Airtel Kenya permit expired, operating under Essar licence
Airtel Kenya is operating under the licence previously held by Essar, which it bought out last year, as its permit which expired in February is yet to be renewed. The telecommunications firm had until this February to pay Sh2.3 billion for a 10 year-licence following the expiry of its initial permit that was issued in 2000. Airtel had paid a $55 million (Sh4.7 billion) fee for its first 15-year licence…[…]
Safaricom, Vodafone strike deal on M-Pesa licence fees
Safaricom executives have struck a deal with Vodafone, the telecom’s UK parent company, to slash the multi-billion-shilling licence fees the M-Pesa money transfer platform attracts. One of Vodafone’s subsidiaries owns the intellectual property rights on M-Pesa, and earns between 10 and 11 per cent of the revenues generated by the platform in a deal entered into in 2007, which capped the fee at 25 per cent. Bob Collymore told The Standard that the negotiated deal would be presented to the Safaricom board of directors for consideration…[…]
Shell sues City Hall in land row with ex-councillor
Oil marketer Vivo Energy, which trades in Kenya as Shell, has accused City Hall of colluding with a former councillor to defraud it of a one-acre piece of land along Ngong Road valued at Sh180 million. Vivo has moved to court in a bid to stop City Hall and Red Kaka, a firm owned by former Woodley Ward representative Peter Kamau Nyutu, from interfering with its ownership of the land…[…]
Oil explorer Erin secures contract extension
Erin Energy, an oil exploration firm with interests in Lamu County, has secured contract extension from the government giving it enough time to drill a well by the end of 2017. The American company was supposed to finish the first phase of work on two Lamu onshore blocks by June but requested the Energy ministry to give it a two-year extension. Erin had earlier said it would take another partner on board, so as to complete activities on its onshore blocks…[…]
Turf wars escalate as regulator plans to split Kenya Power to lower electricity costs
The energy regulator has set the stage for the splitting of Kenya Power one more time in a move calculated to push expensive power generators off the national grid. The development is being interpreted as a fresh attempt to reduce the influence that Kenya Power has on the energy sector. The Energy Regulatory Commission (ERC) wants a new entity established to ensure only the cheapest energy available in the market ends up on distribution lines…[…]
Kenya to go ahead with nuclear power plan
Kenya will continue with its push towards harnessing nuclear energy as an alternative to geothermal and hydropower to ensure future security and growth, the Ministry of Energy has said. Energy Principal Secretary Joseph Njoroge on Monday reaffirmed the country would set up a series of nuclear power plants, each with a capacity to generate 1,000 MW from 2023 to meet Kenya’s needs beyond 2030 when it looks to industrialise…[…]
Imperial Bank to pay stiff interest on its bond issue
Third-tier Imperial Bank will pay a stiff 15 per cent interest on its Sh2 billion bond as it seeks to raise cash to shore up capital to meet statutory ratios and grow business. The bank associated with the wealthy Popat Family has seen its ratio of total capital to total assets constrained because of the new rules that increased the statutory requirement to 14.5 per cent from January this year…[…]
Kestrel Capital and Rencap grow profit
Kestrel Capital and Renaissance Capital (Rencap) grew their half-year profits banking on increased brokerage commissions and exchange gains respectively, even as stockbrokers complained of capital gains tax (CGT) hitting commissions. Kestrel bucked the trend among several stockbrokers who have so far released first half results to grow the brokerage commission…[…]
Treasury sweetens sugar mills sale with Sh33bn debt write off
Plans are underway to write off Sh33 billion in debt owed by five sugar companies to make them attractive to investors. Chemelil, Miwani, Muhoroni, Sony and Nzoia Sugar companies owe the government a cumulative Sh59 billion accrued over years of mismanagement that have brought the mills to their knees…[…]