Will effects of Kenya’s fallout with the IMF be felt this year?

Dominic Omondi

National Treasury Director General Budget Fiscal and Economic Affairs Geofrey Mwau (right) and IMF expert Richard Allen during a session in which the lender published a fiscal transparency evaluation report for Kenya in Nairobi. [Willis Awandu, Standard]

When Central Bank of Kenya Governor Patrick Njoroge recently told off the International Monetary Fund (IMF) over the latter’s remarks that the Shilling was overvalued, it was to cap off what had been the frosty relations between Kenya and the global lender for the better of 2018. Things started

Why Kenya’s economic prospects look promising

XN Iraki

Despite demolition such as these rental houses in Nyamavila Estate Kayole, the economy remains resilient due to its diversity. [Jonah Onyango, Standard]

The year 2018 marked a turning point in Kenya’s economic growth. Projections suggest growth will be on an upward trend till 2022. The World Bank in April 2018 explained this growth: “The economic expansion has been boosted by a stable macroeconomic environment, low oil prices,

Reconciliation tops President Uhuru's agenda for 2019

Protus Onyango and Daniel Psirmoi

President Uhuru Kenyatta gives his New Year address to the Nation at State House, Mombasa yesterday. [PSCU]

President Uhuru Kenyatta in his new year message yesterday urged Kenyans to make 2019 a year of hope and reconciliation. President Kenyatta called on Kenyans to celebrate their differences by building a cohesive country and realising that they needed each other for a prosperous nation. “Let 2019 be a year of building bridges to one another and bringing discipline and perseverance to our efforts. Let us respect and celebrate our differences, and use them to build a more vibrant

Uhuru Kenyatta set to appoint new faces to key posts in 2019

Geoffrey Mosoku President Uhuru Kenyatta is expected to make key appointments as he enters the second year of his last term in office. Some of the new appointments are expected in the security sector where top officers are expected to retire after either serving their terms or attaining the mandatory retirement age. Among them is Inspector General Joseph Boinnet, whose four-year term expires in March with

Frustrations over Fastjet refunds

By Ephrahim Bahemu @ephraim.96 ebahemu@tz.nationmedia.com

Dar es Salaam. The low-cost air carrier – which is struggling to come back into scheduled flights

Patel brothers tussle over control of Motisun Group

Motisun Group of Companies director and shareholder Ramanlal Motibhai Patel 

In Summary

Mima Law Associates said in media notice they were under instruction from Ramanlal Patel to sue his brother Shubhash Patel over the manner he was managing the business

By Rosemary Mirondo @mwaikama rmirondo@tz.nationmedia.com

Dar es Salaam. Motisun Group of Companies director and shareholder Ramanlal Motibhai Patel has

Bad loans fall as recovery continues

Finance and Planning Minister Phillip Mpango 

By Rosemary Mirondo @mwaikama rmirondo@tz.nationmedia.com

REVIEW: The rate is still higher than the regulatory benchmark of five per cent, as set in

Morocco meeting seeks stability, position Africa in wealth creation

Panellists discuss the main theme of the conference, Overcoming Choke Points, in Marrakesh, Morocco. PHOTO | MAINA MUIRURI  

In Summary

• The conference held under the theme, “Overcoming the Choke Points,” ended in Marrakesh, Morocco, on December 15.
• Though it is held in North Africa, the meting does not confine its interest to the Atlantic sea board.
• It sends out feelers of inclusion to East and Southern Africa, with a message that the continent can only maximise potential from all its spheres.

If the way to unlocking massive development in the heart of Africa is through asserting itself as

54pc donor cash received in five months, says govt

Finance and Planning minister Philip Mpango 

Dodoma. At least Sh498.5 billion has been issued to the government coffers from July to November 2018, which is equivalent to 54 per cent of projected funds from donors during the said period.

2019: A year tinged with wait and worry for the opposition

Chadema chairman Freeman Mbowe and Tarime Urban MP Esther Matiko on their way to remand prison. PHOTO| OMAR FUNGO. 

