MaDaFu Newspaper

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*Today’s News Highlights*

▪ *Treasury raises domestic borrowing by Sh181 billion*
The Treasury has adjusted its domestic borrowing costs upwards by Sh180.6 billion to finance its Sh3.973 trillion budgets amidst flagging tax revenues. Projections in the Budget Policy Statement 2025, or BPS 2025, show that net domestic borrowing target is now Sh593.7 billion from Sh413.1 billion, as the government takes advantage of the lower interest rates to ease its financing pressures. Interest rates had risen, with investors lending the government at a high of 18 percent with the Central Bank of Kenya's effort to fight high consumer prices, reducing liquidity in the market.

▪ *CBK raises Sh130 billion from Feb infrastructure bonds*
The Central Bank of Kenya (CBK) has raised Sh130 billion for the government from two reopened infrastructure bonds (IFBs) whose auction closed on Wednesday, after investors oversubscribed the offer amid expectations of interest rates coming down in the near term. The reopened IFBs on sale comprised 14-year and 17-year papers which were initially sold in November 2022 and March 2023 respectively. Buyers offered the Central Bank of Kenya (CBK)—the government’s fiscal agent— a total of Sh193.9 billion against a target of Sh70 billion, eyeing the relatively high coupon rates on the papers (compared to prevailing secondary market yields).

▪ *Chaos as USAid contracts, grants in Kenya terminated*
The US government has begun issuing notices terminating contracts and grants to programmes it funds through non-governmental organisations (NGOs) in Kenya, marking an escalation from an earlier directive by President Donald Trump freezing billions of dollars in overseas aid support for 90 days. The United States Agency for International Development(USAid) on Wednesday sent termination notices to several top NGOs it funds in Kenya—sparking chaos of job losses and potential lawsuits by service providers, landlords, and contractors who had been tapped by the organisations.

▪ *Kenya targets issuing first Sh65bn sustainability-linked bond by June*
Kenya is set to issue its first sustainability-linked bond by June, targeting to diversify financing sources to cover the annual budget deficit. Sustainability bonds proceeds are exclusively used to finance or re-finance projects that improve social and environmental sustainability. The Sh65 billion sustainability-linked bond has been included for the first time under projected changes to the 2024/25 budget which runs to June 30, 2025. Sustainability-linked bonds are securities whose key performance indicator is linked to the issuer’s achievement of climate or broader sustainable development goals (SDGs).

▪ *Imports to raise current account deficit by Sh135bn*
Kenya’s current account deficit is expected to widen by $1.04 billion (Sh134.9 billion) in 2025 on higher imports, but will remain below the projected medium-term average of four percent of GDP, the central bank says. The Central Bank of Kenya (CBK) said last week that the deficit was estimated at $ 4.54 billion (Sh587 billion) at the end of 2024, equivalent to 3.7 percent of GDP, but will rise to $5.59 billion (Sh721.9 billion), or 3.8 percent of GDP, by the end of this year.

_Courtesy: Business Daily_

*Today’s News Highlights*

▪ *Treasury seeks Sh200bn budget top-up amid weak tax collections*
The National Treasury is set to seek the approval of MPs to lift the budget for the fiscal year to June by Sh199.9 billion on the back of underperformance in tax collections, pointing to the likelihood of increased borrowing to cover the widening funding gap. The Cabinet approved the proposed second supplementary budget estimates covering the 2024/25 fiscal year with the top-up set to lift overall expenditure and net lending for the period past the Sh4 trillion mark, up from Sh3.88 trillion currently.

▪ *16 listed companies fail to issue investor calendars*
Sixteen listed firms are yet to issue investors with a forward-looking events calendar for 2025, a month from the January 10 deadline. A spot-check of listed firms’ investor relations pages and the Nairobi Securities Exchange (NSE) investor calendar webpage as of Tuesday afternoon showed that 46 of the 62 listed entities had made the voluntary disclosure, with the rest being mostly suspended companies. The disclosures are, however, voluntary implying that the 16 firms will not be facing sanctions from the Capital Markets Authority (CMA) for non-compliance.

▪ *The Cabinet raises limit for untaxed traveller items*
The Cabinet has approved a higher value of personal effects that travellers can bring into Kenya without being taxed, offering relief to those inconvenienced by seizures by tax agents at various ports of entry. The move is expected to benefit many citizens who come back with goods of small value from abroad. “Kenyan citizens will benefit from an increased duty-free threshold of goods brought into the country, which has now been increased from Sh50,000 to Sh250,000,” a statement following the Tuesday special Cabinet meeting noted.

▪ *Insurers report first medical underwriting profit in three years*
General insurers have posted underwriting profit from medical insurance covers for the first time in three years, offering a boost to a segment that has been struggling to stem out fraud from this business. Latest Insurance Regulatory Authority (IRA) data shows insurers posted a Sh397.23 million underwriting profit in the half-year ended June 2024, marking an improvement from a loss of Sh399.7 million they made in a similar period in 2023. The Sh397.23 million underwriting profit —premiums remaining after claims have been paid and administrative expenses deducted— is the first profit in this class of insurance since the Sh80.43 million posted in the year ended December 2021, helped by Covid-19 disruptions that put off many people from visiting hospitals.

▪ *Galana Energies bags Sh1bn diesel deal*
Galana Energies bagged a Sh1.105 billion deal to supply diesel for the Menengai and Baringo-Silali geothermal projects, lifting the veil on lucrative contracts for local oil firms taking on cash-rich multinationals. Disclosures by the Geothermal Development Company (GDC) show that Galana was already supplying the fuel by the end of last year. The contract period is, however, undisclosed. The deal is a major boost to the local oil firm given that it is one of the scores of the Kenyan oil firms that are fighting stiff competition from well-oiled multinationals for the fuel retail market.


_Courtesy: Business Daily_

*Today’s News Highlights*

▪ *Housing levy cash invested in T-bills hits Sh46 billion*
The value of cash collection from the affordable housing levy funds invested in short-term government securities has risen to Sh46 billion, signaling low absorption of the mandatory monthly contributions from workers and employers towards President William Ruto’s pet project. The Affordable Housing Board, the agency that oversees the development of houses and their off-take, says the billions of shillings are being invested in three-month Treasury bills instead of idling in accounts awaiting expenditure. The amount invested in the 91-day Treasury bills has doubled from Sh20 billion in May last year.

