Category: East Africa
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Kenya:IMF says rates capping could erode Central Bank autonomy
Control of interest rates may compromise the independence of the Central Bank of Kenya (CBK) since it will set the base rate with consideration of public or political interests, the International Monetary Fund (IMF) has said. The multilateral lender said it feared the CBK’s decisions on monetary policy have been captured by politics through the…
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Kenya:Equity shakes market with mobile phone loans rate cut
Equity Bank yesterday pulled down interest rates charged on mobile phone-based loans, breaking ranks with rival Kenya Commercial Bank (KCB) and Commercial Bank of Africa (CBA), as it moved to comply with the new law capping the price of loans. Equity Bank chief executive James Mwangi said customers borrowing through the lender’s Eazzy loans (its…
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Tanzania on track to hit 7.2 pct growth in 2016: central bank
Tanzania’s economy is on track to expand by 7.2 percent in 2016, up from 7 percent in 2015, boosted by construction, an anti-corruption drive and better management of public resources, the central bank governor said on Wednesday. President John Magufuli, elected last year, has launched a campaign against corruption and government waste, and promised to…
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Kenya:US fast food chain Burger King to open Nairobi outlet
American fast food chain Burger King is set to open a Nairobi outlet at The Hub Mall in Karen. The firm is making final touches on the store. Burger King’s arrival in the Kenyan market comes more than three years after opening its first Africa joint in South Africa in 2013. The chain also has…
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Kenya:Imperial Bank auditor paid Sh1.5bn
The Kenya Deposit Insurance Corporation (KDIC) management has by-passed its board and paid Sh1.5 billion to FTI Consulting, the American firm that was contracted to conduct a forensic audit at collapsed Imperial Bank, it has emerged. The payment, which has been made using the collapsed bank’s funds, is not only illegal but also raises questions…
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Treasury gets an upper hand in fight with banks over cost of loans
The Central Bank of Kenya yesterday identified the Central Bank Rate (CBR) as the tool that commercial banks must use in their pricing of loans, effectively shielding the government’s rising appetite for local borrowing from determining the cost of credit in the new dispensation of interest rate controls. CBK Governor Patrick Njoroge confounded industry players…
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Kenya:IRA slaps insurers with new rules to lock out illicit cash
Insurers will be required to conduct know-your-customer (KYC) exercise, appoint a money laundering reporting officer and file compliance reports on any suspicious transactions with the regulator every three months. IRA though was mum on ownership disclosure of insurance firms, which has been cited as a key weakness of the financial sector in fighting illicit cash.…
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Kenya urged to issue a fresh sovereign bond
Financial analysts say time is ripe for the National Treasury to access cheap dollar debt on the international market after Ghana issued a $750 million Eurobond last Thursday at a yield of 9.25 per cent. Accra badly needed cash to balance the budget before elections in December but had been unable to raise funds, even…
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Kenya:KRA appeals expert lockout in Bidco Sh1.3bn tax row
The Kenya Revenue Authority (KRA) and Bidco Oil Refineries are engaged in a vicious dispute over Sh1.3 billion the taxman is claiming in unpaid revenue for undeclared insurance and crude edible oils imported between 2004 and 2008. The dispute has been brought to light by a suit the KRA has filed in the High Court…
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Kenya:CBK orders banks to obey vague rate caps law in 2 weeks
Commercial banks have two weeks to comply with new interest rate caps even as the wording of the law transmitted by the Central Bank of Kenya (CBK) to chief executives remained vague and confusing. The CBK, whose guidance the Kenya Bankers Association (KBA) had said was awaited on the matter of capping interest rates, Thursday…