Centum explores Sh8bn bond option in expansion plan

Centum Investments is exploring the possibility of raising an estimated Sh7.5 billion from the bond market to fund its operations in various sectors of the economy. The funds are to finance Centum's ambitious strategic plan that will focus on investments in the education, health, energy, financial services, fast moving consumer goods (FMCG), ICT and real estate sectors [...]

Treasury warns counties against investment deals

Counties have been warned not to enter into partnerships with investors for projects before consulting with the national government. The Treasury said some of the devolved units were rushing into signing long-term agreements with investors who approached them with business proposals without subjecting them to competitive bidding [...]

Central Bank ‘unlikely to lower policy lending rate this year’

The Central Bank of Kenya (CBK) is unlikely to lower the policy lending rate this year even as inflation remains on the low as decision makers will be keeping an eye on the expected increase in US interest rates. Commercial banks have been under pressure to bring down the interest rate. The Central Bank Rate has been held steady at 8.5 per cent mid-2013 [...]

CBK to get powerful chairman raising risk of turf wars

The position, which was advertised in the local Press, brings to fruition long running efforts to have the CBK board take over some of the governor’s wide influence on the economy. Competitively recruiting a chairman, who does not have security of tenure, has the effect of raising his stature at the central bank by placing him nearly at par with the governor of the same institution, and could usher in a period of unprecedented turbulence in the key economic policy organ [...]

DTB profit hits Sh5.7 billion on growth from regional outlets

Diamond Trust Bank (DTB) has announced a 9.6 per cent increase in after tax profit boosted by strong performance of its regional operations. The group results have benefited from the continuing growth of share of results from DTB’s subsidiaries in Tanzania, Uganda and Burundi. The lender, majority-owned by the Aga Khan Fund for Economic Development (AkFED), said it was targeting new operations in the Democratic Republic of Congo, Madagascar and Rwanda [...]

Flame Tree Group acquires spices maker Chirag Kenya

Nairobi Securities Exchange-listed Flame Tree Group has acquired four brands and 60 employees of a snacks and spices manufacturer, Chirag Kenya, in a bid to grow its revenue base and get a bigger share of the breakfast cereals market. The four brands include Natures Own, Chigs potato crisps, Honeycomb biscuits and Gonuts. The company did not disclose the acquisition cost, but said the deal was financed through internal cash reserves [...]

Jambojet starts Lamu, Malindi, Ukunda flights

Kenya Airways’ budget airline Jambojet will next week introduce three new routes on its local destinations. The airline will now fly to Lamu, Malindi and Ukunda from the Jomo Kenyatta International Airport, breathing new life to the hard hit tourism sector in the coast [...]

Weeks of drought in Kenya drive down tea output

A drought in recent weeks in Kenya is driving down tea output and processing factories are receiving fewer deliveries from fields each week. All their growing areas had experienced below-average rains in January and February. According to Kenya Tea Development Agency (KTDA), there will be a major shortage of tea in the coming months if the adverse weather conditions continue [...]