In Summary

Given the fact that 2018 was a turbulent year for opposition political parties in Tanzania, politicians must be looking towards 2019 with both anxiety and suspicion not knowing what exactly it holds for them

By Khalifa Said @RealKhalifax ksaid@tz.nationmedia.com

Bridegroom dies while waiting to tie the knot

 

In Summary

A proposed wedding in Arusha District turned into grief and sorrow following the sudden collapse and death of the husband-to-be, Mr Heaven Makupa, inside the church as he awaited arrival of his bride-to-be.

By Mussa Juma @TheCitizenTz news@tz.nationmedia.com

Arusha. Family members, friends and well-wishers at a wedding that was to take place in church on

As 2019 kicks in, leaders call for bona fide reconciliation and respect for law

  Dar es Salaam. Political leaders are celebrating the New Year today hoping that 2019 will open

In Summary

• They insist on the importance of dialogue between political actors as well as expressing strong determination to challenge government’s directives that they find unconstitutional.

By Khalifa Said @RealKhalifax ksaid@tz.nationmedia.com

Govt pays Sh222bn to cashew nut farmers

 

In Summary

• The Prime Minister has clarified that the government has already paid Sh222 billion to cashew nut farmers, while it is still assessing payment for other farmers. He also warned against farmers who have been using unofficial weighing scales known in the trade as ‘Kang’omba.’

By Ludger Kasumuni @TheCitizenTZ lkasumuni@tz.nationmedia.com

The government has already paid Sh222 billion to cashew nut farmers who sold not more than 1,500 tonnes of the crop , Prime Minister Kassim Majaliwa has said.

Burundi calls for special summit over Rwanda row

Presidents Pierre Nkurunziza of Burundi (left), and Paul Kagame of Rwanda. Relations between the two neighbour countries have deteriorated over the past three years. PHOTOS | AFP 

In Summary

• Relations between Burundi and Rwanda have deteriorated over the past three years, with armed attacks resulting in the deaths of civilians and fighters among border communities.

East Africa's PE deals double to $834m, spread across multiple sectors

Stacks of one hundred dollar notes at the bank's headquarters in Seoul. East Africa's private equity deal doubled to $834 million in 2018. PHOTO | AFP 

In Summary

• Private equity activity in the East Africa almost doubled to $834.3 million, compared with $446.78 million last year.
• The increased deal activity is indicative of region’s growing prominence as a private capital destination.
• Kenya still led the region, recording 24 transactions, compared with 18 in 2017.

China takes centrestage in Africa through infrastructure

Construction works on Phase 2A of the Kenya's standard gauge railway at Suswa. China Communications Construction Company are the contractors. PHOTO | GEORGE SAYAGIE | NMG 

In Summary

• New report shows that East African governments fund only 12.9 percent of their projects in the region, with China funding 25.9 percent.
• President Xi Jinping has a grand plan to connect Asia, Africa and Europe through mega projects. The initiative involves infrastructure development and investments.
• Kenya has the largest number of projects in East Africa, with 41 projects valued at $38.2 million, followed by Ethiopia with 38 projects valued at $19.1 million.

Kenya considers fresh options to revive National Bank as plans for riskier loan falter

A National Bank branch in Nyeri, Kenya. Initial attempts by the bank to raise $130 million through a rights issue in 2014 flopped after the proposed transaction was rejected by the government and the Capital Markets Authority. FILE PHOTO | NMG 

In Summary

• If successful, the move could pave way for a rights issue to recapitalise the bank after the two major shareholders shelved a plan to inject $420 million.
• Sources privy to the ongoing discussions say that the shareholders are currently considering the possibility of converting their preferred stocks into ordinary stocks.
• The government’s bid to merge National Bank with other two struggling state-owned lenders failed to take off after a South African consulting firm advised against the merger.

