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Banking & Finance

NMB IN A MOVE TO ENHANCE FINANCIAL INCLUSION USING MOBILE PHONE TECHNOLOGY
The National Microfinance Bank (NMB) has announced plans to enhance financial inclusion using mobile phone technology blended with internet ...
The National Microfinance Bank (NMB) has announced plans to enhance financial inclusion using mobile phone technology blended with internet services.
The bank envisages to use the platform to enable people to save thus do away the cash in- cash out trend, NMB Managing Director, Ms. Ineke Bussemaker said.
He said the mobile technology would enrich banking coverage and bring many closer to financial services including offering micro loans.
The NMB Chief Risk Officer, Mr. Tom Borghols, said in this year the bank plans to have some 250 banking agents to increase its outreach of its 163 brick and mortar branches.
“We will place agents banking to the places where we don’t have branches...so as to reach many,” Mr. Borghols said.


FASTJET TARGETS TO BUILD A FLEET OF UP TO 34 AIRCRAFT OPERATING TO 40 DESTINATIONS BY THE END OF 2018
Fastjet is now targeting to build a fleet of up to 34 aircraft operating to 40 destinations within and from Tanzania, Zambia, Zimbabwe, South Africa ...
Fastjet is now targeting to build a fleet of up to 34 aircraft operating to 40 destinations within and from Tanzania, Zambia, Zimbabwe, South Africa, Kenya and Uganda by the end of 2018.
“We currently operate three aircraft from our Tanzania base. Our plan is to grow to a fleet of thirty-four aircraft by 2018 operating from bases across the region,” Clive Carver Fastjet Interim Chairman said.
He said that from time to time there will be issues in some of the territories in which the company seek to operate.
“This is the nature of operating in emerging markets. However, provided we deliver according to our plans over the next few years, the value of our Company should increase strongly to reflect that success,” he said.
According to the newly announced financial result for the year to 31 December 2014 Fastjet has seen a significant increase in the number of passengers travelling on the company’s core Tanzanian routes, with revenue more than doubling to $53.8 million from $26 million in 2013.
Aircraft utilization grew sharply and average revenue per passenger also climbed with services such as seat selection proving increasingly popular with customers.
“Strong underlying traffic growth during the year continues to demonstrate that fastjet’s low-cost airline model works in the African market. This growth in traffic underpins our belief that people across Africa are increasingly embracing the travel opportunities offered by fastjet’s safe, reliable, and great value product, with a high percentage of first time fliers,” Ed Winter, fastjet Chief Executive Officer said.
He said that fastjet continues on its path of expansion, with new routes in Zimbabwe and Zambia planned in 2015. “I look forward to this coming year with great confidence as fastjet leverages its first mover advantage to the benefit of our customers and shareholders.”

AVANTI COMMUNICATIONS SIGNS NEW CONTRACT WITH TTCL
Avanti Communications has signed a new contract with Tanzania Telecommunications Company Ltd (TTCL), for satellite broadband.
Avanti Communications has signed a new contract with Tanzania Telecommunications Company Ltd (TTCL), for satellite broadband. The contract will expand TTCL’s high-speed broadband network to customers beyond the reach of fiber.
Deployed via Avanti’s HYLAS 2 satellite with 100 percent coverage of Tanzania, TTCL will supply a new satellite broadband offering to its consumer, enterprise and government customer base imminently.
“Avanti’s proven Ka-band satellite technology will deliver high-speed broadband to our national customer base, which demands the highest levels of service quality,” Dr. Kamugisha Kazaura, Chief Executive of TTCL said.
TTCL is the incumbent national telecoms operator of Tanzania. The company was partially privatized in 2001, and provides voice and data services to more than 300,000 business and residential customers throughout the country.
“This is a significant contract with one of the most important telecoms operators in East Africa. The quality and flexibility built in to Avanti’s network from its design ensures we deliver to the most demanding customers’ needs. Our Ka-band satellite technology has a huge role to play in supporting TTCL to bridge Tanzania’s digital divide, today,” David Williams, Chief Executive of Avanti Communications said.

