Author: Muthoga Mungania

Curtains close for East Africa’s automotive powerhouse CMC Motors Group after announcing it is closing its operations in Kenya, Uganda and Tanzania. The automotive firm said it has been facing several economic challenges “including economic pressures, currency depreciation, and rising operational costs”. “However, despite restructuring efforts and a transformation programme initiated in 2023, the market...

Kenya-based venture capital firm Purple Elephant has secured $4.5 million in seed capital, making it one of Africa’s biggest rounds of tourism-tech funding. The venture studio designs and builds climate-focused startups to improve sustainable travel and touring in Africa through regenerative tourism.  Regenerative tourism is a type of sustainable travel that aims to improve and...

The World Bank has suspended its funding to Gabon once again due to payment arrears from its earlier loans. Gabon’s Ministry of Public Accounts said in a January 10th statement that the country had accrued debt arrears of $26.7 million (17 billion CFA Francs) . The latest suspension follows that of June on unpaid bills....

Frelimo party’s Daniel Chapo has been sworn in as Mozambique’s fifth president after a disputed election that left several casualties during months-long protests. The President-elect took his oath of office on Wednesday, January 15 in a small inauguration ceremony attended by few of his supporters. The October elections have been decried as rigged by opposition...

East Africa received the most funding from startup investors for the second year in a row, attributed to more investment directed to Kenya, a new report shows. The Big Deal Africa report shows that the Eastern African region received $725 million in 2024, representing an 18 percent drop from the year before. “Kenya alone ($638m)...

Several companies have exited Zambia and Zimbabwe due to currency instability and challenging economic conditions. Among the latest firms to leave in 2025 are regional supermarket chain Choppies and French dairy processor Lactalis International. Choppies recently announced its departure from the Zimbabwean market, citing the hostile economic environment marked by currency instability and the collapse...

Tanzania’s central bank has maintained it benchmark rate at six percent in the latest review, holding it for the third consecutive meeting. The monetary policy committee (MPC) met on January 7th, 2025 and after reviewing the economic and inflationary factors decided not to review the rate in a bid to keep inflation below its target...

Kenya’s economic growth slowed in the third quarter of last year from the same period in 2023, marking the lowest rate since the pandemic in 2020, on the back of the underperformance of most sectors of the economy, the statistics office said on Tuesday. The Kenya National Bureau of Statistics (KNBS) said the decline was...

Kenya Airways share will resume trading after a five year suspension from the Nairobi Securities Exchange, following the overturn of its performance in the last reporting period. In a Monday statement, the NSE said it had lifted the five year suspension and investors could buy and sell the company’s stocks. “The suspension on the trading...

Kenya and Ethiopia are among the most indebted countries in East Africa. Analysis of data from the International Monetary Fund (IMF) shows Kenya ranked second behind Egypt on high debt levels. Several other African countries grappling with mounting debts to the IMF are Ethiopia, Angola, Senegal, Cameroon and South Africa. These debts from the IMF...

The year 2024 was characterized by high interest rates and inflation which saw many companies exit the region with others looking to merge operations or all together pursue buyouts from other firms.This resulted in job losses and protracted battle for control. One of the largest and most recent controversial deal was the sale of 100...

Tanzania’s National Development Corporation (NDC) is inviting bids for the establishment of a soda ash processing plant at Engaruka Basin in Monduli District, Arusha Region. Potential investors are invited to partner with NDC to tap into the mineral’s potential to significantly support Tanzania’s economic development. “The primary objective is to secure a qualified strategic local...

Monday, December 30th, 2024 – Small capitalisation stocks at the Nairobi Securities Exchange (NSE) unexpectedly emerged as the leading gainers this year, driven by speculative trading and a resurgence in profitability in some firms that enhanced their dividend returns. Despite blue chip stocks like Safaricom performing better during the last years’ bear runs, microcap firms...

Access Bank Plc has raised $228 million in a rights issue from 17.8 billion ordinary shares as it embarks on an expansion plan across the continent and new markets. The bank said it had secured regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission for the rights offer, a...

Tanzania’s central bank has scraped card payments fees and warns merchants against adding extra charges on these transactions. The country’s apex bank and regulator said transactions from debit and credit cards at various point of sales (POS) terminals are free of charge. “One of the key measures taken is ensuring that payments made using debit, credit or prepaid cards at merchant Point of Sale (POS) terminals are completely free of charge for consumers,” said Mr Emmanuel Tutuba, the governor of the Bank of Tanzania (BoT) in a statement dated Monday, December 23rd. The governor emphasised the bank’s commitment to promote…

Kenya’s President William Ruto has implemented significant changes in his cabinet, reshuffling key positions and terminating the roles of two ministers. This strategic move has brought in new faces, including some who served under the previous administration of former President Uhuru Kenyatta, signaling a blend of continuity and new direction in governance. Among the notable...

