Author: Muindi

The Central Bank of Kenya (CBK) has made significant changes to all Kenyan banknotes. Effective immediately, all denominations will feature the signatures of Governor Kamau Thugge and National Treasury Principal Secretary Chris Kiptoo. Additionally, the banknotes will display a new print year of 2024 and incorporate enhanced security features, including colour-shifting threads. The redesign affects all Kenyan banknotes, from the KSh50 to the KSh1,000 notes. However, the CBK has clarified that existing banknotes remain legal tender and will continue to circulate alongside the new designs. “The rest of the features remain the same as those of the series issued in…

Kenya’s inflation rate eased to 4.3% in July, down from 4.6% in June, according to data from the Kenya National Bureau of Statistics (KNBS). On a monthly basis, inflation was -0.2% from 0.4% in June. The decline was primarily driven by falling prices for food and fuel. Key food items such as tomatoes, wheat flour, onions, and maize flour saw significant price reductions. Additionally, a drop in electricity and kerosene prices contributed to a lower Housing, Water, Electricity, Gas, and Other Fuels index. However, a slight increase in gas prices tempered the overall decline. The transport sector also experienced a…

Kenya and Uganda have initiated formal discussions to extend the petroleum products pipeline from Eldoret to Kampala. This project is anticipated to significantly reduce the cost of overland fuel transportation to Uganda and beyond, thereby transforming the region’s fuel import landscape. The talks were commenced between Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, with Kenya’s Ministry of Energy officials, led by the State Department for Petroleum PS. Mohammed Liban, and toured Kenya Pipeline Company (KPC) headquarters. The infrastructure initiative involves Kenya constructing a multi-product oil pipeline from Eldoret to the Malaba border, while Uganda will build a connecting…

The Kenya Forest Service (KFS) has increased fees for timber transport permits, effective July 13, 2024. The cost of acquiring a single permit has surged from Ksh2,000 to Ksh25,570. The new fee structure includes a Ksh20,000 consignment fee, a 16% VAT on the consignment fee (Ksh3,200), a Ksh2,000 movement permit fee, a 16% VAT on the permit fee (Ksh320), and a Ksh50 eCitizen transaction fee. All payments must be made through the eCitizen platform. Additionally, KFS has imposed fees on charcoal transport: Ksh30 per bag, plus 16% VAT and a Ksh50 eCitizen fee. Non-wood forest products will also be subject…

Sanlam and Allianz have officially launched their joint venture, SanlamAllianz, in Ghana. This marks a significant step in creating a leading pan-African non-banking financial services entity with operations in 27 countries, including Kenya. The partnership, combining Sanlam’s extensive African footprint with Allianz’s global insurance expertise, aims to expand access to savings, investment, and insurance products across the continent. The joint venture, valued at over R35 billion (KES 251.5 billion), brings together the majority of both companies’ African operations. By pooling resources and capabilities, SanlamAllianz seeks to drive growth and innovation in the insurance sector while addressing the specific needs of…

Safaricom PLC announced a total dividend of KES 1.20 per share for the financial year ended March 31, 2024, amounting to KES 48.08 billion. This follows a robust performance marked by record earnings of over USD1 billion in Kenya. Despite economic challenges, Safaricom demonstrated resilience, delivering strong financial results and strategic execution. Safaricom PLC Income Statement Item (All figures in Bns) FY’2023 FY’2024 y/y change Total Revenue 310.9 349.4 12.4% Operating costs (171.0) (186.2) 8.8% EBITDA 139.9 163.3 16.8% Depreciation & Amortization (54.9) (82.9) 51.2% Operating Profit 85.0 80.3 (5.5%) Net Finance Costs (7.1) (16.6) 134.8% Profit Before Tax 88.3…