NMB RECORDS A TSHS 4 TRILLION BALANCE SHEET GROWTH, LARGEST IN THE BANKING INDUSTRY
Though National Microfinance Bank’s profitability in the quarter one of 2015 slowed down in a quarterly basis the balance sheet grew substantially ...
Though National Microfinance Bank’s profitability in the quarter one of 2015 slowed down in a quarterly basis the balance sheet grew substantially to Tshs 4 trillion, which is the largest in the banking industry, NMB Chief Financial Officer, Waziri Barnabas said.
The NMB said its net profit has slowed down as the result of reviewing lending procedures to maintain low defaulting ratio, as opposed to claims that the strategy was part of competition.
NMB, the biggest bank in term of profitability, said despite a profit slowdown of 0.5 percent to Tshs 38.36 billion during the first quarter of 2015, the firm’s balance sheet is very healthy.
“The slowdown does not relate to competition on the ground, but a result of consolidated and risk management, as well as prudent lending,” Mr. Barnabas said.
He said the bank wants to be predictable, consistent and sustainable without any slips... but things will be okay in the remaining quarters.”
However, NMB’s Chief Risk Officer Tom Borghols said they still maintain a good chunk of government business but focus on prudent lending to maintain low NPLs.
“We put a break on lending toward the end of last year (2014), which affects our revenues...we are now lending and your will see better results for the rest of the year,” Mr. Borghols said.
NMB, NPLs ratio is among the lowest in the industry that almost stagnated at 2.6 percent. The industry benchmark is 5.0 percent. Profit (slowdown) has no link with government business.


Money Markets

Co-op Bank jumps ahead of StanChart in NSE stock value

A Co-operative Bank customer is served in a banking hall. Its share price has improved on foreign investor buying and profit boosting projections. PHOTO | FILE
A Co-operative Bank customer is served in a banking hall. Its share price has improved on foreign investor buying and profit boosting projections. PHOTO | FILE 
By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com
In Summary
  • Cooperative Bank is now valued at Sh105 billion—behind leaders KCB and Equity—with its share price remaining steady at near all-time high levels trading at between Sh21.50 and Sh22 over the past month.

Cooperative Bank’s market value has jumped ahead of Standard Chartered to become the third-largest listed lender, for the first time putting indigenous banker in the top-three spots.
This follows StanChart’s slide that has shaved Sh23 billion off the counter’s value at the NSE to Sh87 billion over the past three months.
The 114-year-old subsidiary of StanChart Plc has climbed down from its all-time high of Sh355 a share recorded on March 13 to a two-year low of Sh284 at close of trading on Thursday.
Cooperative Bank on the other hand is valued at Sh105 billion—behind leaders KCB and Equity—with its share price remaining steady at near all-time high levels trading at between Sh21.50 and Sh22 over the past month with new support from foreign investors.
Analysts attribute the slide on investor worries over StanChart’s poor financial results, where the bank recorded a 28 per cent decline in first quarter 2015 net profit to Sh1.8 billion.
“StanChart posted dismal earnings results despite a strong financial position depicted by its balance sheet. This has seen investors engaging in distributive activities to cash in their positions in order to take positions in other bank counters,” said Genghis Capital analyst Mercyline Gatebi.
Listed banks, while recording lower than expected financial results have generally increased their profits, making the StanChart’s fall in earnings to stand out from peers.
Analysts at Standard Investment Bank (SIB) said there are concerns by investors over whether StanChart will be taking a more conservative line of business through low allocation to loans and focusing on short-term working capital loans—at a time when banks are aggressively looking to expand their business by roping in more customers across all levels of business.
“Visibility of the bank’s performance and strategy remain poor given its low management-investor interaction,” said SIB in a coverage note on the bank quarter one results.
Coop Bank which was established in 1965 on the other hand has been boosted by growing demand for the counter from foreign investors, who have pumped in a net of nearly Sh1.1 billion this year.
Cooperative has also indicated it expects to get a Sh1.8 billion profit boost from cost savings and operating efficiency resulting from last year’s restructuring that led to 160 staff layoffs.
In the top two positions, KCB remains ahead of Equity Bank having regained its position as the top lender by capitalisation at the bourse in early April when its share surged to an all-time high of Sh63.
This coincided with an Equity Bank slide, a result of profit taking and price correction.
KCB is valued at Sh177.56 billion going by Thursday’s closing price of Sh59.50, with Equity valued at Sh174.95 billion at a price of Sh47.25 a share.
Equity briefly moved ahead of KCB on Wednesday but dropped back on Thursday following KCB’s gain of a shilling on foreign demand.
In its June Africa markets update, research firm Stratlink Africa said that Equity’ share is likely to start reaping the benefit of its expansion into new markets such as Congo DRC.
“We assess that investors are adjusting positions in select counters which have witnessed a rise in price in the recent past. Investors are, however, likely to be bullish about Equity Bank (and Safaricom) in the coming months in view of their ongoing developments,” said Stratlink.
Analysts at Genghis Capital said that going forward investors are also going to keep a close eye on Central Bank action on interest rates which will determine earnings levels of banks.
A rate hike will be both a blessing and a curse for banks, with the higher loan pricing helping boost interest earnings, but with a risk of lower uptake of loans as well threatening to neuter some of the expected boost