▪ *Co-op Bank cuts base lending rate to 14.5pc*
Co-operative Bank of Kenya has cut its base lending rate by two percentage points to 14.5 percent, marking its first major reduction in the price of loans since the central bank started lowering its benchmark in August last year. The Nairobi Securities Exchange-listed lender announced Monday morning that it has cut its base rate from 16.5 percent, with the reduction taking effect immediately.

▪ *Pension schemes’ returns jump to 28pc*
Pension savers are set to reap big after their funds recorded the highest annual returns in 12 years, backed by a good performance from equities and fixed income investments. A survey of pension returns done by fund administrator Zamara shows that the average annual return for pension funds stood at 28.8 percent last year, up from 1.6 percent in 2023. This is the highest overall return recorded by the funds since 2012 (28.4 percent), showing the positive translation of last year’s rally in share prices at the Nairobi Securities Exchange (NSE) on savers’ funds.

▪ *CMA moves to curb speculative trading in troubled companies*
The Capital Markets Authority (CMA) has approved new trading rules for troubled firms listed on the Nairobi Securities Exchange (NSE) in the latest changes seeking to enhance the operations of a special board established to host companies grappling with financial and governance challenges. The changes include a reduction in the daily trading limit for stocks of troubled firms from 10 percent to five percent and introduction of the special board known as recovery board (RB) in every market segment (Main Investment Market Segment (MIMS) and the Small and Medium-sized Enterprises (SME).

▪ *S. Africa investor loses bid to freeze Genghis accounts*
Nairobi-based investment bank Genghis Capital got a reprieve after a court rejected an application seeking to freeze its bank accounts over a debt feud with a South African businessman. Justice Alfred Mabeya rejected the application by Auswel Mashaba, seeking to freeze Genghis Capital bank accounts and at the same time, block the investment bank from selling its assets. According to the South African investor, Genghis Capital was disposing of its assets to defeat his pending claim of about Sh355 million.


_Courtesy: Business Daily_

Photo from Rishi Arun Parikh

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*Today’s News Highlights*

▪ *Speculators drive up stocks of small firms*
The number of small cap stocks at the Nairobi Securities Exchange (NSE) with outsized price gains has gone up this year as speculative trading takes hold in the market, despite the risk of losses on firms with weak fundamentals. NSE market data shows that in the first five weeks of this year, TransCentury leads the market with a gain of 282 percent to Sh1.49 per share, followed by Home Afrika at 157 percent to Sh0.95, East Africa Cables at 148 percent to trade at Sh2.68, and Flame Tree Group by 110 percent to Sh2.10 per share.

▪ *Banks post Sh262bn pre-tax profit on expensive loans*
Commercial banks set a new record pre-tax profit of Sh262.3 billion in 2024, buoyed by high lending rates and income from government securities, new disclosures by the Central Bank of Kenya (CBK) show. The performance signals a bigger headroom for banks to reward their shareholders with enhanced dividend payouts. Banks rode the wave of the rising interest rate environment to adjust lending rates upwards, while increasing their return from packing funds in government securities including Treasury bills and bonds. Interest charged on bank loans topped 25 percent last year when interest on Treasury bills topped the 16 percent mark.

▪ *Safaricom-Ethiopia M-Pesa customers triple to 10.8 million*
The number of M-Pesa customers in Safaricom’s Ethiopia subsidiary more than tripled from 3.1 million to 10.8 million in the 12 months to December 2024, backed by increased usage of the platform for airtime and data purchases, and the introduction of cross-border cash transfer services. Safaricom Telecommunications Ethiopia started offering M-Pesa service in August 2023, 10 months after it launched voice and data segments in the country. Unlike Kenya, where cash transfers and merchant payments form the bulk of M-Pesa transactions, Ethiopia has seen data and airtime purchases top the list of most used services on the platform.

▪ *Housing levy defaulters face accounts, PIN freezes*
Traders in the informal sector who fail to pay the monthly 1.5 percent housing levy risk having their bank accounts frozen and their PINs blocked in a new push to boost compliance. The Kenya Revenue Authority (KRA) is expected to launch a crackdown on defaulters, notably in the informal sector where traders are not paying the levy and businesses such as bars, salons and corner shops are not remitting deductions from their staff pay.

▪ *US firm eyes Sh129bn locally for Expressway*
US infrastructure investment firm, Everstrong Capital, will raise Sh129 billion from the local market for the construction of the 440-kilometre Nairobi-Mombasa Highway, as it targets to break ground by the end of the year. The company yesterday signed an agreement to spearhead fundraising of $1 billion(Sh129.2billion) from local banks and pension funds, marking a key step in the development of Usahihi Expressway, the key road that is expected to cut the trip between the capital and the coastal city down to 4.5 hours.

_Courtesy: Business Daily_

*Today’s News Highlights*

▪ *Foreigners sell Sh1bn NSE stocks in Jan*
Foreign investors remained net sellers of stocks traded on the Nairobi Securities Exchange in January, extending their exits into the new year. The investors offloaded shares worth Sh1.04 billion last month on a net outflows’ basis, furthering the Sh2.3 billion selloffs registered in the whole of 2024. Net outflows by the investors were largely attributable to capital flows back to their domestic markets on increased interest rates and growth concerns in emerging and frontier economies.

▪ *Mass layoffs of Kenyan staff loom after Trump aid freeze*
Thousands of employees of United States government-funded health projects and programmes in Kenya are staring at forced unpaid leave, and possible layoff following President Donald Trump’s order freezing aid for at least three months. Hours after occupying the White House on January 20, President Trump ordered a sweeping review of almost all US foreign aid and tasked billionaire Elon Musk, who has termed the United States Agency for International Development (USAID) a “criminal” organisation, with scaling down the agency.

▪ *How higher cost of storing fuel will affect air tickets from July*
The cost of handling and storing imported aviation fuel (Jet A-1) will rise by 8.6 percent from July, in what could trigger an increase in the cost of air tickets as airlines pass increased charges to passengers. New charges that have been gazetted by the Energy and Petroleum Regulatory Authority (Epra) show that oil marketers will pay Sh563.92 per cubic metre as storage and handling fees from the current Sh518.83, marking a rise of 8.6 percent.

▪ *IFC to invest Sh2bn in new SMEs fund*
The International Finance Corporation (IFC) is set to invest €15 million (Sh2 billion) in a fund of private equity firm AfricInvest, taking an undisclosed stake in the venture. IFC, via its SME Ventures Programme, will join a group of investors from whom AfricInvest Small Cap Management LLC will be raising a total of €180 million (Sh24 billion) for investments in several African nations.

