Overvalued shilling may hit 110 to the dollar by year end

Economists says Kenya’s real effective exchange rate (REER) is 20 per cent overvalued and forecasted that the currency is headed for 110 units to the dollar by the end of the year. The REER takes into account the value of trade between countries and their inflation levels.The position is similar to that taken by other experts, including those at the World Bank office in Nairobi, who have said that the unit had accumulated overvaluation of 36 per cent between 2000 and 2013…[...]

Siginon gets go-ahead to trade in tea after ban

The government has lifted a ban imposed on logistics firm Siginon stopping it from trading in tea.Agriculture, Fisheries and Food Authority (Affa) director general Alfred Busolo said Siginon has been given back its licence.The lifting of the ban, however, came with conditions as the firm is required to file a report with the tea directorate every month…[...]

Local banks lend KPC Sh35bn for Mombasa-Nairobi pipeline

Kenya Pipeline Corporation (KPC) has secured a Sh35 billion loan from a consortium of local banks to set up a new 450 kilometre pipeline from Mombasa to Nairobi.Co-operative Bank, CfCStanbic Bank, Citibank (Kenya), Commercial Bank of Africa, Standard Chartered Bank and Rand Merchant Bank have jointly lent the State-owned corporation Sh5.8 billion each.The new investment seeks to help KPC meet rising demand for fuel in the market and complement the existing line and eventually replace it…[...]

Nakumatt gets Sh500m loan for Westgate

Nakumatt Supermarkets has borrowed Sh500 million from local banks to finance the re-opening of its Westgate Shopping Mall outlet in Nairobi that was shut down nearly two years ago after a terrorist attack. Atul Shah, the managing director of the regional retail chain, said Tuesday ahead of Saturday’s re-opening that the loan was meant to cover the cost of refurbishment of the branch which would have strained its cash flows if internally funded…[...]

New Sierra Leone Ebola cases delay KQ return to lucrative West Africa route

The resurgence of Ebola cases in Sierra Leone has cast doubts on the resumption of Kenya Airways’ (KQ) flights to the West African country in the near-term.At least 14 new cases of the deadly hemorrhagic fever have been reported in the past two weeks including in the capital, Freetown. The new cases come two months after KQ resumed flights to Liberia, a country bordering Sierra Leone, which was declared Ebola-free in May…[...]

KAA saga: Sh38m import duty on five buses was not paid

The Kenya Revenue Authority (KRA) on Tuesday told a parliamentary committee that it did not collect taxes on the buses after it was informed that they were beneficiaries of exemptions granted through the East African Customs Management Act. Julius Musyoki, acting commissioner for the customs department, said KRA relied on a letter written by Relief and Mission Logistics, the company that won an eight-year concession to the bus service at the JKIA, to award the tax exemption…[...]

Boost for startups as venture capital firm Nest opens Nairobi office

Kenyan and African tech startups have a new opportunity to acquire financing with the opening of a Nairobi office by Hong Kong-based venture capital firm Nest. Nest is looking for startups on the continent which are ready for additional funding for expansion and in particular those that offer services to the mass or the lower end of the market.The Nairobi office, which was opened on Tuesday, is the venture capital firm’s first office in Africa. Other offices are in London, San Francisco in the US and the Hong Kong headquarters…[...]

Tanzania may cancel EABL, Serengeti deal

Tanzania authorities have invited submissions from interested parties who feel that its decision to revoke the East African Breweries Ltd (EABL)-Serengeti merger could hurt their own interests. In a public notice appearing in local dailies yesterday, the Fair Competition Commission of Tanzania says those affected can also request for an opportunity to submit their arguments in a formal oral hearing…[...]