Why the IMF has taken away Kenya’s Emergency loan and why it matters

Bloomberg has reported that the International Monetary Fund withdrew Kenya’s access to a $1.5 billion standby loan in June. The newswire quoted IMF country representative Jan Mikkelsen who said that adjustments that were needed to meet the targets were “insufficient and follow-up discussions on the review were postponed due to …

South Africa port operator eyes Lamu port

South Africa’s national port and freight-rail operator is hunting for deals across the continent, from Senegal to Zimbabwe. Bloomberg reported that in Kenya, the company will seek to operate the first three berths at the port of Lamu, which is being built by a Chinese company. “Transnet SOC Ltd. has …

Local banks feel the pinch of holding too much state debt

Local banks feel the pinch of holding too much state debt. The Kenyan government’s junk ratings has taken a shine off local banks which carry exceptionally huge Treasury bills and bonds. Moody’s Investors Service has downgraded three Kenyan banks – KCB Group, Equity and Co-operative following the weakening of the …

KenGen to switch on 158MW plant next year

Power consumers are set for better times following an announcement by the leading energy generator, Kenya Electricity Generating Company (KenGen), that the 158MW Olkaria V geothermal power plant will be operational next year as scheduled. The power plant is part of KenGen’s ambitious green energy development agenda aimed at delivering …

Ascent buys Limuru auto firm

Private Equity fund, Ascent Rift Valley Fund (ARVF) signed a deal to acquire Limuru based Auto Springs East Africa to angle for growing assembly market. Auto springs, the makers of spare parts industry including a variety of wiring harness, leaf springs, nuts, bolts, and washers to fit cars, trucks, and …

Moodys ratings sinks Kenyans junk bond ratings

Kenya foreign debt has been rated junk, non-investment grade speculative 11 ranks below the premium triple-A ratings given to America. Moodys downgraded Kenya’s overall ratings to B2 from B1, local debts from B2 to B3 and foreign loans from Ba2 to Ba3. Save for pricing, credit ratings have however diminished …

African Academy of Sciences awards Sh1.1billion in grants to research in human genes

The African Academy of Sciences is awarding Sh1.1billion ($11 million) to four leading African researchers for research to accelerate the use of genomics to understand how the environment and human genes influence the susceptibility of Africans to certain diseases and their response to treatment. The grants are being awarded to …

Execution Point Limited sets to reap big from online currency license

The sole trader allowed to operate accounts which Kenyans can use to bet one currency against the other is set to reap a major windfall. Currently, the currency market is witnessing massive volatility, with the dollar losing ground against most currencies including the shilling. It is estimated that the Kenyan …

OLX: Reality of an online market that is too small for too many players

The underbelly of e-commerce platform has hit OLX operations in Africa which is forced to fire workers and close offices in Kenya and Nigeria to stay afloat. A notice of termination to staff has been issued with exits expected to begin in March, followed by for the management team in …