▪ *Business registrations dip 7.6 percent on tough economy*
New business registrations recorded during the year to last December dipped 7.6 percent to 130,527 entities from 141,193 in 2023. This reversed a growth trend witnessed during 2023 when the new registrations had jumped 2.9 percent from 137,188 a year earlier. Analysis of data from the Business Registration Service (BRS) shows that last year’s drop was chiefly driven by a 15.3 percent contraction of business names registrations, which reduced to 70,693 down from 83,458 in 2023.

_Courtesy: Business Daily_

Video from Rishi Arun Parikh

*Today’s News Highlights*

▪ *Treasury opens first early domestic bonds buyback*
The Treasury has announced the first ever buyback of domestic Treasury bonds, targeting a partial early retirement of Sh50 billion on three papers that are due to mature in April and May this year. This buyback also marks a change in strategy for the government, which had initially intended to refinance two of the bonds through a switch issuance, which would offer the holders alternative bonds as a rollover option. To fund the domestic buyback, the Treasury is expected to lean on the proceeds of the ongoing sale of a pair of reopened infrastructure bonds, whose target is Sh70 billion.

▪ *Buyout, shares sale lift NSE equities transactions*
Significant changes to companies’ shareholding, including acquisitions, helped lift equities trading at the Nairobi Securities Exchange (NSE) to a three-year high last year. Corporate action on counters such as I&M Group and Bamburi Cement helped lift overall equity turnover for 2024 to Sh105.9 billion, up from Sh88.2 billion in 2023. Activity in the two companies generated high investor interest as measured by turnover with the firms emerging among the top traded stocks for the 12 months ended December 2024.

▪ *NSSF deductions pile pressure on private pension schemes*
Employers are redirecting retirement contributions from private pension schemes to the National Social Security Fund (NSSF) in a bid to shield themselves from higher operating costs as the compulsory deductions rise further this month. Many employee-sponsored schemes started witnessing a gradual shift when the NSSF Act 2013 triggered a rise in NSSF contributions from the flat rate of Sh200 that had been in place for decades to the current maximum of Sh2,160. Now private schemes are wary that a further rise in deduction to a maximum of Sh4,320 starting this month will force many employers to scale down or discontinue their existing retirement benefits arrangements to service NSSF without incurring additional burden.

▪ *Investigators see sabotage in KRA system outage*
Investigators are looking at an insider job at the Kenya Revenue Authority (KRA) as a possible cause of a sixday tax system outage in November, resulting in a rare fall in collections. Treasury Cabinet Secretary John Mbadi said the system failure had a major impact on revenue collections when the country had started recovering from the effect of youth-led anti-government protests which had hit economic activity hardest.

▪ *EA nations closer to regional power auction market*
Kenya and her Eastern African neighbours are inching closer to a regional auction market for electricity that is expected to help them avoid blackouts tied to generation hitches besides the possibility of cheaper electricity. Consultants tapped by the 13- member economies in the Eastern Africa Power Pool (EAPP), are expected to publish regulations that will govern the trade next month, and establish a Day Ahead Market (DAM) that will allow distributors to hedge against price volatility of the critical commodity among others. DAM will allow countries with excess power to submit price offers while those in deficit will table bids, in what will directly impact on the final prices besides ensuring steady supply and thus helping countries to avoid blackouts tied to generation hitches.

_Courtesy: Business Daily_

*Today’s News Highlights*

▪ *Kenya Power set to pay first interim dividend in 9 years*
Kenya Power has declared the first interim dividend in nine years, a further boost to shareholders after the firm’s half-year profit jumped 31 times to KES 9.97 Bn. The electricity distributor yesterday declared a dividend of KES 0.20 per share as net profits for the six months to December rose from KES 319 Mn posted in a similar period a year earlier.

▪ *Foreigners seen keeping off NSE on strong US stock market*
Foreign investors are expected to largely stay off emerging and frontier equities market this year, extending exits from the Nairobi bourse on attractive major markets led by US stocks. Analysts expect foreign capital to remain tied to developed markets on the strength of returns on offer. “In general, we expect continued outflows due to relatively more attractive returns offered in developed markets,” noted analysts at Sterling Capital. Foreign investors remained net sellers at the Nairobi Securities Exchange (NSE) for a fourth straight year in 2024 as they fled emerging and frontier markets to advanced economies on the prospects of comparatively better returns.

▪ *CBK seen making steeper rate cuts to unlock credit*
Analysts expect the Central Bank of Kenya (CBK) to slash base interest rates by as much as three percentage points by end of the year to reboot the softening economy on the back of relatively stable inflation and foreign exchange market. The CBK’s top-decision making organ, the Monetary Policy Committee (MPC), will hold the first meeting of this year following a bigger-than-expected 75 basis-point cut in benchmark lending rate to 11.25 percent during the last meeting early last December.

▪ *Tycoon Munga fails to block auction of his Britam shares*
Billionaire businessman Peter Munga has failed to block the auction of his 75 million shares in insurer Britam over Sh433.76 million defaulted bank loan that he had guaranteed one of his companies. High Court Judge Alfred Mabeya said that the businessman had no reason to block ABC Bank from attaching his shares valued at Sh604 million as a guarantor because the loan advanced to Equatorial Nut Processors remains unsettled.

▪ *Sasini blames China buyers for disrupting macadamia supplies*
Agriculture firm Sasini has accused Chinese macadamia importers of buying immature nuts from farmers after the government lifted restrictions on raw nut exports last year, starving local processors of quality supplies. The claims by Sasini highlight the differing opinions between macadamia processors and farmers, over the export moratorium, which was in place for 12 months from November 3, 2023, and which was extended by a month upon expiry.

_Courtesy: Business Daily_

*Today’s News Highlights*

▪ *Kenya Eurobond yields rise despite Moody’s upgrade*
Interest rates on Kenyan Eurobonds which trade in international markets have risen slightly, showing a negative response from investors despite Moody’s ratings outlook upgrade on Saturday. Moody's revised the country's outlook to positive from negative on the back of what it said were expectations of reduced risks of debt burden and liquidity. Rising yields imply that investors deem the traded securities as riskier while falling yields imply a lower risk stance.

▪ *Fund managers beat investment banks in net assets growth*
Fund managers have grown faster than investment banks, recording a faster growth in net assets or shareholders’ funds as they enjoy a boom from increased inflows into collective investment schemes. The fund managers ended December 2024 with a higher net asset value of Sh8.5 billion in contrast to Sh7.6 billion held by investment banks, ranking them first in this measure for the first time in at least five years.