Uganda eyes May 2019 to get funds for domestic flights infrastructure

Passengers on arrival at Pader Airfield. Uganda is improving the domestic aviation infrastructure. PHOTO | MORGAN MBABAZI | NMG 

In Summary

• Civil Aviation Authority (CAA) hopes to secure funds from the government, the African Development Bank and World Bank in May 2019, to start the upgrading of five airfields in different parts of the country.
• Four years ago, CAA launched a 20-year masterplan from 2014 to 2033 that will see the expansion of Entebbe International Airport and the upgrading of several other airfields to promote local and international flights in the wake of swelling traveller numbers and the revival of the national carrier.
• Local aviation companies have often complained about the poor state of the infrastructure of airstrips as the main reason hindering opening up of new routes, as well as imposing high maintenance and operation costs.

How last-ditch efforts to save Ubumwe Hotel flopped

Ubumwe Grande Hotel in Kigali. The hotel was auctioned as KCB Rwanda moved to recover a $19.4m loan. PHOTO | NMG 

In Summary

• Ubumwe was put on the market as lender KCB Rwanda moved to recover a $19.4 million loan that had failed to perform.
• The property fetched $34,053,888.90 in the first round on December 24, in one of East Africa’s unique auctions that came in slightly over the reserve price set by the receiver.
• The winning bid was offered by Umubano Industries Ltd, jointly owned by Alykhan Karmali, the Managing Director, and Robert Bafakulera, a longtime distributor of the former’s products in Rwanda.

With Airbus A220, Tanzania ready for battle for the skies

Air Tanzania's Airbus A220. The airline is the first in African to fly this type of Airbus aircraft. PHOTO | AIRBUS 

In Summary

• The A220 delivery brought Tanzania’s active fleet to six aircraft, comprising four propeller-driven Bombardier Dash-8s, a Boeing 787 Dreamliner and now the A220.
• ATCL now expects another two aircraft, one Dash-8-Q400 and an additional A220.

Foreign debt, high oil prices hit East Africa markets

In March, China launched yuan-denominated oil futures contracts as the world’s top crude importer seeks greater influence over global prices. PHOTO | AFP 

In Summary

• In Kenya, the performance of the equity market slowed down during the nine months to September 30, with the NSE shedding 7.73 per cent of its value.
• In Kampala, the Uganda All Share Index declined six per cent to 1,824.81 from 1,718.28, with the number of deals falling by 17 per cent to 1,405 from 1,693 in the same period.
• Moody’s says the debt burden of Kenya, Rwanda, Tanzania and Uganda is not good for credit quality.

Drug maker Cipla’s post-listing results cause jitters on Uganda stockmarket

Cipla Quality Chemical Industries Ltd launched its initial public offering in September, and has traded shares worth less than Ush150 million ($40,317) since then. PHOTO | COURTESY 

In Summary

• Cipla’s share price has dropped below its initial public offering price of Ush256.5 ($0.069), from a high of Ush262 ($0.07) in September.
• Trading volumes have been fairly low and retail investors fear there will be further declines in coming weeks.
• Many of the retail investors who participated in the IPO were reportedly new players in the market, and expected big gains in a short time.

Tough year for Tanzania businesses

Bank of Tanzania. BoT’s outgoing Governor Prof Benno Ndulu advised banks to partner so as to minimise operational costs and board size, simplify their overall systems and create capital for sustainability and growth. PHOTO FILE | NMG 

In Summary

• The year started with the Bank of Tanzania closing several banks due to undercapitalisation and violation of the Banking and Financial Institutions Act of 2006.
• Five Tanzanian community banks Covenant Bank For Women Ltd, Efatha Bank Ltd, Njombe Community Bank Ltd, Kagera Farmers’ Co-operative Bank Ltd and Meru Community Bank Ltd were in January closed over undercapitalisation.
• At the Dar es Salaam Stock Exchange, total market capitalisation for all 28 listed equities decreased by 7.7 per cent, to Tsh1.696 trillion ($738.2 million).