Money Markets

Kenya takes lion’s share of Sh77bn private equity deals in region


Ms Sheel Gill, KPMG deal advisory director. She said most investors had overlooked opportunities in the logistics and education sector. PHOTO | COURTESY
Ms Sheel Gill, KPMG deal advisory director. She said most investors had overlooked opportunities in the logistics and education sector. PHOTO | COURTESY 
By JOHN GACHIRI
In Summary
  • A new PE survey by KPMG found there were 79 disclosed private equity deals worth $800 million (Sh77 billion) between 2007 and 2014.
  • Kenya accounted for the lion’s share of the reported deals taking 63 per cent of the reported billions.
  • Tanzania was second at 15 per cent, Uganda (10 per cent), Rwanda (eight per cent) and Ethiopia at four per cent.

Most of the Sh77 billion private equity (PE) funds have targeted the agriculture, financial services, energy and natural sectors in the region, according to a new survey.
The PE survey by financial consultancy KPMG and the East Africa Venture Capital Association (Eavca), the industry lobby, says most funds have been absorbed in select sectors over the last seven years.
The survey found there were 79 disclosed private equity deals worth $800 million (Sh77 billion) between 2007 and 2014.
“Furthermore, the majority of the announced deals are in the energy and natural resources sectors. Our survey, however, indicates the agricultural, financial services and fast moving consumer goods (FMCG) sectors have also experienced a large part of the deals activity,” said the survey.
Kenya accounted for the lion’s share of the reported deals taking 63 per cent of the reported billions.
Tanzania was second at 15 per cent, Uganda (10 per cent), Rwanda (eight per cent) and Ethiopia at four per cent.
Some of the reported deals in the financial sectors in 2014 included Leapfrog Investment exit from Apollo Investment through selling 26.9 per cent stake in the insurer to Swiss Re and Fusion Capital’s 25 per cent purchase of REMU microfinance bank.
In agribusiness, Fanisi Capital bought a 40.15 per cent stake in Laikipia-based abattoir Ngare Narok Meat Industries for Sh221 million.
The survey found the agricultural sector accounted for 27 per cent of the reported deals, financial services 14 per cent, FMCG 11 per cent, ICT 10 per cent, healthcare nine per cent while logistics and other industries accounted for the remaining 29 per cent.
Investments in agriculture were however mainly registered in the secondary sector such as meat and dairy processing.
KPMG deal advisory director (Kenya) Sheel Gill said funds are attracted to these industries since they serve the growing middle class with an increasing disposable income.
Ms Gill however said there are opportunities in sectors such as education and logistics which have been overlooked.
“Majority of the middle class save for their children’s education. This is also a sector where not so many funds are looking at,” Ms Gill told the Business Daily.
A 2014 report by financial consultancy Ernest & Young found that between 2007 and 2013 inflows to Kenya were some of the fastest growing in sub-Sahara Africa, only second to Ghana, with most of them coming from private equity funds.


