Author: David Indeje

Kenya Electricity Generating Company PLC (KenGen) says its profit after tax surged to KSh18.3 billion for the year ended June 30, 2020, from KSh7.8 billion recorded a similar period in 2019. Kenya’s biggest electricity producer said its Profit Before Tax on the other hand grew by 8.3 per cent to KSh13.9 billion from KSh11.6 billion reported previous financial year. “We reported a 13.4 per cent growth in electricity revenue, mainly due to the full operationalization of the 165MW Olkaria V geothermal power plant in November 2019, which boosted geothermal production by 14 per cent,” the Managing Director and CEO, Rebecca…

Financial institutions have deferred and restructured loans worth Ksh 1.63 trillion, equivalent to 54.2% of the total banking sector loan book by the end of December, under the emergency measures to facilitate the borrowers in Covid-19 pandemic. The Central Bank of Kenya said the total banking sector loan book was Ksh 3.0 trillion by the end of December. Out of the restructured amounts, personal and household loans amounting to Ksh 333.0 billion (39.6 per cent of the gross loans to this sector) have had their repayment period extended.  For other sectors, a total of Ksh 1.29 trillion had been restructured…

The economy is expected to rebound strongly in 2021 The Central Bank of Kenya (CBK)  kept interest rates unchanged at 7.00 per cent. The regulator said policy measures that have been implemented since March 2020 were having the intended effect on the economy. This is the sixth time in a row that the  Central Bank Rate has been retained at 7 per cent. The Monetary Policy Committee (MPC) met Wednesday to review the impact of previous monetary policy measures and affirmed that they are being augmented by implementation of the announced fiscal measures in the FY2020/21 Budget. “The MPC concluded…

Kenya’s fiscal deficit could go up 9.0 per cent of Gross Domestic Product (GDP) equivalent to  Ksh 1,000.2 billion in the fiscal year 2020/21 from 7.8 per cent in the current fiscal year.  This may result in rising interest rates as it will need to borrow more to meet the shortfall. “To finance the fiscal deficit in the FY 2020/21, domestic borrowing is projected at Ksh 572.7 billion and foreign financing at Ksh 427.5 billion. In the medium term, debt is projected to remain sustainable,”  according to the draft 2021 budget policy statement. Treasury says it will focus on its…

The new Simchorwa borehole will benefit approximately 3,000 people from the county Over 3000 residents living in Lemotit region, Kipkelion West Constituency have been connected to clean water.  This follows the commissioning of the Simchorwa water project, which was constructed by the James Finlay Kenya as part of its sustainability agenda. Present during the commissioning and handover was  Mr Charles Keter, Cabinet Secretary  Ministry of Energy and representatives from Kericho County Government and the community commissioned. The water project will offer 16 cubic litres daily supply of water.  James Finlay Kenya is part of the Swire Group, a highly-diversified global…

Kenya’s Monetary Policy Committee (MPC) is unlikely to change the Central Bank Rate (CBR) in its first bi-monthly policy review on Wednesday, 27th January 2021. According to Kenyan market analysts, they expect a status quo on both rates and policy stance, now set at ‘accommodative’. In its last meeting held on 26th November 2020, the MPC maintained the CBR at 7% citing that the accommodative policy stance adopted in March had the intended effects on the economy. “The current macro and business environment fundamentals might constrain the transmission of further accommodative cuts, despite the need to stimulate economic growth. Therefore,…