Kenya’s President William Ruto has nominated some of former head of state’s men in his recent cabinet reshuffle. Dr Ruto has nominated Mutahi Kagwe as the new minister for Agriculture, Livestock, and Development, replacing Andrew Karanja, who has been proposed as Kenya’s Ambassador to Brazil. Mr Kagwe served under former president Uhuru Kenyatta and then deputy President William Ruto since 2020 as the cabinet secretary for health until the end of his term. Other nominations include former Nakuru Governor Mr Lee Kinyanjui proposed to lead the Ministry of Trade, while former Kiambu Governor William Kabogo was nominated to head the…

Kenya’s cabinet has approved the extension of the government to government oil deal with Gulf-based companies. In a dispatch on Tuesday, the Cabinet said an oil supply deal with Saudi Aramco, Abu Dhabi National Oil Company and Emirates National Oil Company would help to ease the pressure on purchasing petroleum from the Gulf region. “The...

Kenyan President William Ruto has expressed confidence that the US government will prolong the African Growth and Opportunity Act (Agoa) trade accord. This comes after concerns were raised that the recent elections would disrupt the redevelopment plans. President Ruto said he is hopeful that United States President- elect Donald Trump will support the renewal of...

Ethiopia and Somalia have agreed to work together to solve Addis Ababa’s plans to build a port in Somaliland. In talks mediated on Wednesday by Turkish President Tyyip Erdogan, the two East African country leaders said they had agreed to find commercial agreements to allow landlocked Ethiopia access to and from the sea. “This joint...

The World Bank has downgraded Kenya’s growth projection for the year to 4.7 percent, levels matching the pre-pandemic slowed rate of 4.6 percent, from an earlier forecast of five percent. In the latest Kenya Economic Update the bank said the slower growth is due to a number of issues experienced in the year including the...

Kenya Railways defaulted on a $1.3 billion loan from China Exim Bank used for the construction of the Mombasa-Naivasha Standard Gauge Railway (SGR). A report from the National Treasury reveals that the default will cost Kenya Railways penalties estimated at $12.4 million, incurred as a 1% fine on the outstanding arrears. The country had initially...

Savannah Clinker Limited has withdrawn its bid for Bamburi Cement following arrest of its chairman and managing director, Benson Ndeta, allowing Tanzania’s Amsons Industries to win the bid. In a Wednesday (04.12.24) notice from the Capital Markets Authority (CMA) to Bamburi shareholders, Kenyan based Savannah is no longer in the running to acquire the listed...

Carrefour’s closure of one of its stores in Kenya’s lake city of Kisumu comes amid stiff rivalry with Naivas supermarket in Kenya. The recently closed store at Mega Plaza in Kisumu is only a few metres away from Naivas supermarket. In an interview with Kapital Afrik, Carrefour’s regional director of East Africa at Majid Al...

The African Development Bank has approved a EUR 200 million ($209.8 million) partial credit guarantee (PCG) to support Togo’s inaugural sustainable financing to implement green and social projects. The guarantee will go towards the preservation of land and water biodiversity, educational services, support for employment, financial inclusion and economic empowerment. “This intervention will contribute to...

President Ruto has directed 34 state agencies to join the E-Citizen platform or face disciplinary actions. The government agencies have been given a week to migrate their services to the E-Citizen platform. Among those found non-compliant are Consolidated Bank of Kenya, Institute of Certified Public Accountants of Kenya, Kenya Space Agency, Development Bank of Kenya...

Kenya’s High court has ordered the government to reveal the contents of the Adani deals after President William Ruto’s pronouncement cancelling ties with the Indian conglomerate during his state of the nation address last week. Justice Bahati Mwamuye ruled on Wednesday (27.11.24) that further from providing documentation on the Adani deals, the government is blocked...

John Mbadi’s first speech as Kenya’s Cabinet Secretary for National Treasury and Economic Planning was anchored on a raft of reforms including on tax amnesty, revenue mobilisation and debt management. “The number one priority for me, is debt accountability,” he stated during his vetting in August 2024. He emphasized the need and urgency to address...

Kenya’s President William Ruto defended his administration’s record while delivering his second State of the Nation Address in Parliament on Thursday. The President highlighted his developments record over the last two years since taking office in August 2022. Unemployment DrRuto said his administration has provided jobs to the citizens of Kenya in various sectors including...

Kenya could raise over $781 million (Ksh100.75 billion) nearly a third of Treasury’s target in the rejected finance bill, by taxing high networth individuals (HNWIs) in the country. A new report by National Taxpayers Association (NTA) dubbed “Taxing Wealth in Kenya” shows that Kenya’s high network individuals would finance various ministries and state departments offering...