Zambia's president fires army chiefs

Zambian President Edgar Lungu. PHOTO | AFP 

In Summary

• President Edgar Lungu on Monday sacked the army commander and his deputy.
• He did not give reasons for removing Lieutenant-General Paul Mihova but cautioned his successor.
• President Lungu has been accused of cracking down on dissent since winning a contested election in 2016.

Sydney kicks off global 2019 parties with dazzling spectacle

New Year's Eve fireworks erupt over Sydney's iconic Harbour Bridge and Opera House during the fireworks show on January 1, 2019. PHOTO | PETER PARKS | AFP 

In Summary

• A record amount of pyrotechnics as well as new fireworks effects and colours lit up the city's skyline for 12 minutes.
• An earlier thunderstorm did not dampen the spirits of revellers who camped out at vantage points, some since the early hours of the morning.
• The party atmosphere will sweep across major cities in Asia, Europe, Africa and the Americas as the clock ticks past midnight.

East Africa exports to the US hit $1bn in the year to September 2018

A factory for apparel for export to the US under Agoa at an export processing zone. Rwanda, Uganda, Madagascar, Tanzania and Kenya have developed national Agoa strategies to support critical sectors and items to maximise the duty-free benefits. PHOTO | FILE | NMG 

In Summary

• The United States Agency for International Development’s East Africa Trade and Investment Hub said apparel dominated the region’s sales at 84.4 per cent of exports.
• Kenya remained the largest exporter under Agoa in East Africa, at $454.2 million in the period under review, representing an increase of 14 per cent from $399.7 million made in the year to September 2017.
• Tanzania experienced a rise of seven per cent to $42.1 million, Uganda had a 49 per cent increase to $3.2 million, and Rwanda went up 49 per cent to $5.8 million.

Regional banks face closer scrutiny in 2019 to stem wave of closures

Imperial Bank depositors protest outside the bank’s headquarters in Nairobi, in October 2016. The Central Bank of Kenya has directed all banks to review their business models and consider consolidation to withstand shocks, after putting three financially distressed banks — Dubai, Imperial and Chase — under receivership. PHOTO | NMG 

In Summary

• Cntral banks move to protect depositors in weak and undercapitalised lenders and ensure stability in the sector.
• They have been implementing regulations requiring banks to increase their core capital to withstand financial shocks amid rising non-performing loans.
• These requirements are part of efforts by the East African Community partner states to implement the Basel III guidelines.

Few surprises in 2018 Africa presidential elections

Julius Maada Bio (L) takes the oath of office as new president of Sierra Leone on April 4, 2018 in Freetown, Sierra Leone. AFP PHOTO | SAIDU BAH  

In Summary

• Very few elections led to violence despite widespread complaints of intimidation and rigging by the incumbents.

S.African, Tanzanians among suspected jihadist leaders in Mozambique

Residents in Macomia, Cabo Delgado Province in northern Mozambique on June 11, 2018. A South African and Tanzanians are among suspected jihadist leaders in Mozambique. PHOTO | AFP 

In Summary

• Mozambican prosecutors name a South African and two Tanzanians among leaders of a jihadist group operating in the northern gas-rich region.
• It named the South African as Andre Mayer Hanekom, 60, and the Tanzanians as Chafim Mussa and Adamu Nhaungwa Yangue.
• Jihadist fighters have terrorised remote communities in the gas-rich and Muslim-majority Cabo Delgado region for more than a year.

Experts identify factors that will shape 2019 stock market

Nigerian Stock Exchange

Financial experts have identified outcome of general elections, direction of monetary policy and United States-China trade tension as factors that will shape the country’s stock market in 2019.
They told the News Agency of Nigeria (NAN) in separate interviews yesterday in Lagos that stock market performance in 2019 would be shaped by both external and internal factors.