Money Markets

Bond traders face lower earnings as turnover falls for the second month

An employee of the Nairobi Securities Exchange monitors trading. Bond turnover at the NSE dropped by 13 per cent in the month of May. PHOTO | SALATON  NJAU
An employee of the Nairobi Securities Exchange monitors trading. Bond turnover at the NSE dropped by 13 per cent in the month of May. PHOTO | SALATON NJAU 
By GEOFFREY IRUNGU, girungu@ke.nationmedia.com

The secondary bond market suffered a second consecutive month of falling sales in May due to low cash supply, further reducing traders’ earnings.
Fresh data from Kestrel Capital shows that the turnover declined 13 per cent to Sh22 billion in May, as the financial markets closed another month at one of its tightest positions this year.
“Bond turnover at the Nairobi Securities Exchange (NSE) dropped by 13.0 per cent in the month of May 2015 to Sh22.0 billion from Sh25.3 billion the month before,” said Alexander Muiruri, head of fixed-income at Kestrel Capital, in an update to clients.
Traders normally earn a commission of 0.035 per cent of the transaction value.
Liquidity in the meanwhile continues to be tight, with the commercial banks failing to meet their cash reserve ratio (CRR) — the cash kept at the central bank as a fraction of total deposits — which fell below the 5.25 per cent target set by law for the second week in a row.
“Commercial banks’ clearing accounts recorded a deficit of Sh3.2 billion in relation to the cash reserve requirement of 5.25 per cent (Sh125.4 billion) in the week ending May 27, 2015, compared with a deficit of Sh5.1 billion recorded in the previous week,” said the Central Bank of Kenya (CBK) in its weekly report.
It is also the second consecutive month that the banks are struggling to meet the CRR, underlining the difficult market conditions.
Mr Muiruri noted that there has been subdued State spending, meaning that cash is being held at CBK accounts of various government ministries and departments.
With less need for cash, the government has also lowered its borrowing from the CBK through the overdraft facility. The low spending by the State has in turn pushed up interbank or money market interest rates.
As at the end of last week, the interbank rate stood at an average of 12.30 per cent, a significant 2.3 percentage point increase within just a five-day period.
“The average interbank rate increased to 12.3 per cent in the week ending May 27, 2015 from 10.0 per cent in the previous week. During the week under review, the volume transacted decreased to Sh15.7 billion from Sh18.4 billion traded in the previous week,” said the CBK.
In the course of the month of May, the infrastructure bonds (IFBs) were the most popular as they transacted 34 per cent of the volume that amounted to Sh7.48 billion.
IFBs are normally attractive because they are exempt from withholding tax of 10 per cent for Kenyans and 15 per cent for non-residents —which is applicable on other government bonds.
The 10-year bonds were the second most popular as they transacted Sh5.72 billion or 26 per cent of the total turnover.
According to Kestrel Capital data, the government had borrowed in the domestic market a net of Sh133.76 billion by the end of last month and needs to borrow about Sh30 billion more this month to meet its Sh163.7 billion revised target.
 We currently project a shortfall in borrowing of Sh29.94 billion (by end of May) meaning that the Treasury needs at least 100 per cent subscription for all auctions in June,” said Mr Muiruri.

 Cargo containers at the port of Mombasa. The law allows owners of vessels and cargo docking at the port to procure insurance services overseas, which eats into local underwriters’ incomes. PHOTO | FILE

Cargo containers at the port of Mombasa. The law allows owners of vessels and cargo docking at the port to procure insurance services overseas, which eats into local underwriters’ incomes. PHOTO | FILE 

Liberty insurance offers funeral cover for in-laws

By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com
In Summary
  • The new cover will see customers pay premiums starting at Sh260 per month, offering benefits of Sh100,000, Sh200,000 and Sh500,000.

