Kenya Airways up 41pc on positive investor outlook

The share price of KQ has risen to Sh10.95 per share — a six month high — on account of positive investor sentiment due to falling fuel prices and hope of an end to the Ebola crisis that robbed the airline of key West African routes last year. This signifies a 41 per cent gain by the airline since touching an all-time low of Sh7.75 mid-November buoyed by market fundamentals [...]

Treasury faces fresh test in rail suppliers’ VAT refund claims

Local suppliers of the Standard Gauge Railway (SGR) have joined the list of claimants of VAT refunds from KRA. The taxman will collect the VAT from suppliers, who will then claim refund from the Treasury as Kenya committed to waive taxes arising from the project. This may bring delays in procurement due to poor funding as these suppliers await the VAT refunds from the Treasury, which has adopted a first-in first-out payment policy on such matters. VAT on standard gauge railway supplies accrues because the financing deal was signed after the coming into effect of the VAT Act 2013, under which aid funded projects were removed from the tax exempt list [...]

TransUnion credit bureau sets up new scoring system

TransUnion, formerly CRB Africa, has stated that is has come up with a new credit score that will reduce the incidence of borrowers being blacklisted or getting low scores for having some outstanding loans or bills which are not large enough to increase the customer’s risk profile This move is aimed at reducing the incidence of borrowers being blacklisted or getting low scores for having some outstanding loans or bills which are not large enough to increase the customer’s risk profile [...]

KURA picks Deloitte advisers for Nyali Pay Bridge

The advisor is expected to provide project assistance, evaluate bidders and market the bridge to investors. Deloitte is also expected to come up with the feasibility study on the toll bridge estimated to cost around $100 million (Sh9.1 billion). The project will be financed through a public-private partnership (PPP) arrangement. The bridge links Mombasa Island to the northern mainland. Kenya Urban Roads Authority (KURA) is also looking for a consultant to develop a Mombasa transport master plan to guide infrastructure development in Kenya’s second largest city [...]

IMF says Kenyan banks exposed to bad loans danger

The International Monetary Fund (IMF) has stated that although Kenyan banks are profitable and well-capitalized, they are failing to adequately provide for bad loans, an issue which is raising eyebrows. Recent data from the Central Bank of Kenya (CBK) shows that non-performing loans rose by 30.9 per cent last year to Sh107.1 billion in December — the highest in six years. This could be attributed to the persistent high interest rates on one hand with static incomes on the other hand in the economy, leading to the increased defaults [...]

Lamu coal plant firms pledge 1,000 new jobs for locals

A consortium that brings together Gulf Energy and Centum Investment among others, called Amu Power Company, has announced that locals would be given priority when allocating jobs, even though the jobs will be filled on merit. This is an effort to woo Lamu leadership amid claims by civil society activists that the coal project would damage the fragile ecosystem of the region. The coal power plant is to be located at Kwasafi in Hindi Bay of Lamu and is expected to contribute 960 megawatts to the national grid [...]