held accountable through its transparency.
National Treasury Cabinet Secretary Mr. Henry Rotich who appeared before the Senate Committee on Finance admitted, however, that the system faces problems.
The Resources Mobilization Department in the National Treasury has served the country very well over the years and continues to do so.
The department is under the Directorate of Public Debt Management Office which is instrumental in seeing that the resource mobilization function is performed by the Ministry for the benefit of Kenyans.
Global economies are built by Small and Medium Enterprises (SMEs). They provide the entrepreneurial vibrancy and vitality which drives economic activity across different industries.
The SMEs are the undisputed foundation of economic diversification and expansion, contributing immensely towards a positive socio-economic impact within the country. Their importance in Kenya is reflected in the Economic Survey 2014 which showed that 80 per cent of the 800,000 jobs created were in the informal sector that is dominated by SMEs.
The Kenya shilling lost ground against the dollar on Friday last week, hurt by loosening liquidity in the money markets.
At 11.00 a.m. commercial banks quoted the shilling at 102.25/102.35 to the dollar, slightly weaker on Thursday’s close of 102.15/25.
One Nairobi-based trader said the shilling slipped due to loosening liquidity following heavily subscribed government debt auctions where most of the bids were rejected.
Average interest on short-term interest rates continues to fall piling pressure on banks to lower cost of borrowing.
Yield on government papers fell for the third straight week as it continued to cut appetite for domestic borrowing, which pushed the rates to record highs on October 22.
Cabinet Secretary, Henry Rotich delivers keynote address today Wednesday, November 18, 2015 when he officially opening a three-day public hearings of 2016/17-2018/19 Medium Term Expenditure Framework (MTEF) Budget – Public Sector Hearings at the Kenya Institute Curriculum Development, Nairobi. The main objective of the forum is to receive feedback from the public and stakeholders stakeholders to validate the sector budget proposals for the next MTEF period.
Kenya’s shilling held steady against the US dollar with traders expecting the currency to trade in a tight range throughout the week.
At 9.45 a.m. yesterday, commercial banks quoted the shilling at 101.95/102/05.
“Nothing has happened on Tuesday morning. I don’t see anything on the horizon today that will make us change direction,” said one trader at a Nairobi – based commercial bank.
Bank of Africa Kenya has unveiled new strategies to increase market share, to be implemented in 2016 – 2018 financial years.
The bank has opened three container branches, called BOA Direct, located at Total Petrol stations on Thika Road, Jogoo Road and Industrial Area in Nairobi.
Average interest rates on the benchmark 91-day Treasury Bills have fallen to single-digits for the first time since early July, helped by increased inflows from foreign investors chasing high returns.
At the weekly auction on Thursday last week, yield on the three-month by the government to borrow cash to fund the budget fell to 9.65 per cent – a 4.11 per cent drop from previous week’s 13.76 per cent.
The Central Bank of Kenya (CBK) sought to inject Kshs.16 billion into the markets through a reverse repurchasing programme.
The bank’s offer yesterday to inject liquidity into the market goes contrary into its recent tightening stance.
Traders have said the CBK may be seeking to help smaller lenders, who have found it difficult to borrow from larger counter parts after seizure of a second-tier bank last month.
The Central Bank of Kenya (CBK) has indefinitely suspended licensing of new commercial banks, paving way for mergers and acquisitions.
The decision comes in the wake of massive fraud on customers’ savings at Imperial and Dubai Banks, which apparently escaped its supervisory wing.
The Central Bank of Kenya (CBK) said it was offering Kshs.8 billion into money markets using reverse repurchase agreements.
Traders on Friday last week have said the repo offerings help ensure smaller banks have access to shilling liquidity, which the CBK has said tends to be skewed towards larger lenders in the Kenya market.
Treasury, November 2, 2015: By Joseph Kipkoech
Imperial Bank could be re-opened next month but only after the owners meet a raft of conditions set by the Central Bank of Kenya (CBK), including fresh capital injection after new revelations of massive plunder by top managers.
The government has banned non-essential foreign travel by public officers and cut spending on breakfast meetings, office furniture, printing and advertising to make a saving.
The trips blacklisted include benchmarking and study tours by national and county government officials.
National Treasury Cabinet Secretary Mr. Henry Rotich has accused some counties of not fully utilizing funds allocated to them.
At the same time, Mr. Rotich has defended the decision to delay the disbursement of funds to counties with low absorption of funds.
A steady shilling prompted the Monetary Policy Committee to retain the Central Bank Rate (CBR) at 11.5 per cent.
Other factors that informed the decision were decline in Treasury bill and inter-bank lending rates, and inflation hovering within the targeted range.
Tightening credit conditions are driving international banks out of trade financing slowdown of world economies, which has constricted global trade by four per cent.
Reminiscent of the 1990s when various banks closed shop in a period now known as the lost decade of Africa, the financial sector is optimistic that this time the continent is ready to cover itself, given growth in the financial sector.