▪ *Dangote gets a piece of Kenya market with Java House deal*
Africa’s richest man Aliko Dangote is set to get a piece of Kenya’s food and beverages market after a private equity (PE) firm backed by the Nigerian billionaire prepares to acquire restaurant chain Java House for an undisclosed amount. Mr Dangote, who is worth $27.4 billion (Sh3.54 trillion) according to the Bloomberg Billionaires Index, is among the investors backing Alterra Capital—the African-focused private equity fund that is seeking regulatory approval to acquire a majority stake in Java from UK-based Actis. The other PE fund in the Java deal is Phatisa.

▪ *Treasury seeks banks for rural credit guarantees*
The National Treasury is seeking partner banks to implement the Sh2.5 billion ($20 million) rural credit guarantee scheme, which seeks to catalyse funding into agriculture value chains. The scheme is a Treasury project backed by the International Fund for Agricultural Development (IFAD) whose goal is to support rural and smallholder agriculture sector-led development by improving access to appropriate financial services.

▪ *KRA nets Sh2bn in first month of extended amnesty*
The Kenya Revenue Authority (KRA) has collected Sh2 billion in the first month of an extended tax amnesty programme, representing 6.7 percent of the total targeted amount. The taxman hopes to mop–up Sh30 billion from accumulated penalties and interest for companies and individuals under a new phase of a tax pardon that runs until June 2025.

_Courtesy: Business Daily_

*Today’s News Highlights*

▪ *CBK seeks Sh70bn from reopened bonds*
The Central Bank of Kenya (CBK) seeks to raise Sh70 billion from two reopened infrastructure bonds in February. The bank, which serves as a fiscal agent of the Treasury, has issued its prospectus for the reopened infrastructure bonds covering 14 and 17- year papers in the auction that runs until February 12. The reopened 14-year paper (with 11.8 years left to maturity) has a coupon rate of 13.9380 percent while the longer dated 17-year issue (15.1 years to redemption) will see investors lock in a return of 14.399 percent.

▪ *Roads and CDF take priority in development funding*
The national government has prioritised disbursements for roads, the Constituency Development Fund (CDF) and food security initiatives, amid cash challenges that saw just Sh129.8 billion put to development in the first six months of the current fiscal year. The latest statement of exchequer shows that in the half year to December, 70 percent of the cash released to fund the national government’s development projects went to seven State departments. The statement captures only development funding from the exchequer and does not address other sources of funding for projects.

▪ *Landlords face losses as State plans own offices*
President William Ruto’s administration is considering shifting from leasing offices to purchasing property and building its own units to cut costs, a plan likely to hit commercial property landlords hard. The Treasury has disclosed in a new report that the government is prioritising the construction of new offices over renting, citing public concerns over the high cost of leasing in high-end commercial locations. “[The government will] consider one-stop shop for all government agencies. The Public Administration and International Relations sector has prioritised the construction of offices as opposed to hiring including foreign missions,” the Treasury wrote in the draft 2025 Budget Policy Statement.

▪ *New vehicle sales decline 2.7pc on costly bank loans*
New vehicle dealers and assemblers have reported a 2.74 percent fall in domestic sales to 11,059 units in the year ended December 2024 on the back of high costs of borrowing. Fresh numbers from Kenya Motor Industry Association (KMI) show orders processed by firms such as Isuzu East Africa, CFAO Motors Kenya and Simba Corporation dropped further last year from 11,370 units in 2023. Demand for new vehicles has now declined for the third year running, with sales in 2024 the lowest reported since 2010.

▪ *Standalone units demand pushes Nairobi property prices up 5.2pc*
Property prices in Nairobi and its environs grew at 5.2 percent in 2024, doubling the 2.5 percent rate of growth of 2023 on rising demand for standalone units, whose supply has declined relative to apartments. A survey done by real estate firm HassConsult shows that Juja, Ridgeways and Loresho led in house price growth in the Nairobi area at 12.9 percent, 12.5 percent and 11.6 percent respectively in the year to December. Detached house prices grew by 7.5 percent in the year, outpacing apartments and semi-detached houses, whose price expansion stood at 1.6 percent and 0.8 percent respectively. HassConsult attributed the higher growth pace of the standalone houses to their lower supply compared to the other two property types.

_Courtesy: Business Daily_

*Today’s News Highlights*

▪ *Higher domestic borrowing risks lifting interest rates*
Efforts by the Central Bank of Kenya (CBK) and the Treasury to bring down interest rates in the economy are set to be tested by a 32 percent increase in government’s net domestic borrowing in the upcoming fiscal year, amid sub-par revenue collection and heavy debt repayment obligations. The Draft 2025 Budget Policy Statement (BPS) which was published last week, has retained the earlier disclosed domestic borrowing target of Sh545.8 billion for the 2025/26 fiscal year, which is an increase of Sh132.7 billion from the current year’s target of Sh413.1 billion. The domestic market will thus shoulder the bulk of financing the Sh759.4 billion budget deficit, for the upcoming year, with external lenders expected to contribute net loans of Sh213.7 billion.

▪ *Investors warm up to long-term bonds*
Investors have warmed up to longterm bond issuances as interest rates fall, allowing the Central Bank of Kenya (CBK) to veer off the set annual borrowing plan. The acceptance for the long-dated government securities in the January auction, has increased the scope for the apex bond to continue issuing the papers, extending the average time to maturity for Treasuries. January’s re-opened bonds whose tenure ranged from 8.3 years to 22.8 years, registered a performance rate of 196.6 percent with bids totaling Sh58.9 billion against a target of Sh30 billion.

▪ *Stanbic faces licence threat over airline cash row in South Sudan*
The Bank of South Sudan (BoSS) has threatened to suspend Stanbic Bank’s licence over an ongoing dispute over millions of shillings deposited in a Kenyan airline’s bank account and later reversed. In a letter to Stanbic, BoSS said it had received a formal notification from the Internal Security Bureau (ISB) Financial Intelligence Unit (FIU) concerning the feud between the lender and Air Afrik Aviation, where it has been named as a party. The regulator directed Stanbic to cease any further actions or operations that may contravene existing regulations or obstruct ongoing investigation.

▪ *Court awards against State more than double to Sh44bn*
The value of lawsuits awarded against the government rose 2.4 times to Sh43.8 billion in the financial year ended June 2024, highlighting the cost to the taxpayer of poor governance and rampant disregard for the rule of law in public institutions. The figure was a rise from Sh18.47 billion awarded against the government in the previous financial year, as the number of civil suits filed against public institutions increased by 44.9 percent to 6,063 from 4,185, according to the Public Service Commission (PSC) data.