Life underwriter Liberty Life Assurance has started offering a low-cost funeral insurance product, allowing the insured to extend the cover to parents and parents-in-law.
The new cover will see customers pay premiums starting at Sh260 per month, offering benefits of Sh100,000, Sh200,000 and Sh500,000.
Under the Legacy Plan, the parents, who must be aged below 75 years, will not require to undergo a medical checkup upon registration. Liberty said the plan may be extended to a family of up to six children, in addition to the parents.
“Insured persons with a regular income are not only expected by the realities of our socio-economic context to provide for the financial stability and social security of their immediate families when they are gone, but also to take care of their parents, even in death for final rites,” said Liberty Life managing director Abel Munda.
The cover offers a lump-sum payment of half the cover amount on the death of the main insured person to take care of funeral expenses, and a fifth of the cover payable to take care of immediate family needs.
Liberty said it is an upgrade of its other funeral insurance package dubbed Msiba Plan offering additional cover for spouses, in case of accidental death and disability, among other benefits previously available to the insured only.
Data from the Kenya Association of Insurers ) shows life insurance penetration in Kenya by the end of 2013 stood at 1.3 per cent, while overall insurance penetration stood at 3.4 per cent.

NSE share index drops below 4800 psychological mark

Investment brokers at the Nairobi Securities Exchange. PHOTO | FILE
Investment brokers at the Nairobi Securities Exchange. PHOTO | FILE 
By JOHN GACHIRI
In Summary
  • The NSE 20 share index breached the 4800 psychological barrier after declining 0.54 per cent on Wednesday from 4816.66 points.
  • The Nairobi bourse has performed poorly against its frontier markets peers due to the weakening of the shilling against the dollar and outflows to the Egyptian and Nigerian markets.

The Nairobi Securities Exchange (NSE) 20 share index has continued on a downward trend since the beginning of the week closing at 4790.5 points on Wednesday.
The index breached the 4800 psychological barrier after declining 0.54 per cent on Wednesday from 4816.66 points.
Turnover however rose to stand at Sh1.3 billion from previous Sh773.9 billion while the number of shares traded increased to 34.3 million from 18.9 million over the same time.
The increase in activity was on account of foreign investors who were bullish on Equity, EABL and Safaricom shares. Standard Chartered’s share price closed at Sh265 that represented a 28-month low.
Kenya’s market has performed poorly against its frontier markets peers due to the weakening of the shilling against the dollar and outflows to the Egyptian and Nigerian markets.
“Most notable of the decliners was Kenya, a longtime frontier darling that is now eight per cent below its February peak and experiencing the first multi-month pullback in over four years.
“The driver for the pull-back looks to be almost entirely currency-driven; the shilling has weakened eight per cent since March and is rapidly closing in on Sh100 to the dollar,” said analysts at Citi.
Citi however said the weakening of the shilling was not so bad since it would allow foreign investors to buy stocks at better prices.
The introduction of capital gains tax has also been cited as a cause for the reduced activity especially from foreign investors.
Some brokers however told the Business Daily that foreign investors are still buying and selling local stocks since there is still lack of clarity on how the newly reintroduced tax is to be implemented.
Brokers say that the five per cent tax on gains will make Kenya one of the few countries to impose the tax and will make Nairobi’s plan to be a financial hub more difficult.
Foreign investors accounted for 72 per cent of Wednesday trading.


