Author: Muthoga Mungania

Airtel Africa is set to receive $100 million from the International Finance Corporation (IFC) to support capital expenditures towards network infrastructure expansion in Kenya and Rwanda. The IFC loan is an add-on to a previous facility of $200 million to the multinational in April last year. Disclosures show that Airtel Kenya will receive $70 million...

MTN Group and Airtel Africa have entered into agreements to share network infrastructure in Uganda and Nigeria while looking for other markets, in a bid to extend digital and financial inclusion across the continent. The two companies are targeting improved network cost efficiencies, broader coverage and the provision of mobile services to millions of customers...

Kenya Airways (KQ) has reported a Ksh5.4 Billion ($39.9 million) profit for 2024-a record high in 11 years, overturning a loss of Ksh22.6 billion ($205.4 million) in 2023. This marks a $216.5 million (Ksh28 billion) turnaround, with revenue up six percent from $1.4 billion to $1.5 billion and passenger numbers rising four percent to 5.23...

The United States has named the real estate sector as one of the main conduits of dirty money in most African countries including Kenya, Tanzania and Senegal. A new report from the US State Department shows that lawyers, real estate agents and notaries are fast becoming money laundering avenues for their roles as designated nonfinancial businesses and professions (DNFBPs). Real estate was flagged as a soft target for criminals who want to clean their ill-gotten money mainly due to the high participation of unregistered players that are not regulated and the use of cash. The US says that DNFBPs whose…

Ecobank Kenya has raised its capital base to $65 million after injecting $27 million in fresh capital that will support the lender’s regional expansion plans, becoming the first bank to disclose capital injection in view of Kenya’s revised core capital requirements. The bank has received US$27.0 million capital injection following the Business Laws (Amendment) Act...

Authorities in Uganda have been working quickly to make sure that Umeme’s departure at the end of this month will not interfere with the country’s electricity supply. Uganda’s Parliament approved a government request on Friday to borrow $190 million from Stanbic Bank Uganda to reimburse the utility firm for its unrecovered investments prior to the...

Ethiopia’s Prime Minister Abiy Ahmed has said that his government will not be going to war with Eritrea over the access to the Red Sea, after speculations of a looming conflict between the two nations. The Horn of Africa nations have been longtime foes including recently Eritrea’s involvement in the Tigray War in Ethiopia, resulting...

Rwanda and the Democratic Republic of Congo (DRC) held first talks in Qatar on Tuesday since M23 rebels seized parts of Eastern Congo. President Paul Kagame of Rwanda and Tshisekedi Tshilombo of DRC agreed to a ceasefire in the informal trilateral meeting attended by the Amir Sheikh Tamim bin Hamad Al-Thani of Qatar. “The Heads...

Rwanda has cut diplomatic ties with Belgium and given its diplomats 48 hours to leave the East African nation following allegations of their respective roles in the war in DR Congo. Belgium colonized both Rwanda and Congo before they gained independence and their relationship has been dicey. In a strongly worded statement, Rwanda accused Belgium of harm and attempts to destabilize it. “The Government of Rwanda has informed the Government of Belgium of its decision to sever diplomatic relations between the two countries, effective immediately,” read the statement in part. “This decision was taken after an in-depth examination of various…

Kenya is in talks with the International Monetary Fund (IMF) for a new lending programme after both sides agreed to abandon a ninth review of the current $3.6 billion loan. The IMF team was in Kenya from March 6th to 14th led by the mission chief Ms Haimanot Teferra. They met with President William Ruto,...

Tanzania has defended a controversial agreement to import electricity from Ethiopia in a bid to address the frequent power outages. The deal is a power sales agreement for 100 megawatts of electricity by Ethiopia to Tanzania, after a three-way negotiation between Ethiopian Electric Power (EEP), the Tanzania Electric Supply Company (TANESCO), and the Kenya Electricity...

Kenya has lost about $15.5 million in tobacco exports after British American Tobacco (BAT) shutdown its operations in Khartoum following deadly war in the country. BAT’s plant in Khartoum, Sudan, which sourced unprocessed tobacco from Kenya for cigarette production, shut down soon after violent clashes broke out between the Sudanese army and a paramilitary group...

Equator, a climate venture capital firm has closed a $55 million fund focused on supporting environment-tech startups in sub-Saharan Africa on Tuesday. The firm which is based in the United Kingdom and Kenya received support of its first fund from International Finance Corporation (IFC), Proparco, British International Investment (BII), the Global Energy Alliance for People...

Kenyan employers and employees are preparing for more difficult financial times, as the National Social Security Fund (NSSF) Act of 2013 enters its third year of implementation effective February last month. The contribution doubled from $16.72 (Ksh2,160) to $33.44 (Ksh 4,320) for all employees with gross earnings of at least $557.3 (Ksh72,000) starting February 2025.The...

Kenya is in talks with Thailand to reopen its borders for 64 of its citizens who were rescued from human trafficking in Myanmar to be returned to Nairobi. The Ministry of Foreign and Diaspora Affairs has said that the 64 Kenyans rescued in ‘scam compounds’ in Myanmar are awaiting entry into Thailand to be repatriated...

