1. Alarm as loan defaults rise by Sh4bn

steep rise in the cost of loans that started at the end of 2011 has left many borrowers incapable of servicing their debts, pushing up the level of default across the banking industry.

The volume of non-performing loans (NPLs) rose by a whopping Sh4 billion — or 7.1 per cent — to Sh57.5 billion in the three months to June as the burden of servicing loans became too heavy for more borrowers, according to the latest Central Bank of Kenya data.- Business Daily

2. Sacked worker stops Kenol takeover deal-

Implementation of the take-over agreement between Kenol Kobil and Swiss company Puma Energy has been suspended.

A court on Thursday stopped Kenol Kobil from implementing the agreement after Mr Joseph Kamau Thuo, who the company sacked, filed a claim.

Industrial Court judge Monica Mbaru granted an interim injunction, which also stops Kenol Kobil and Puma energy from entering into any similar arrangement that could remove control the Kenyan company from its current shareholders and directors, to the detriment of Mr Thuo’s interests.- Daily Nation

3. Court lifts order barring Kenya Airways job cuts

The High Court has lifted a temporary order on national carrier, Kenya Airways, that had stopped the airline from cutting jobs as part of a major cost reduction.

The airline, 26.7 per cent-owned by Air France KLM, said this month it would shed staff through voluntary retirement, redundancies and outsourcing of non-core roles.

But the Aviation and Allied Workers Union, which represents 3,800 staff at the airline, challenged the cuts in court and secured restraining orders against the company.- The Standard

 4. Proposed law allows President to appoint CBK chair

The president will be the appointing authority of the new chairperson of the Central Bank of Kenya board if Parliament approves amendments to laws governing the banking sector regulator.

The new law will see the bank’s governor lose the chairmanship of the Central Bank of Kenya (CBK) in what is expected to boost corporate governance and reduce instances where the governor chaired the board and assessed his own performance.-

According to an amendment to the Central Bank of Kenya Act before Parliament, the new office of the chairman will be funded by the taxpayer.- Daily Nation

5.  China the third largest lender in Kenyan market

China has leaped to the position of Kenya’s third largest lender after Japan and France, underlining the growing influence of the rising Asian giant on the economy.

Fresh data by the Treasury shows China received Sh1.05 billion from the Treasury last year in interest and principal loan repayments, making it the third biggest recipient.

Japan, the biggest lender, got Sh6.44 billion while France was third with Sh2.59 billion, according to the latest Quarterly Economic and Budgetary Review by the Treasury.- Business Daily

6. Softa diversifies into fruit juices market

Beverage maker Softa Bottling Company will from next month start processing fruit juices in what is expected to up competition in the ready-to-drink segment.

The company, owned by businessman Peter Kuguru, has begun the search for wholesalers and distributors for its juice product dubbed Asili—which will be produced in partnership with Makuyu factory.

Under the pact, the factory located near Kakuzi on the Nairobi-Nyeri highway, will receive the fruit from farmers, crush it and then deliver the product to Softa’s Nairobi plant for processing and packaging.- Business Daily

7. NSSF lines up more benefits under new laws

The National Social Security Fund (NSSF) has recently been engaging key stakeholders, including the Central Organisation of Trade Unions (Cotu) and the Federation of Kenya Employers (FKE) to seek support for its new Bill.

Among other changes, employees, if the National Social Security Pension Trust Bill 2012 goes through, will have to pay a higher monthly contribution from the current Sh200.- Business Daily

8. Multichoice set to increase DStv channels

Kenyan DStv subscribers will enjoy eight new channels beginning October as the brand fights to retain leadership in the local pay television market share.

Speaking on Wednesday night, Multichoice Kenya general manager Danny Muchira said the move is an attempt to settle the ever growing customers’ appetite for more content and beat rising competition from other players in the sector.- Daily Nation