WB lends Nile Basin USD 22 m to boost L.Victoria fisheries


World Bank
 The World Bank has approved USD22m additional financing for East Africa's Lake Victoria environmental management project.
The lender said on Wednesday the additional financing will boost the number of beneficiaries to 450,000, roughly a 50 percent increase in the number under the current project.
“The grant supports implementation of expanded activities that scale up the project's impact, which aims to tackle the environmental challenges of the Lake Victoria Basin over the long-term to improve the welfare of its inhabitants," the World Bank said in a statement issued in Nairobi.
It said the project will contribute to collaborative management of the Lake Victoria Basin among the partner states and improve the environmental management of targeted pollution hotspots and sub-catchments in the Basin.
Kenya and Tanzania each will receive USD10m in International Development Association (IDA) credits for project activities, with a USD2m grant for regional activities under the project.
The bank also said an additional USD500,000 Cooperation in International Waters in Africa grant is pending confirmation from the donors. The funding approval will extend the project until 2017.
World Bank Task Team Leader for the Project, Stephen Ling, said the project's focus on economic diversification and rehabilitating watersheds and other natural systems is helping to boost human and ecological resilience to climate change.
"Ultimately the project aims to create sustainable wealth and employment for all of the basin countries through green growth and reversing the decline in Lake Victoria Basin and the surrounding natural resources," Ling added.
Lake Victoria is the world's second largest freshwater body and is a shared natural resource, whose water, pollutants and fish stocks freely cross national boundaries of the five countries in the Basin, namely, Burundi, Kenya, Rwanda, Tanzania and Uganda. The Lake supports the world's largest freshwater fishery with a total annual landed catch value estimated at around USD500m.  The waters of the Lake and its catchment also provide 90 percent of Uganda's hydropower, and most of the hydropower for Rwanda and Burundi. 
Yet the Lake Victoria Basin has also become a global example of environmental degradation brought on by overfishing, industrial and wastewater pollution and lax management of the natural resources in the Basin.
Colin Bruce, World Bank's Regional Integration Director for Africa, said the project is generating a wide range of benefits, including enhancing the Basin's economic growth, reducing poverty in riparian communities, fostering regional cooperation, and protecting the integrity of a delicate Basin ecosystem.
"By enhancing services and livelihoods for the poor and increasing the long-term productivity of the Basin's resources, the project contributes directly to ending extreme poverty for the millions of families in the Lake Victoria Basin," Bruce said.


BoT now to offer community bank guidelines in Manyara

Finance deputy minister Mwigulu Nchemba (L) has a word with Jenista Mhagama, Minister of State in Prime Minister's Office in Dodoma yesterday.
 The Bank of Tanzania (BoT) is ready to offer professional guidelines on how to set off a community bank in Dongobesh ward, Manyara Region which will also cater for other neighbouring wards in the region.
Finance Deputy Minister, Mwigulu Nchemba, made the announcement yesterday in the National Assembly during the questions and answer session.
He was responding to a question by Special Seats MP (CCM) Martha Umbulla who wanted to know of government plans in the establishment of a bank in the said ward.
"Dongobesh has all basic requirements for the establishment of a bank…if established, the bank will cater also for other wards such as Hydom, Maretadu, Manghang, Tumati, Endamitay, Bashay and Yaedachini, what is government doing to support the establishment,” she enquired.
Nchemba responded saying; "The government will not be involved in establishing any business...we will only create conducive environment to attract the private sector to invest in various sectors including the banking sector.”
“Moreover, through the Central Bank, the government will provide professional consultation to the ward in question as well as other areas that are ready for the investment," he said.
According to him, the government will continue to influence the banking sector to extend their financial services to urban and rural areas.


Lawmakers approve Sh2.1trn spending plan for next year

The joint National Assembly and Senate sitting on March 27, 2014. FILE PHOTO | BILLY MUTAI
The joint National Assembly and Senate sitting on March 27, 2014. The National Assembly has approved Sh2.1 trillion expenditure for the next financial year. FILE PHOTO | BILLY MUTAI |   NATION MEDIA GROUP



