Shilling slump and oil price rebound raises cost of fuel

Motorists took a big hit from Thursday’s monthly review of petroleum prices, which will see them pay Sh3.54 and Sh1.86 more per litre of super petrol and diesel respectively. Energy Regulatory Commission (ERC) announced that super petrol will retail at Sh92.89 up from Sh89.35 in Nairobi while diesel will cost Sh79.34 up from Sh77.48 per litre. The shilling has shed about six per cent to the dollar since January, raising the prospects of raising living costs in a country that largely depends on imports for its consumer and capital goods [...]

Tuskys new CEO sends 7 managers home in shake-up

Newly-appointed Tuskys Supermarkets CEO Daniel Githua has sent seven branch managers on early retirement as part of a nationwide management shake-up. Mr Githua has also shuffled 39 branch managers, transferring them to different outlets in a reorganisation that comes less than two weeks after he joined the retailer [...]

Companies hedge to tame risks of shilling volatility

Businesses are increasingly opting to hedge their earnings from the volatile Kenya shilling after it depreciated over six per cent from the beginning of the year. Industry observers say hedging of the currency risks became pronounced after the local unit hit Sh95 to the dollar nearly two weeks ago, as some importers panicked. Hedging by traders has contributed to the increased weakening of the local unit because booking forward contracts has only worsened the rush for dollars [...]

Low rents, longer leases pulling multinationals to Nairobi

Multinationals setting up in Africa prefer Nairobi because of longer commercial leases and low rents payable in either dollars or shillings, latest Knight Frank Africa report has shown. Rental leases in Kenya are five to six years, a fact Knight Frank said helps investors to plan ahead and focus on their business. Countries like Tanzania only offer leases that range from one to three years while Uganda and Nigerian contracts last two to five years. Industrial space continues to dominate but with growing demand for quality warehousing facilities which Knight Frank predicts might be met by developments such as Konza City, Tatu City and KenGen’s Industrial Park [...]

Sh7bn marketing plan unlikely to win tourists this year, says PwC

Kenya is this year unlikely to gain from the six-fold rise in tourism promotion budget of Sh7.1 billion as consultancy PricewaterhouseCoopers (PwC) forecasts a 2.8 per cent drop in arrivals. Kenya is launching a marketing offensive in Western capitals to woo tourists back to the palm-fringed beaches and sprawling game parks. The Sh7.1 billion marketing budget is an increase from the Sh1.1 billion for year ending June and comes after earnings fell 7.3 per cent last year [...]

Nyagah barred from interfering with Tatu City land

The High Court has stopped former Central Bank of Kenya governor Nahashon Nyagah from interfering with a land purchase agreement between Tatu City developers and real estate firm Daykio Plantations Limited [...]

Bank of India opens shop in Kisumu, Eldoret

Bank of India has opened two more branches in Kisumu and Eldoret to bring its total outlets in Kenya to seven as it seeks to increase its market share in the banking industry. Bank set to open two more branches in Nakuru and Thika next month. The bank also operates in Uganda, Tanzania, Zambia, Botswana and South Africa [...]

Safaricom cuts South Sudan call rate to Sh10

Safaricom has cut roaming charges for its subscribers travelling in South Sudan to Sh10 from Sh65 per minute, offering relief for traders and visitors to the neighboring country. Communications Authority of Kenya data indicates that Kenyans are now calling more within the East African region following the scrapping of taxes imposed on incoming voice calls by Rwandan and Ugandan governments [...]