Banks frustrating growth of e-payments, say customers

By Chijioke Nelson, Asst. Editor, Finance/Economy and Ngozi Egenuka
Top banks, players involved in resolution mess
A small scale dry cleaning operator, based in Festac Town, Mitchell Akpan, was lamenting how he has lost confidence in transacting on Point of Sale (PoS) terminal, as well as transferring money at the Automated Teller Machine (ATM) points.He is one of the frustrated banks’ customers and his

Dollar drifts in year-end trade as clouds gather

PHOTO: OSCAR SIAGIAN/AFP/Getty Images

 By NAN

The dollar was broadly steady in thin year-end trading on Monday with the Australian dollar leading gainers as tensions over a trade dispute between the United States and China faded on expectations of progress in trade talks.

Investors lost over N4 trillion in 2018

Graph showing investment

 By Helen Oji

Contrary to analysts’ expectations that the surge witnessed in the performance of the nation’s bourse in 2017 would translate to a high investment yield in 2018, stock market activities last year, remained feeble across sectors, as investors lost a whooping N4.2 trillion. Market watchers had predicted that the performance of listed firms will trigger an upturn in market activities last year, even as the

Firm reaffirms commitment to quality, tech driven elevator

[FILE] Elevator

By Benjamin Alade

Eliel Jerahmeal Nigeria Limited, authorised distributor of Xizi Elevator, has restated its commitment to providing quality escalator equipment to boost consumer presence in Nigeria and across Africa. Since its entry into the Nigerian market, the energy saving brand of elevator has earned the company awards as Africa’s best premium quality elevators and escalators products company at the world quality summit, and Africa quality elevator order of merit awards due to its world class standard

Sterling Bank unveils Africa’s skills champions

[FILE] Sterling Bank

Leading lender, Sterling Bank Plc, has unveiled champions at the recently-concluded, iCreate Skills Festival, with 10 of them to represent Nigeria in Russia in 2019. The winners are Otareh Alvin, who won in the cooking category; Nejo Tolulope (graphics); Silas Adedoyin (web design); Patrick Obafemi (app development); Barnabas Kudi (robotics); and Afolabi Caleb Kayode (art).

Standard Chartered Bank elevates Adesola

[FILE PHOTO] Standard chartered bank Nigeria

Standard Chartered Bank appointed Mrs. Bola Adesola the Senior Vice-Chairman, Africa, with immediate effect, following Statutory and Regulatory approvals.

In this new capacity, she will be responsible for supporting the execution of the bank’s strategic intent within the Africa region, including representing Standard Chartered Bank on various boards in

Investors’ interest in bellwethers lift NSE’s index by 1.27 per cent

[FILES] Nigerian Stock Exchange

Investors’ appetite for highly capitalised stocks brought the equities market to a bullish close on the last trading day of the year, as the All-Share Index (ASI) rose by 1.27 per cent. Yesterday, the ASI was rose 392.78 absolute points, representing an increase of 1.27 per cent to close at 31,430.50 points; just as the market capitalisation gained N384 billion to close at N11.721 trillion.
The upturn was impacted by gains recorded in medium and large capitalised stocks, amongst which

Dangote Flour Mills Introduces Two Products to Boost Operations

Goddy Egene

 Dangote Flour Mills Plc has rolled out two products, Dangote Semolina and whole wheatmeal into the Nigerian market as part of its   desire to put tasty meals on the tables of Nigerians and boost its bottom-line.

 The company said the in a statement that the  unveiling of the two products took place in Kano and

Egypt Expects IMF Loan

Egypt expects to receive the fifth instalment of its $12 billion IMF loan programme in January, the president’s office has disclosed.
The International Monetary Fund offered the three-year loan programme in 2016 after Egypt agreed to a package of reforms including the devaluation of the pound, cuts to energy subsidies and the introduction of a value-added tax, according to Reuters.