By JOHN NJAGI
More by this Author
The National Assembly has approved Sh2.1 trillion expenditure for the next financial year. This paves the way for reading of the Budget by the National Treasury Cabinet Secretary Henry Rotich on Thursday, next week.
The MPs unanimously adopted the budget estimates for the 2015/16 financial year on Wednesday evening after passing the Division of Revenue Bill.
According to the estimates on revenue and expenditures for the next financial year presented by Budget and Appropriations Committee chairman Mutava Musyimi (Mbeere South MP), Sh1.1 trillion will be withdrawn from the consolidated fund, and Sh399 billion from development budgets.
A total of Sh1.8 trillion was approved for financing the national government, the Judiciary and Parliament in the next financial year.
The budget committee also made several re-allocations and increased allocations for government departments even as it slashed others to satisfy the recommendations of parliamentary teams, which had protested that their demands had not been met.
Approval of the budget estimates paves the way for presentation of the 2015/16 spending plan by Mr Rotich when Parliament resumes from recess next week. The event will coincide with the presentation of national budgets in other East Africa countries.
To raise the additional Sh3 billion that had been agreed by a Senate and National Assembly mediation team, the Senate and the Judiciary were the biggest losers.
The former lost Sh1 billion for oversight of affairs in the counties, while the latter’s capital allocations were slashed by Sh800 million.
ELECTIONS
Among those who benefited from increase in funding was the independent Electoral and Boundaries Commission, which received an additional Sh30 million for purchase of a system for mapping and collection of geographic data for transmission of election results and logistics.
The National Police Service Commission also received an additional Sh121 million, Sh5 million being for development of a scheme of service for the officers, Sh71 million for recruitment and Sh45 million for vetting.
An additional Sh15.4 million was also allocated to the office of the controller of budget for salaries and Sh80 million to the Independent Police Oversight Authority.
Other beneficiaries were the office of the Director of Public Prosecutions, which received an additional Sh178 million for witness and victims expenses, training of new prosecutors and a medical insurance for them.
RIVATEX REVIVAL
Meanwhile, Sh600 million was re-allocated from the Uwezo Fund to the Youth Development Fund, the Women Enterprise Fund and the Anti Female Genital Mutilation board respectively.
Sh500 million was also re-allocated from the Export Processing Zones Authority under the Ministry of Industrialisation for revival of Rivatex, a clothing company in Eldoret.
Among departments whose budgets were slashed is the Office of the President where Sh100 million for Cabinet affairs programme, allocation for police housing project by Sh50 million and Sh173 million meant for Huduma Centre, was also slashed.
A whopping Sh1.5 billion was also taken away from the Kenya Wildlife Service while Sh300 million meant for tourism recovery was cut.
Mr Musyimi said the committee was careful not to burst the budget ceilings in the Budget Policy Statements, which provides that changes to the estimates should not be made unless it was absolutely necessary.
He also said Parliament should speedily conclude deliberations on the Equalisation Fund regulations in order to ensure counties begin benefiting from the money.

AfDB resources centre seeks comment on 2015-2020 strategy

 
By: Natalie Greve Creamer Media Contributing Editor Online EMAIL THIS ARTICLE © Reuse this Photo by Bloomberg JOHANNESBURG (miningweekly.com) – The African Development Bank’s (AfDB’s) newly established African Natural Resources Center (ANRC) has launched an online consultation to seek comments from stakeholders on its draft strategy for 2015 to 2020, which would outline ways in which it could support effective natural resources management by governments in Africa.


The centre outlined in a statement this week that the recommendations and comments received would aid it in assisting African countries to maximise development outcomes derived from Africa’s natural resources by boosting their capacity to achieve inclusive and sustained growth from natural resources. “This series of consultations will help the ANRC better advise African countries on natural resources management policy formulation and implementation to enable them to extract greater economic and social value from the development of natural resources,” it explained.

The establishment of the ANRC by the AfDB came in a bid to enhance African countries’ capacity to improve development outcomes through the sustainable use of renewable and nonrenewable resources. The centre aimed to achieve this through interventions that increased the effectiveness of public and private sector governance and institutional frameworks. It would further assist African countries to increase their economic deliverables from resources exploitation by advocating good governance, building institutional capacity, providing policy advice, offering strategic guidance and delivering technical assistance.

“The strategic objective is informed by the call by African countries for support in improving outcomes from the use of natural resources wealth and the expectation of citizens of resource-rich countries of inclusion in decision making and to benefit from the wealth. “Africa has indeed significant renewable and nonrenewable natural resource wealth,” it held. According to the ANRC, it is estimated that Africa’s exctractive sectors accounted for about 30% of all global minerals reserves.

Its proven oil reserves constituted 8% of the world’s reserves and those of natural gas amounted to 7%, while minerals accounted for an average of 70% of total African exports and about 28% of gross domestic product. Those wishing to participate in the online consultation could do so by accessing the following address: http://j.mp/ANRC_Consultation. Edited by: Chanel de Bruyn Creamer Media Senior Deputy Editor Online  It is our preference that if you wish to share this article with others you should please use the following link:  http://www.miningweekly.com/article/afdb-resources-centre-seeks-comment-on-2015-2020-strategy-

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