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
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
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.
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
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
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
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
By The guardian reporter
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
By The guardian reporter
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. The
National Assembly has approved Sh2.1 trillion expenditure for the next
financial year. FILE PHOTO | BILLY MUTAI |
NATION MEDIA GROUP
In Summary
A total of Sh1.8 trillion was approved for financing the
national government, the Judiciary and Parliament in the next financial
year.
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.
A whopping Sh1.5 billion was
also taken away from the Kenya Wildlife Service while Sh300 million
meant for tourism recovery was cut.
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
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-
The World Bank has approved USD22m additional financing for East Africa's Lake Victoria environmental management project.
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.
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