▪ *Eyes on new electricity tariffs as study set to start*
Kenya will next month roll out a study of the cost of service for electricity, with an eye on the new power tariffs that are expected to be in place from July next year. The Ministry of Energy invited firms to bid for the project that among others, seeks to reveal the current costs involved in generating, transmitting and distributing electricity which will then form the basis for the new electricity prices. Kenya Power is expected to submit a proposal on new tariffs to the Energy and Petroleum Regulatory Authority (Epra). The tariffs are expected to be in place for three financial years from July 2026.

_Courtesy: Business Daily_

Today’s News Highlights
▪*CBK raises Sh48bn from long-term bonds as interest rates decline
*The National Treasury has raised Sh48.5 billion from an oversubscribed bond whose sale closed on Wednesday, even as the Central Bank of Kenya (CBK) turned away Sh10.5 billion worth of expensive bids from investors. In the January issuance, the CBK reopened a 15-year paper first issued in 2018 and a 25-year bond whose debut sale was done in 2022, with a combined target of Sh30 billion. Investors offered Sh30.58 billion on the 15-year tranche, and Sh28.42 billion on the 25-year option, with the CBK taking up Sh23.75 billion and Sh24.73 billion from the two papers respectively.

▪*Why Kenya Re plans return to India*
Kenya Re will set up a liaison office in India, marking a return to the Asian country where it exited the crop insurance business after suffering major losses three years ago. The firm, which is majority-owned by the Government of Kenya, is seeking a contractor to build a physical branch in Gift City that will act as a base to expand operations in the wider Asian market. Deepening presence in Asia marks a change in plan given that the firm exited the crop underwriting business in India in 2023 after it suffered a substantial but undisclosed loss

▪*IMF-backed public tender automation drive cut by 82pc despite Ruto pressure*
The Treasury will scale down funding for ongoing IMF-backed automation of government tendering processes next financial year starting July despite pressure from President William Ruto for a full rollout. Draft budget proposal documents show the Treasury will cut expenditure on the long-delayed project by more than three-quarters (82.14 percent) to Sh100 million from Sh560 million in the current financial year.

▪*Monetary policy easing opens up cheaper financing for African states*
African countries are expected to enjoy friendlier terms when borrowing to finance budget deficits this year as regional and global central banks ease their monetary policy, reducing debt affordability concerns for countries such as Kenya that have large upcoming payment obligations. Global rating agency Moody’s says that the expected lower interest rates have seen it revise its sovereign credit fundamentals outlook (different from a rating outlook) for Sub-Saharan Africa (SSA) economies to stable, from negative last year.

▪*Why 41 percent of urban dwellers favour rent controls*
Four out of 10 Kenyans living in towns want the government to regulate rent to prevent landlords from raising it arbitrarily, amid a revelation that more than a third of households’ spending is on rent alone. This is based on a new Kenya National Bureau of Statistics (KNBS) Housing survey, which received responses from a section of rural and urban households in all the 47 counties and extrapolated the results to assess national sentiment on rent control and other issues. KNBS says the survey says 41 percent of 9.6 million Kenyans living in urban areas expressed the need for the government to regulate rent, even as 59 percent opposed.

_Courtesy: of Business Daily_

The government had indicated in its 2024/2025 annual borrowing plan that it would offer the switch options in November 2024 (Sh100.1 billion) and January 2025 (Sh104.5 billion), looking to avoid having to roll over these amounts in consecutive months towards the end of the fiscal year.

▪ Nearly half of Kenya’s real estate firms not regulated
Nearly half of real estate companies in Kenya are unregulated, a new report shining light on some of the reasons that could have caused growing customer complaints in the sector has revealed. The Real Estate Survey report 2023-24 reveals that 47.1 percent of the real estate firms are not registered with professional and regulatory institutions, mainly because they see it as unnecessary and not beneficial. The Kenya National Bureau of Statistics (KNBS) targeted all establishments engaged in real estate activities in the survey that was undertaken from March to May 2024. “The results indicate that 52.9 percent of real estate firms were registered with...professional or regulatory body in the country while 47.1 percent were not registered with any professional or regulatory body in the country,” says the KNBS in the survey.                                                                                                                                                    Courtesy: Business Daily

Photo from Rishi Arun Parikh

*Today’s News Highlights*

▪ *NSE investor wealth at a two-year high of Sh2trn*
Investor wealth at the Nairobi Securities Exchange (NSE) has climbed to a two-year high of Sh2.025 trillion as multiple stocks continue trading at near-annual highs in an increasingly bullish market. The NSE’s market capitalization —the measure of investor wealth— last touched the current level in October 2022, while the benchmark NSE 20 Share Index closed at a four-year high of 2145.52 points. There has been an increase in demand for equities as returns from fixed-income assets continue to narrow due to the recent slide in interest rates on government securities.

▪ *UAE is now Kenya’s second top export market on fuel orders*
The United Arab Emirates has leapfrogged four top markets to become Kenya's second largest destination for goods largely due to increased re-exports of jet fuel, as official data released yesterday shows, underlining Nairobi's growing status as a regional aviation hub. Kenya's earnings from goods sold to the oil-rich country more than doubled in the nine months ended September 2024 to Sh86.89 billion compared with Sh39.72 billion a year earlier, data collated by the Kenya National Bureau of Statistics shows. The 118.78 percent jump catapulted the Middle East's second-largest economy to become Kenya's second-largest goods export earner in the review period after Uganda (Sh100.51 billion), climbing four positions from last year.

▪ *CBK set to mint new coins to avoid possible stock-outs*
The Central Bank of Kenya (CBK) has kicked off a search for a firm to mint new coins, months after it signed a controversial Sh14.14 billion ($109,422,740) deal with a German company to print new notes to replace old ones and avoid possible stock-outs. The banking sector regulator said it targets to recruit a coin-minting company for a three-year contract through competitive bidding.

▪ *Fuel subsidy status audit report due this month in IMF deal*
The Auditor General’s Office is expected to publish a comprehensive audit on Kenya’s fuel subsidy status by the end of this month as part of a budgetary support deal the country has with the International Monetary Fund (IMF). This is one of the IMF’s structural benchmarks, or reform measures used by the multilateral financier to assess the program's progress. The IMF gave Kenya a deadline of January 2025 to implement this reform measure. It wants the audit report to highlight parameters the State will rely on to provide subsidies, emphasizing that only available resources should be used to cushion consumers.
▪ *Karauri, mysterious investors bet on matatu insurance*
One of the founders and key shareholders of the betting firm SportPesa, Ronald Karauri, has partnered with others to enter the general insurance business, focusing on public service vehicles (PSVs) that have resulted in losses for many insurers. A letter seen by the Business Daily shows that the Insurance Regulatory Authority (IRA) licensed Definite Assurance Company Limited as the newest general underwriter in the Kenyan market on December 11, 2024, after the company raised Sh600 million in capital and applied for the license.


