1. Contract of Oil Exploration Firms Cancelled Over Outrageous Terms
The government has terminated the contract of Norwegian Oil company Statoil, barring it from further exploration in the country after it faulted conditions set by the Energy ministry.
The conditions set by the company were outrageous and not feasible, permanent secretary Patrick Nyoike said on Monday after officially opening a three-day forum to discuss the viability of nuclear energy in Kenya.
2. Central Bank Injects 9 Million Coins to Ease Shortage
The Central Bank (CBK) has injected nine million pieces of coins into circulation to ease the current shortage, which has seen retailers force consumers to accept sweets and matchboxes in lieu of change.
CBK, which controls the supply of currency in the economy, said the extra coins were released last month, pushing the total volume in circulation to 1.29 billion pieces. “The Central Bank would like to clarify and assure the public that the country has adequate stocks of currency coins and continues to issue them pursuant to the CBK Act,” said governor Njuguna Ndung’u in a statement.
3. Kenya Seeks to Legalise Charcoal Trade
The government now wants to legalise the charcoal business in an attempt to beat illegal charcoal burning which is largely to blame for the loss of the country’s forest cover. Kenya Forest Service (KFS) Director David Mbugua said on Monday that the move would ensure that the trade was properly regulated to guarantee that the country’s forest cover was sustained.
4. Kenya Only using 6 Percent of Internet Capacity
Kenya’s total bandwidth consumption is only a small fraction of the country’s total internet capacity. This is according to Joseph Mucheru, Google SSA Ambassador and Kenya Country Lead, who sees public internet hotspots as a solution to the low uptake of internet.
Mucheru said Kenya is using 6 percent of the national Internet capacity of 8400G.
5. CBR May Go Down After Inflation Hits a 2 Year Low
The Central Bank may lower its benchmark interest rate for a third consecutive meeting as inflation at a two-year low widens the room for policies to stimulate growth.
The Central Bank of Kenya, led by Governor Njuguna Ndung’u, will probably reduce its benchmark interest rate by 2 percentage points to 11 percent, according to the median estimate of three economists surveyed by Bloomberg News. The central bank is expected to publish its decision tomorrow via e-mail after 3 p.m.
6. India Seeks Direct Flight to Nairobi
Indian airlines will return to Nairobi, if talks between Kenya and their government succeed. At a press briefing last week, Indian External Affairs minister Salman Khurshid said his government was actively trying to re-establish a direct air link to Nairobi.
At the moment, Kenya Airways flies directly from Nairobi to New Delhi. However, no Indian airline flies directly to Kenya’s capital since Air India stopped in 2010.
7. Banks See no Change in Bad Loans
COMMERCIAL banks do not expect any major change in the stock on non performing loans in the months of October, November and December, a new survey among bankers show.
The just released Central Bank of Kenya credit officer survey for the quarter ended September 2012 attributes this positive outlook to the slow and marginal downward adjustment of lending rates by commercial banks. This is despite the reduction by CBK of the Central Bank Rate from 18 per cent in June 2012 to 13 per cent in September 2012.
8. Why the State is Terribly Wrong on the New Mining Laws
“That is not the way to go. It is going to kill any interest in the mineral sector because it is not practical. Mining starts with a high-risk operation of exploration” said Geoffrey Mwau in a Reuters Interview on Friday with Duncan Miriri.
The Star Columnist Alu Khan Satchu explains why he thinks the new mining laws will cripple the mining industry.