Kenya has raised $1.5 billion from creditors in the latest Eurobond sale to help clear its public debt stock.Citigroup Inc. and Standard Bank Group Ltd. are handling the sale of the 11 year notes which will mature in March 2036 with an interest of 9.5 percent. Earlier this week, Kenya announced that it would sell additional dollar bonds to pay for the 2027 repurchase of $900 million in eurobonds. Kenya has been managing its debt maturity profile since last year, when its finances were severely strained.The country has gained breathing room against large debt repayment requirements in April and May…

Kenyan chief executive officers (CEOs) say increased taxation, high energy costs and reduced consumer demand are a threat to economic growth. A new survey published on Monday by the Central Bank of Kenya (CBK) shows that although the executives are confident in Kenya’s economic prospects, they are cautious of unpredictable tax regimes and increased costs of doing business.The survey covers over 1,000 CEOs from manufacturing, agriculture, tourism, hotels and restaurants, financial services, professional services, ICT and telecommunications, among others.The CEOs reported improved optimism in growth prospects for the Kenyan economy in the next 12 months on account of expectations of…

Uganda is considering a lower budget for the 2025–2026 fiscal year as technocrats attempt to strike a compromise between expenditure objectives and numerous funding shortages. This comes in the face of mounting state debt and growing electoral anxiety. Despite sharing similar issues, other neighbouring East African countries, including Kenya and Tanzania, have declared plans to increase spending. Uganda’s total resource envelope for the fiscal year 2025–2026 was valued at USh57.4 trillion ($15.5 billion) at the end of December. Earlier last month, it was increased to USh66 trillion ($17.8 billion) by adding more spending items that the Cabinet had supported.Uganda’s current…

United States President Donald Trump has cancelled five large contracts and grants in Kenya totalling $251.5 million (Sh32.5 billion). Mr Trump terminated three USAID contracts in Kenya totalling Sh28.36 billion ($219.5 million) and two grants totalling Sh4.2 billion ($32.72 million), according to disclosures made in court documents. In the upcoming weeks, more terminations are anticipated...

Kenya has deferred $682.2 million in funding expected from the International Monetary Fund (IMF) under the ninth review to the next fiscal year. This indicates plans to enter a new financing agreement with the multilateral lender once the current one expires in April. The National Treasury has disclosed in the latest Budget Policy Statement for...

Ethiopian state-owned telecommunications firm Ethio Telecom recorded a half-year revenue rise of 43.3 percent to 61.9 billion birr ($491.57 million). With 1.01 trillion birr ($7.9 billion) in transactions in just six months—nearly the same amount as the previous three years from Telebirr, the mobile money service offered by Ethiopian telecom supported the increased earnings. Earnings...

South Sudan’s President Salva Kiir has fired two of his five vice presidents, spy chief among other senior officials in recent reshuffle of his government. The two vice presidents who have been removed from office are James Wani Igga and Hussein Abdelbagi. Ms Josephine Lagu and Mr Benjamin Bol Mel have taken the places of...

Analysis of the data shows that in the year ended December 2023, Nigeria received $368 million followed by Tanzania scoring $337 million from the United States. Uganda received $295 million while South Africa had $279 million from the United States Agency for International Development (USAID). After taking office in January, U.S. President Donald Trump ordered...

The United Nations (UN) has warned that the conflict in the Democratic Republic of Congo (DRC) is likely to worsen and escalate to other countries in the region. UN human rights chief Volker Türk said on Friday that he was disturbed by the conflict in the eastern DRC and the many reports of sexual abuse...

Uganda’s central bank has held its main lending rate at 9.75 percent on Thursday, citing inflation looked contained despite uncertainties on the global stage. The monetary policy committee met on Thursday and kept the rate at 9.75 percent as it warned it might start tightening policy because of Donald Trump’s protectionist policies and their potential...

The Central Bank of Kenya (CBK) has cut its benchmark lending rate for the fourth monetary policy meeting in a row to 10.75 per cent on Wednesday. The Central Bank Rate (CBR) was lowered by 50 basis points to 10.75 percent, in a bid to promote cheaper loans to support economic growth. “The committee noted...

African Trade and Investment Development Insurance (ATIDI) is eyeing entry into the Northern and Southern African countries led by Egypt, Tunisia and Mauritania as part of its expansion plans. The multilateral development insurer, which has over 24 member countries, including Kenya, Uganda and Tanzania, said it is looking to expand to Egypt first and follow...

The African Development Bank Group (AfDB) is exploring a new currency model that is backed by African minerals to mitigate volatility risks and support the continent’s energy transition goals. In a new paper published by AfDB and KPMG South Africa, resource-rich countries can overcome foreign currency volatility by pooling together their minerals into a non-circulating...

Official data from the Kenya National Bureau of Statistics (KNBS) published on Friday (31.01.25) show inflation rose from three per cent in December last month, attributed to higher costs of food and transport. “The year-on-year headline inflation, as measured by the Consumer Price Index (CPI), stood at 3.3 per cent in January 2025,” KNBS stated...

London-based Actis has sold Java House, East Africa’s coffee chain to two private equity firms, a new notice shows.  According to a notice issued by the regional antitrust authority, the Comesa Competition Commission, Alterra Capital is expected to acquire the majority of the company’s shares while Phatisa would retain controlling rights despite its minority interest....