_Courtesy: Business Daily_

Document from Rishi Arun Parikh

Today’s News Highlights

▪ Here are NSE's investment bankers' succession plans
Kenya's top investment banks are laying the ground for takeover of their companies by heirs in an elaborate succession plan seeking to ensure continuity of the businesses at the Nairobi Securities Exchange (NSE).

▪ Falling rates offer big corporates reprieve
In 2017 and 2018, Sanlam Kenya tapped two two-year loans worth $27 million (Sh3.5 billion) to, among other things, recapitalise the insurance businesses and finance completion of its office complex along Waiyaki Way.

▪ How the battle for deposits cost top lenders an extra Sh63 billionpar
Banks have watched as the number of customers opting to invest directly in government securities rises, forcing them to increase returns on deposits to levels last seen 26 years ago in an attempt to stop the flight to Treasury Bills and Treasury bonds.

▪ Special power tariff drives uptake of electric vehicles
The uptake of electric vehicles (EVs) in Kenya has grown nearly fourfold since the State introduced a special subsidised tariff in a bid to spur uptake of the units as the country seeks to cut its carbon footprint from the transport sector.

▪ Reduce digital tariffs for Africa's fast economic transformation
Digital trade is rapidly transforming economies across the globe, and Africa is no exception.

_Courtesy: Business Daily_

The Cost of Hiring a Football Stadium in Kenya Per Match by Football Teams: 🏟️

• Kasarani - KSh 80,000 (floodlights)
• Annex - KSh 29,000
• St. Sebastian Park - KSh 30,000
• Police Sacco - KSh 50,000
• Ulinzi - KSh 40,000
• Utalii - KSh 40,000
• Kinoru - KSh 29,000
• Dandora Stadium - KSh 30,000
• Ruaraka - KSh 20,000
• Thika Stadium - KSh 30,000
• Machakos Stadium - KSh 25,000
• Mumias Complex - KSh 20,000
• Bukhungu - KSh 20,000
• Gusii - KSh 70,000
• Awendo - KSh 15,000
• Ukunda - KSh 20,000
• Mombasa Sports Club - KSh 40,000

Today’s News Highlights

▪ Gains from NSE dead stocks beat blue-chip firms in 2024
Penny stocks at the Nairobi Securities Exchange (NSE) were the surprise top gainers this year, helped by speculative trading and a return to profits that boosted their dividend earnings.

▪ Safaricom seeks partners in phone insurance business
Safaricom wants to partner with insurance companies to insure millions of phones against breakage and theft ,marking the Tesco's new revenue stream months after registering an underwriting agency.

▪ Stronger shilling takes shine off gold listing on NSE
Gold has had a bullish 2024 with the price of the precious metal rallying on the back of renewed geopolitical tensions including escalation of conflict in the Middle East.

▪ MPs launch fresh bid to force down power prices
Members of parliament have launched a fresh bid to forcibly lower the prices at which power producers sell electricity to Kenya Power, in the latest push to reduce the cost of electricity.

▪ How Kenya averted risk of debt default during the year
In October 2023 , international commercial lenders made it clear that they would only lend to the Kenya government it it was prepared to pay between 13 and 19 percent in interest on dollar loans.

_Courtesy: Business Daily_

Today’s News Highlights

▪ Bank CEOs summoned over costly loans, cheap deposits
The Central Bank of Kenya (CBK) will this week step up pressure on commercial banks to cut lending rates at a crunch meeting with chief executives of top lenders who have started lowering interest on savings.

▪ Unclaimed cash, shares and dividends cross Sh75 billion
Unclaimed cash, shares and dividends surrendered to a State agency have crossed the Sh75 billion mark, reflecting the difficulty in reuniting the idle wealth as investors, including tycoons, show disinterest in reclaiming the assets.

▪ CBK to regulate buy-now-pay-later firms in Bill
The Central Bank of Kenya (CBK) will now determine the prices charged by buy-now- pay-later (BNPL) companies if proposed amendments to the law are passed by Parliament.

▪ Sanlam seeks Sh3.2 billion from shareholders to pay Stanbic loan
Sanlam Kenya plans to raise Sh3.25 billion from its shareholders to settle a Stanbic Bank Kenya loan and rescue the company from liquidity challenges.

▪KenGen gets Sh1.43 billion tax waiver
The Kenya Revenue Authority waived Sh1.43 billion in accumulated taxes by Kenya Electricity Generating Company (KenGen) following a review between the two State-run entities and a partial tax which ended June 2024, ending a decade-long dispute.

_Courtesy: Business Daily_

Edit, Sign and Share PDF files on the go. Download the Acrobat Reader app: https://adobeacrobat.app.link/Mhhs4GmNsxb

Today’s News Highlights

▪ State firms default on Sh266 billion Treasury-backed loans
Public institutions have defaulted on loans worth Sh266.5 billion, meaning the Treasury will step in to settle their obligations.

▪ KenGen earns Sh4bn from carbon credit sales
Electricity producer KenGen is set to receive $32.05 million (Sh4.14 billion) by January from the sale of its certified emission reductions (CERs), offering a sneak peek into the lucrative market of climate change initiatives.

▪ Foreigners buy extra Sh663 million KCB Group stake from local investors
Foreign investors purchased an additional 16.87 million KCB Group shares currently valued at Sh663.96 million in the three months ended September 2024, chipping away at the stake of locals.

▪ Suspect in Sh1.5bn Equity heist arrested from China
A man linked to the Sh1.49 billion heist at Equity Bank has been seized by detectives after jetting back from China where he had reportedly gone into hiding after receiving part of the loot in hard cash.

▪KRA raids Chinese cigarette marketers in tax fraud probe
Kenya Revenue Authority (KRA) investigators have raided offices and warehouses belonging to the local agents of the world's largest cigarette producer from China, as part of a preliminary probe of suspected tax fraud.

_Courtesy: Business Daily_

Today’s News Highlights

▪ Private sector pay falls for first time in over 30 years
Average monthly pay in Kenya's private sector has fallen for the first time in over three decades to Sh75,781, reflecting the impact of the country's soft economy that has pushed firms to keep a lid on costs.