Economic and Business Outlook for 2019

Background concept wordcloud illustration of GDP domestic economy

Muda Yusuf

The business and economic space was characterized by several challenges and accomplishments in 2018. However, investors had to contend with the typical constraints of the business environment – high interest rate, weak GDP Growth, weak consumer demand, deficient infrastructure, energy issues, traffic gridlock on Lagos port roads and insecurity in some parts of the country, among others.

Telecoms Subscribers Hit 169.1m in November

By Emma Okonji 

Telecoms subscribers’ number across all networks rose to 169.1 million in November 2018, up from 165.2 million as at October same year.

The rise in the figure of subscribers’ number, which was released yesterday by the Nigerian Communications Commission (NCC), also showed an increase in teledensity from 118.03 per cent in October this year, to 120.79 per cent in November same year.

MTN Nigeria Unveils Survey to Drive Businesses

A worker walks past an outlet of South Africa's MTN Group in Johannesburg, South Africa, February 23, 2016. REUTERS/Siphiwe Sibeko/File Photo

By Emma Okonji

MTN Nigeria in partnership with Communication and Marketing Research Group Limited (CMRG), has launched a business tool for customer insight, focusing on delivering a better business experience.

$8.1bn Refund: The CBN-MTN Drama and Impacts on Investor Confidence

CBN Governor, Mr. Godwin Emefiele

In this piece, James Emejo reviews the recent resolve by the Central Bank of Nigeria to reverse its decision on MTN Nigeria to refund the $8.1 billion the company was accused to have repatriated illegally

In August, the Centra; Bank of Nigeria sanctioned MTN Nigeria over alleged illegal repatriation of $8.1 billion from the country to its parent company in South Africa, in violation of the extant laws and regulations.

Itel, Google Host Carnival

Itel Mobile has partnered Google to host Ikeja community and its shopper to a day of fun and throwback thrills in the 2018 edition of the annual computer village carnival.

The event provided an opportunity for Itel to give out massive discounts on all Itel smartphones, fantastic freebies, mega raffle draw and there was also live performance from Nigeria’s legendary musician, Danfo driver.

iPhone XR Marketer Promises Consumers Improved

By Raheem Akingbolu

As part of its strategies to impact lives of consumers, especially during this festive period, Redinton Nigeria, the sole distributor of iPhone brand in the country, has introduced iPhone XR, the latest technology from the stable of Apple Incorporated, to the Nigerian market, with the assurance that it would further boost the social status of its users.

9mobile Promises Exciting 2019

By Emma Okonji

9mobile has expressed gratitude to its customers and all Nigerians for their steadfast support and loyalty in 2018, and assured them of continuous delivery of excellent services in the coming year.

The Acting Managing Director at 9mobile, Stephane Beuvelet, in an end-of-year message, said the management was deeply grateful to customers and other stakeholders for their unwavering support

CBN Introduces Consumer Complaints Management System

By Nume Ekeghe

In a bid to enhance financial stability and promote consumer confidence in the banking system, the Central Bank of Nigeria (CBN) has introduced consumer complaints management system (CCMS).

In a circular signed by the Director Consumer Protection Department, CBN, Mr. Kofo Salam-Alada, the banking sector regulator explained that the policy becomes effective from January 2, 2019.

Tanzania says only 109 out of its 297 forex bureaus meet requirements

A security guard outside a bureau de change shop in Tanzania. FILE PHOTO | NMG 

By THE CITIZEN

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Dodoma

Just about a third of Tanzania's forex bureaus have complied with a new law on forex business in the country, with the rest failing to meet the required conditions in the fresh registration ordered by the government.

Only 109 out of 297 forex bureaus, which existed before the start of the new registration, passed the requirements, according to the government.

Telkom in push to have cross-network agent dealings

Telkom CEO Mugo Kibati. FILE PHOTO | NMG 

By DOREEN WAINAINAH

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Summary

• If implemented, agent and merchant interoperability would mean that customers for example, on T-Kash will be able to withdraw funds from Safaricom’s M-Pesa or Airtel Money agents and vice versa.