Use of cheques rises 10pc as clearance time falls to one day

The clearance time for cheques has dropped to one day from three days since August 2013, due to an automated system allowing processing based on electronic images. This system has also eliminated physical movement of cheques to paying banks and reduced cheque frauds, leading to a 10 percent rise in the use of cheques.  Use of Electronic Funds Transfer (EFT), however, grew faster than that of cheques over the one year period while foreign currency-denominated cheque clearances had a mixed performance in the year, with the dollar being the dominant currency [...]

Battery makers bet on law banning lead exports

Local battery manufacturers, whose industry has been affected by lack of raw materials, are banking on a new law, the Scrap Metals Act that bans the export of lead metal, to turn around their fortunes. The law forbids the export of scrap automotive batteries, lead scrap, crude or semi refined lead. Some of the players in this industry, such as Associated Battery Manufacturers (ABM), the maker of Chloride Exide batteries, are hoping that their worries on supplies of raw materials are over [...]

CfC Bank puts Naivasha flower grower Karuturi up for sale

Karuturi Ltd, one of the world’s top growers of roses that was put under receivership early last year due to non-payment of a Sh383 million loan borrowed from CfC Stanbic, has been put for sale by PSJ Advisory Group, the banks appointed receiver manager. The flower firm also has accrued charges by KRA of Sh962 million for tax evasion, and debts to suppliers such as Pack Industries Limited of undisclosed value. The plantation’s workers trade union has also voiced their concern over employees’ salary arrears following the announcement. Interested buyers for the Naivasha-based flower firm have been given until the end of February to submit bids. Listed assets include more than 126 hectares of flower under greenhouse cover, eight hectares of open air rose cultivation and housing units for more than 2,000 workers [...]

Kenya told to rein in debt as growth seen at 6pc this year

The Kenyan economy is expected to grow by 6 percent due to lower fuel prices that may lead to a drop in general prices and dividend from investing in infrastructure projects. Economists and analysts at Citi and Fitch warn that the country needs to reduce the amount of borrowing and only source funds when they can be used immediately. Kenya which has been running on twin deficits is still struggling to attain fiscal consolidation. Kenya’s debt stood at Sh2.372 trillion or 51.7 per cent of GDP as at August 2014 but this later fell to 50 per cent after the rebasing of the economy in September. The country’s rating by Fitch has indicated a ‘B+’ rating with a stable outlook [...]

Kenya named Africa’s best investment hub

Kenya has been named as the best African emerging economy for investing in because of fast-tracked infrastructure development, a stable macroeconomic and political environment and reduced threat of economic and political turmoil which has affected other large African economies, for example, Nigeria and South Africa. The growth of the service sector in the country has been attracting inflows as compared to other large African economies which rely on commodities, for instance, oil, gas, metals and minerals. Others countries ranked as best emerging economies, by Ian Bremmer, president of global political risk research and consulting firm Eurasia Group, while writing in the February issue of Fortune magazine, are India, Poland, Malaysia, Mexico, Indonesia, and Colombia. He indicates that these countries are more attractive in the eyes of investors since the more popular emerging economy investment destinations such as Brazil, China, and Russia are either in slowdown or facing recession [...]