▪ Ethiopia's birr hits Safaricom as Kenya unit profits grow
Safaricom will take longer to break even in Ethiopia after depreciation of the Horn of Africa nation's currency, birr, cut the telecoms operator's net profit amid a thriving Kenyan business.

▪ Carbacid unsure over Sh1.2bn buy of BOC Kenya
Uncertainty has hit the bid by Carbacid Investments to acquire fellow listed gas maker BOC Kenya even after the Capital Markets Tribunal struck out a petition opposing the protracted deal.

▪ Treasury raises Sh25 billion from two November bonds tap sales
The government has raised Sh25.7 billion from the first of two bond auctions this month, even as the Central Bank of Kenya continued to reject higher priced bids in efforts to bring down interest rates.

▪ KENHA, NLC ignore KenGen Sh250m claim for coast land
Kenya Electricity Generating Company (KenGen) is staring at losses of more than Sh250 million following acquisition of part of prime property in Mombasa for construction of a major road.

_Courtesy: Business Daily_

Document from Rishi Arun Parikh

Today’s News Highlights

▪ Trump win throws Kenya, US trade talks into doubt
Kenya's trade and investment deal with the United States that was set for conclusion next month has been thrown into uncertainty after Donald Trump was elected US president, capping a remarkable comeback four years after he was voted out.

▪ Shilling unmoved as dollar rallies on Republican's victory
The Kenya shilling remained relatively stable on Wednesday following the victory of Donald Trump in a US election that occasioned a sharp, one-day rally of the dollar against major world currencies.

▪ Private sector loans growth falls to low of 0.4 percent
Growth in lending by banks to the private sector slowed to a 22-year low of 0.4 percent in September, piling pressure on the Central Bank of Kenya (CBK) to lower its base rate despite concerns by the International Monetary fund that this could trigger fresh inflationary pressure.

▪ Why banks' lending rates are yet to fall
Commercial banks' loan interest rates are yet to move lower despite two successive cuts to the benchmark interest rate by the Central Bank of Kenya (CBK) to 12 percent from 13 percent.

▪ KenGen starts geothermal survey in Eswatini
KenGen is conducting exploration surveys in Eswatini to establish the country's geothermal energy potential, underlining its growing status as the go-to company in unlocking Africa's steam power

_Courtesy: Business Daily_

Today’s News Highlights

▪ Borrowers hit as IMF opposes CBK's plan to cut cost of loans
The International Monetary Fund (IMF) has warned Kenya against a larger interest rate cut despite the fall in inflation to a 17-year low and the recent stability of the shilling, saying that easing monetary policy risks price stability.

▪ Growth of new taxpayers slows on collapsed Finance Bill
The Kenya Revenue Authority (KRA) expects a slower growth in the number of new taxpayers it targets to recruit in the current financial year ending June 2025 after its strategy was derailed by the collapse of the Finance Bill, 2024.

▪ KPLC to renew contract with the most expensive power plant in Muhoroni
Kenya Power will sign a fresh Power Purchase Agreement (PPA) with Muhoroni Gas Turbine-owned by KenGen and the most expensive thermal plant in the country to shore up power supply to western Kenya.

▪ Kenya's private sector activity recovers, cash circulation woes persist
Kenya's private sector activity edged up slightly in October on the uptick in demand for goods and services, prompting firms to grow their workforce for the first time in three months.

▪ Kenya, IMF mull options as loan plan nears expiry
Kenya and the International Monetary Fund (IMF) are set to weigh options available to them as its existing multi-year programme nears its April 2025 expiry date.

_Courtesy: Business Daily_

📊 Current situation:

1. Stocks are falling like the economy is bracing for a recession

2. Oil prices are rising like the recession was cancelled

3. Gold prices are falling like inflation is gone

4. Bonds are falling like inflation has rebounded

5. Interest rates are rising like the "Fed pivot" is over

Today’s News Highlights

▪ Unit trusts sell bonds to buy stocks as interest rates drop
Collective investment schemes (CIS) or unit trusts have sold part of their bond holdings to invest in Nairobi Securities Exchange- listed stocks amid a decline in returns from government securities, including Treasury bills and bonds.

▪ Foreign investor count falls further amid market rally
The number of foreign investors at the Nairobi Securities Exchange (NSE) has dropped further, against a domestic market rally which has lifted the market by nearly 30 percent so far this year.

▪ Carbacid posts 3.3 percent profit rise as costs swell
Carbacid Investments has reported a 3.3 percent growth in net profit for the year ended July 2024 to Sh843.2 million, helped by higher demand for carbon dioxide in regional markets.

▪ StanChart in bid to double investment in wealth unit
Standard Chartered Bank said it will double investment in its wealth unit while paring back retail banking, as it lifted performance targets and said it will go further in reshaping the bank to try and meet those goals.

▪ How Sh175bn roads bond caused rise in fuel prices
The Sh7 a litre added to the fuel levy in July will be used to pay off Kenya's inaugural Sh175 billion roads bond, underscoring the State's defiance amid the public uproar that greeted the sharp increase.

_Courtesy: Business Daily_

Today’s News Highlights

▪ Infrastructure bonds fetch premium in secondary market
Bond buyers in the secondary market at the Nairobi Securities Exchange (NSE) have raised their demand for a pair of high interest infrastructure bonds (IFBs) floated in the last 12 months, looking to lock in the attractive returns as interest rates on new issuances continue to fall.

▪ HF Group stock falls 7.5pc on rights issue pricing in first trading session
HF Group's share price fell by 7.5 percent to Sh4.18 yesterday in the first trading session after the lender announced that its upcoming rights issue will be priced at Sh4 per unit when it opens in two weeks' time.

▪ Treasury reveals funding of counties over 11 years
Eleven counties have spent more than Sh100 billion each since the onset of devolution, a new statement shedding light on biggest beneficiaries of the devolved governance system shows.

▪ KRA starts integrating tax system with banks, telcos
The Kenya Revenue Authority (KRA) has started integrating its system with banks, money remittance firms and payment service providers like M-Pesa in fresh efforts to weed out tax evaders and boost revenue by billions of shillings.

▪ Absa, Equity, Co- op, DTB, Sidian, KCB to handle SHIF contributions
The Social Health Authority (SHA) has designated six banks including KCB, Sidian Bank, Co-operative Bank, Equity Bank, Abasa Bank, and Diamond Trust Bank as the official collection accounts for employer contributions.

