Category: East Africa
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DRC’s Gecamines to increase copper output by over 40 pct
Democratic Republic of Congo’s state miner Gecamines expects to increase copper production by over 40 percent this year as new machinery comes online, the company said on Friday. Gecamines plans to produce 24,000 tonnes of copper this year and 50,000 tonnes next year, interim director-general Jacques Kamenga told Reuters. This is up from about 17,000…
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Kenya:Eurobond yield fall signals confidence in economy
The secondary market yield on Kenya’s 10-year Eurobond has fallen to within 0.4 percentage points of coupon value since the beginning of the year, indicating improved investor confidence in the economy. Data compiled by UK-based investment bank Exotix Partners shows that the yield on the debt currently stands at 7.2 per cent, falling from 8.9…
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Kenya:MPs vow to quash Uhuru veto on interest rates Bill
Members of Parliament yesterday rejected bank executives’ counter-proposals to borrowers meant to stop a law capping interest rates and vowed to marshal the required two thirds majority needed to quash a presidential veto. Led by Jude Njomo, the sponsor of the Bill that seeks to cap interest on loans at not more than four per…
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Kenya central bank to set rates at policy meeting on Sept 20
The Central Bank of Kenya said on Friday its Monetary Policy Committee will meet on Sep. 20 to set its benchmark lending rate. At its last meeting in July, the bank held its lending rate at 10.5 percent, saying recent increases in fuel taxes would temporarily put upward pressure on inflation. – Credit: CNBC Africa
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Kenya:Banks may get core capital reprieve in new CBK rule
The Central Bank of Kenya (CBK) has put forward a new guideline to strengthen commercial banks without having to raise capitalisation to the Sh5 billion proposed by the National Treasury in the latest Budget. While the CBK does not propose a particular capital figure, the guideline implies banks that do not have enough free cash…
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Kenya:National Bank’s bad loans quadruple to Sh27.3 billion
Bad loans at National Bank of Kenya more than quadrupled to Sh27.3 billion in the half year ended June, contributing to an 82 per cent drop in net profit in the period. The lender’s net profit in the period stood at Sh311.2 million compared to Sh1.7 billion the year before. This came as provisions for…
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Uganda cuts interest rates again as inflationary pressures ease
Uganda’s central bank cut interest rates on Monday, saying a stable shilling had dampened inflation as it faced calls to also bring down debt auction yields to help the monetary easing feed through to the broader economy. Making its third cut since April and signalling further reductions ahead, the central Bank of Uganda (BoU) lowered…
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Cash-starved Burundi reports stronger inflow from domestic taxes
Tax revenues in Burundi rose by almost 13 percent last month compared with a year ago, official data showed on Monday, a boost for the economy following a year of unrest linked to the re-election of President Pierre Nkurunziza. More than 450 people have been killed in violence and more than a quarter of a…
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Kenya seeks US funds for dual Mombasa Road
Kenya is seeking funds from the United States (US) for the expansion of the busy Mombasa-Nairobi highway into a dual carriageway. The move represents a break with the government’s tradition of raising money for high-profile projects from China. The Kenya National Highways Authority (KeNHA) said it has opened talks with America’s export-import (Exim) bank for…
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Kenya:BAT farmer payments drop by Sh60m as production falls
British American Tobacco (BAT) payments to farmers fell by Sh60 million in 2015 on the back of fewer contracted planters and lower leaf tonnage. BAT says in its 2015 annual report that it paid out Sh1.24 billion, compared to Sh1.3 billion in 2014 even though the quality of the tobacco delivered was higher last year.…