Author: Muindi

The annual inflation rate for consumer prices increased to 9.2 per cent in February, up from 9 per cent in January, according to figures compiled by the Kenya National Bureau of Statistics (KNBS). “The rise in inflation was largely due to an increase in prices of commodities under food and non-alcoholic beverages (13.3 per cent); housing, water, electricity, gas and other fuels (7.6 per cent); and transport (12.9 per cent) between February 2022 and February 2023,” said KNBS on Tuesday. The Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed…

Global rating agency Standard and Poor (S&P) has revised Kenya’s outlook on debt service capacity from stable to negative. “Constrained external financing led to Kenya suspending plans to tap international capital markets in 2022, prompting the country to draw more extensively on its forex reserves to meet its external debt repayments,” S&P said in its ratings update. “Our base-case scenario assumes that Kenya will meet its financing requirements for fiscal 2023 (year ending June 30), but risks remain given relatively high foreign debt service obligations in fiscal 2024 (including a $2 billion Eurobond maturing in June 2024) against a backdrop…

Invesco Assurance Company has been placed under liquidation by the Insurance Regulatory Authority (IRA) “with immediate effect” following a ruling by the High Court of Kenya. “Invesco Assurance Company has been placed under liquidation through a decree of the court dated February 6, 2023, issued in the High Court at Nairobi in Insolvency Petition No. E155 of 2019,” said Godfrey Kiptum, the Insurance Regulatory Authority (IRA) commissioner of insurance and chief executive. “Following this court decree, Invesco Assurance Company is stopped from issuing insurance policies and therefore not authorised to enter into any new contracts of insurance.” In 2019, Kinyanjui…

MGM Muthu Hotels, one of Europe’s leading hospitality chains, has acquired four hotels under the umbrella of the Sun Africa Hotel Group of companies in Kenya. MGM Muthu will oversee the operations of the Sovereign Suites Hotel and Spa in Limuru, Lake Naivasha Country Club, Keekorok Lodge in Masai Mara, and Nyali Beach Hotel and Spa in Mombasa as a result of the acquisition. The announcement was made during an event at the Sovereign Suites on February 23, which was attended by MGM Hotels Group director of marketing Adhikar Vaish, country head Shailender Singh, Sovereign Suites general manager Petterson Njunguna,…

Norfund, the Norwegian government’s investment fund, has signed a USD14 million (KSh1.7 billion) financing agreement with Hela Apparel Holdings PLC to support its operations in East Africa. Hela Kenya, established in 2016, is the largest manufacturing facility within the Hela Group and employs over 4,000 people. The facility is also one of the largest in Kenya, producing approximately 20% of the country’s total apparel exports. https://twitter.com/hela_apparel/status/1630170975487643649?s=20 “Our expansion to Africa has been a rewarding venture, and we continue to see many opportunities within the region for further development,” said A.R Rasiah, chairman of Hela Apparel Holdings. “Given the increasingly unpredictable…

German’s Boehringer Ingelheim, a leading research-driven biopharmaceutical company, has opened its scientific office in Nairobi, Kenya. The new office will serve as the company’s headquarters for the Sub-Saharan Africa region and is poised to expand the company’s global presence in the area. “For over two decades, Boehringer Ingelheim has been committed to improving human and animal health in Africa,” Mohammed Tawil, Regional Managing Director and Head of Human Pharma at Boehringer Ingelheim India, the Middle East, Turkey, and Africa (‘IMETA’) said. “Our presence here will enable us to better understand the needs of the local communities and work in partnership…