Why EACC needs commissioners to realise its mandate

Opinion and Analysis

EACC headquarters in Nairobi. Photo | FILE 

By ANDREW K. TANUI

In Summary

• There is need to amend the Anti-Corruption and Economic Crimes Act.

President Uhuru Kenyatta’s recent decision to suspend the chairman and vice chair of the Ethics and Anti-Corruption Commission (EACC) following a resolution of the National Assembly recommending their removal and the earlier resignation of the other commissioner raises the question as to whether the commission can operate without commissioners in office.

Kenya Power borrows Sh940 million from UBA

Corporate News

UBA branch in Community Area, Nairobi. PHOTO | FILE 

By SIMON CIURI

In Summary

• Kenya Power will use the funds to upgrade its power infrastructure in readiness to distribute the planned additional 5,000 megawatts (MW) expected to be generated by 2017.
• This is the first time UBA, whose parent firm is based in Nigeria, has loaned nearly Sh1 billion to a parastatal in Kenya.

United Bank of Africa (UBA), has given Kenya Power $10 million (Sh940 million), marking one of its largest deals in the lucrative corporate lending market.

TransCentury bets big on Civicon deals for rebound

Money Markets

Civicon site engineer Gaddafi Odhiambo (left) and TransCentury CEO Gachao Kiuna at GZ Industries Aluminium Cans Factory. PHOTO | FILE 

By JOHN GACHIRI, jgachiri@ke.nationmedia.com

In Summary

• Chief executive Gachao Kiuna told analysts at a conference call that the company will go for deals worth between $5 million (Sh473 million) and $50 million (Sh4.73 billion) through Civicon.
• Analysts, however, point out the future revenues for Civicon are not assured since oil and gas exploration firms, who are major clients for its engineering subsidiary, are cutting back on their budgets as a response to falling oil prices.

TransCentury to double share capital at NSE

Corporate News

An NSE employee monitors the electronic trading on board. PHOTO | FILE 

By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com

In Summary

• TransCentury will on May 29 seek shareholders’ approval to increase its authorised shares to 1.2 billion from the current 600 million units.
• This will create shares to be allotted to existing shareholders who will buy the extra stocks at a price yet to be determined.
• The move is meant to raise money for a 2011 Eurobond maturing in March 2016.

Investment firm TransCentury is set to double its authorised share capital in preparation for a rights issue whose proceeds will be used to a repay $80 million (Sh7.5 billion) convertible Eurobond it issued in 2011.

Calls for caution as Treasury set for Sh2.17trn Budget

Money Markets

Institute of Economic Affairs (IEA) CEO Kwame Owino speaks during the presentation of 2015/2016 Citizen's Alternative Budget at the Panafric Hotel in Nairobi on April 30, 2015. PHOTO | SALATON NJAU |   NATION MEDIA GROUP

By GEOFFREY IRUNGU, girungu@ke.nationmedia.com

In Summary

• There is concern that though public debt is currently sustainable, it is growing at a rapid pace at a time the economy has slowed down.
• The experts noted the increase in the county and national government expenditure by over Sh400 billion – or nearly a tenth of the GDP – in a single year was too big for a small economy. Total expenditure is expected to reach Sh1.74 trillion by the end of this financial year in June.
• Kwame Owino, the chief executive of the Institute of Economic Affairs (IEA), a policy think-tank says Kenya will be forced to turn to debt to finance the ever-rising expenditures.

Safaricom’s bid to limit users meets opposition

Corporate News

Safaricom CEO Bob Collymore. The firm has given its Karibu postpaid users until May 26 to clear the unused units. PHOTO | FILE 

By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com

In Summary

• News of Safaricom’s decision to limit use of bundles saw some users threaten to take the telecom operator to court for what they claimed is a violation of their rights.
• The main bone of contention for the more than 150,000 subscribers is that Safaricom is limiting use of bundles they paid for and should be allowed to consume at their own pace.
• Safaricom CEO Bob Collymore described the Karibu tariff as promotional, revealing that it has been loss-making since its launch.

Telecoms operator Safaricom’s attempt to have its post-paid tariff users use up their accumulated airtime, SMS credits and data in one month on Thursday met stiff opposition from consumers who complained that the move amounted to a breach of contract.

How four terrorists kept KDF special forces at bay for hours

Politics and policy

Interior secretary Joseph Nkaissery when he appeared before the House team in charge of security on April 30, 2015. PHOTO | DIANA NGILA 

By EDWIN MUTAI, emutai@ke.nationmedia.com

In Summary

• Interior secretary Joseph Nkaiserry tells MPs Garissa attackers were not defeated until Recce arrival.
• Mr Nkaissery revealed that the terrorists had secured strategic positions and engaged the Special Forces in a fierce exchange of gunfire for hours.

Kenya Defence Forces (KDF) Special Forces were kept at bay for hours by four terrorists who killed 147 people, among them 142 students of Garissa University College, Interior secretary Joseph Nkaissery told Parliament on Thursday.