Kenya Ports Authority (KPA) says Lamu Port needs Sh 3b to unlock construction stalemate
The Lamu Port project requires an additional Sh 3 billion to ensure construction proceeds to completion. The project is already running behind schedule by two years.
Kenya Ports Authority (KPA) Board Chairman Marsden Madoka, who was speaking during the board’s visit to the site of the port, acknowledged that delays in paying the project’s Chinese contractor had slowed progress. The Government in 2013 awarded a Sh48.6 billion tender to Chinese Communication Construction Company to build four berths at the port in 45 months’ time. Mr Madoka, however, expressed optimism that the Government would provide the funding required to jump start the project. “The Lamu Port project is a Sh 160.8 billion investment that is so far two per cent complete. Most of the work has been on site preparation,” he said. He said the board’s site visit had illustrated the importance of the project, in a move to actualize the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor.

August inflation eases, offering Kenya’s economy much-needed kick

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The Kenya National Bureau of Statistics (KNBS) says overall inflation rate slowed down to 5.84 per cent in August, down from 6.62 per cent a month earlier. This now becomes the lowest inflation since February. The lowest inflation this year was recorded in January where the cost of living stood at 5.61 per cent
This was mainly due to favourable weather conditions, which prevailed in recent months and the main reason for decreases in prices of several food items
Read more at: http://www.standardmedia.co.ke/business/article/2000174881/august-inflation-eases-offering-economy-much-needed-kick

Safaricom injects Sh14M seed capital for young entrepreneurs

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Safaricom foundation has partnered with Junior Achievement Kenya and ‘hand in hand’ . Eastern Africa to empower the youth with entrepreneurial skils and seed capital to start their businesses. Safaricom foundation has set aside 14 million shillings towards a revolving fund those with no access to micro credit as a pilot in seven counties for a period of one year.

Flower exports rise by 12 per cent

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Kenya’s cut flower exports rose by 11.7 per cent during the first quarter of this year to 136,601 tonnes. This was a remarkable growth for the sector at nine per cent in volumes and 18 per cent in value compared with the same period last year. Vegetable exports, however, declined by 3.3 per cent from 16,600 tonnes to 16,1000 tonnes during the period under review. The agriculture, forestry and fishing sector on the other hand, expanded by 4.4 per cent compared with 2.2 per cent last year. This growth was reflected in the increased use of agricultural inputs during the quarter.

According to Kenya National Bureau of Statistics (Knbs), the country’s horticultural sector earned Sh100.8 billion last year, a six per cent growth in comparison with Sh94.7 billion earned in 2013. Kenya remains one of the top three exporters of cut flowers in the world. The major markets are the EU, America, Australia, Russia, and Japan. Ngige said increased demand for fertiliser, a key input for agriculture sector, was notable as reflected by its import which grew by 18.4 per cent from 224,000 metric tonnes in first quarter 2014 to 265,9000 metric tonnes in the first quarter of this year.

Kenya’s first oil export expected in October 2022

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Kenya’s push to start oil production by 2017 will be delayed by at least five years going by the detailed design and construction timeline for the proposed crude oil pipeline connecting Uganda and local oil fields to Lamu. The Toyota Tsusho design released yesterday shows that the flow of the first oil is expected in October 2022 at the earliest. This will come after the commissioning of the oil pipeline in the last quarter of 2020.

Barclays unveils Sh30bn credit line for SMEs

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Small and medium enterprises would soon have easier access to credit as more banks pledge financing commitments to the business segment.
Barclays Bank of Kenya has stepped in with a Sh30 billion loans commitment to SMEs. Barclays Managing Director Jeremy Awori said the bank would continue to support the sector as part of its plan to help in accelerating economic growth and providing market-specific products

Kenya’s development efforts lead to improved World Bank rating

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Kenya is among five countries in Africa that have made progress in supporting development and poverty reduction in 2014.According to a World Bank report released last week, Kenya scored above the African average of 3.2 in the latest Country Policy and Institutional Assessment (CPIA).
The Government’s effort to enhance economic growth by initiating development projects, and its implementation of sound strategies to reduce poverty levels has helped boost its rating.
World Bank’s Africa Region Acting Chief Economist Punam Chuhan-Pole, who also authored the report, said the CPIA analysis rates the performance and challenges of poor countries.
The survey found that 26 per cent of governments and institutions in made progress in supporting development and poverty reduction last year, with 10 countries seeing an improvement in their overall CPIA score.

Kenya gets Sh50bn World Bank loan for roads

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Kenya has signed a Sh50 billion infrastructure loan with World Bank to fund part of the Eastern Africa Regional Transport, Trade and Development Facilitation Project.

National Treasury Cabinet secretary Henry Rotich said the funds will be used to rehabilitation the 287 kilometere Nakodok- Loichangamatak that traverses Trans Nzoia, West Pokot and Turkana counties.

The government will also develop a 40 kilometre section between Loichangamatak and Lokichar (Turkana County) at a cost of Sh17.6 billion.

– See more at: http://www.the-star.co.ke/news/kenya-gets-sh50bn-world-bank-loan-roads#sthash.hPL6YNMf.dpuf

Bad weather hurt milk processors

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Consupmtion of processed milk has reduced significantly since the beginning of 2015 due to what processors attribute to unfavourable weather.

The Kenya National Bureau of Statistics data sourced from the Kenya Dairy Board shows January, February, March and April 2015 recorded milk intakes was 47.3, 35.7, 36.8 and 30.4 million litres, respectively.

Milk consumption stood at 54, 46.6, 49.3, and 45 million litres in January, February, March and April last year.

– See more at: http://www.the-star.co.ke/news/bad-weather-hurt-milk-processors-statistics#sthash.3iIDZK38.dpuf

Growth in plastic card payments slows down as Kenyans opt for mobile money

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Plastic card payments in the first four months of the year rose only marginally relative to the same period last year, but remained well below the high achieved in the same period in 2013. The amount settled through the cards was just 0.7 per cent higher at Sh427.6 billion in the period compared to Sh424.8 billion in the same period last year, data from the Central Bank of Kenya (CBK) shows.

Analysts attribute the fall in the value of card payments to the increased popularity of mobile money platforms such as Safaricom’s  M-Pesa, and Airtel Money.

Equity steps up competition for mobile money customers with cheaper transfer service

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Equity Bank has stepped up competition for mobile money customers by making it free for its subscribers to send money to Airtel subscribers and within its network while capping fees charged on transfers to other banks at Sh200. Users of the new Equitel service will send any amount of money to customers within the bank and up to Sh1 million from their mobile phones to other banks, a significantly higher sum than the current maximum transfer of Sh140,000 per day on Safaricom’s M-Pesa, which must be done in two instalments.