_Courtesy: Business Daily_

How to Get a Safaricom eSIM Without Visiting a Physical Store

https://tech-ish.com/2024/10/28/how-to-get-a-safaricom-esim/

Today’s News Highlights

▪ Kenya eyes Sh113bn mega IMF loan disbursement
Kenya expects to receive Sh113 billion in the next tranche of loans from the International Monetary Fund (IMF) following a breakthrough in protracted talks that delayed funding from the multilateral lender after the rejection of new tax measures in June this year.

▪ State slashes domestic borrowing target to five-year low on UAE cash
Kenya now plans to cut domestic borrowing for 2024/25 by 5.9 percent to Sh388.37 billion, pushing it to the lowest point in five years as it looks to push interest rates downwards and stimulate private sector activity.

▪ CBK support to banks hits Sh5trn on cash crunch
Commercial banks have deepened their dependence on the Central Bank of Kenya (CBK) for liquidity support, pushing their cumulative drawdowns through reverse repurchase agreements (repos) this year to Sh5 trillion and signalling skewed cash distribution in the sector.

▪ Treasury sends Sh32.8 billion to counties after clearing legal hitch
The Treasury wired Sh32.8 billion to counties in September, marking the first disbursement to the devolved units in the new financial year after clearing a legal hurdle that had frozen the release of funds.

▪ Analysts see more drops in base interest rates amid pressure
Analysts see the Central Bank of Kenya (CBK) lowering base interest rates by at least 25 basis points before the end of the year on subdued inflation prices and the need to spur economic activity.

_Courtesy: Business Daily_

*Dear blessed Members, Greetings!*

Over the past 12 years; we have been together in various WA Groups that started with MTE, then Msa Expose and now we shall be renaming again as Madafu Newspaper under the same flagship. We shall continue updating you relentlessly with latest, accurate and timely information via various Groups under *Madafu Newspaper!*

1. *Madafu News* - for general, security and national updates. (Mombasa Expose renames as Madafu News) https://chat.whatsapp.com/COl8xeG31FULre6wdVZcM1
2. *Madafu Eateries* - for anything and everything in foodstuff's https://chat.whatsapp.com/HNBgEgOeuJX3paH7WC1ASn
3. *Madafu Deals* - for general trade merchandise from a pin to a car. https://chat.whatsapp.com/CQkkoIei0OYIVg27ZmxHWb
4. *Madafu Jobs / Vacancies* - for job openings and seeking with employers and employees together in the group. https://chat.whatsapp.com/LU7hOqVDaPm7UBICILwvUh

We have many more Groups on the way so keep posted and benefit from them. All these patriotic services are *free of cost!*

Engage the Group Admins for any query; *Share the Group Links* with your Friends, Family and Business Networks!

God bless and thank you!

𝟮𝟭 𝗙𝗮𝘀𝗰𝗶𝗻𝗮𝘁𝗶𝗻𝗴 𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮 𝗙𝗮𝗰𝘁𝘀

𝟭. Most Aussies (90%) live by the coast.
𝟮. The Indian Pacific train has the world’s longest straight track.
𝟯. Australia has over 60 wine regions.
𝟰. The Great Barrier Reef is huge and can be seen from space.
𝟱. The Great Ocean Road is a war memorial.
𝟲. The Australian Alps get more snow than the Swiss Alps.
𝟳. Fraser Island is the biggest sand island in the world.
𝟴. 80% of Aussie animals are found nowhere else.
𝟵. The world’s longest golf course (1,350 km) is in Australia.
𝟭𝟬. There are 10,685 beaches—one a day for 29 years!
𝟭𝟭. Australia has 21 of the world’s 25 most venomous snakes.
𝟭𝟮. It’s the world’s sixth largest country.
𝟭𝟯. Tasmania has the cleanest air in the world.
𝟭𝟰. Australia has no active volcanoes.
𝟭𝟱. The Dingo Fence is 5,614 km long.
𝟭𝟲. One-third of Australians were born overseas.
𝟭𝟳. The Aussie dollar is waterproof and hard to fake.
𝟭𝟴. Australia is the only country on its continent.
𝟭𝟵. There are over 1,500 species of spiders here.
𝟮𝟬. 91% of the land is covered in native plants.
𝟮𝟭. The world’s oldest fossil, 3.4 billion years old, was found in Australia.

SPEAKER WETANG'ULA: DEPUTY PRESIDENT NOMINATION REQUIRES NATIONAL ASSEMBLY VOTE, NOT APPROVAL

Parliament Buildings, Nairobi
Friday, October 18, 2024

National Assembly Speaker, Rt. Hon. (Dr.) Moses Wetang'ula, clarified to the House that the nomination of Interior and National Administration Cabinet Secretary, Prof. Kithure Kindiki, for the position of Deputy President will not follow the procedure outlined in the Public Appointments Parliamentary Approval Act.

In guiding the House on the nomination process, Speaker Wetang'ula referred to Article 149(1) of the Constitution, which stipulates that when a vacancy arises in the Office of the Deputy President, the President must nominate a candidate within fourteen days.

The National Assembly is then required to vote on the nomination within sixty days of receiving it.

“From a reading of Article 149(1), it is clear that the National Assembly is required to vote on the nomination within 60 days. Notably, the Constitution's drafters intentionally distinguished the language in this article, specifically requiring a vote, not an approval, on the nomination,” Speaker Wetang'ula explained.

He contrasted this with Article 132(4) of the Constitution, which requires the National Assembly's approval for the President's nominations for positions such as Cabinet Secretaries, the Attorney General, the Secretary to the Cabinet, Principal Secretaries, and diplomatic representatives.

For these roles, parliamentary approval is mandatory before formal appointments can be made by the President.

However, for the Deputy President's position, Speaker Wetang'ula emphasized that the Constitution explicitly calls for a vote, not an approval process.

“The Public Appointments Parliamentary Approval Act applies only where the Constitution or another law requires House approval for an appointment. Since Article 149(1) mandates a vote on the Deputy President's nomination, the approval process under the Public Appointments Parliamentary Approval Act does not apply,” he clarified.

𝙃𝙚𝙧𝙚 𝙖𝙧𝙚 𝙨𝙤𝙢𝙚 𝙩𝙞𝙥𝙨 𝙛𝙤𝙧 𝙨𝙖𝙫𝙞𝙣𝙜 𝙤𝙣 𝙖𝙞𝙧 𝙘𝙤𝙣𝙙𝙞𝙩𝙞𝙤𝙣𝙞𝙣𝙜 𝙚𝙡𝙚𝙘𝙩𝙧𝙞𝙘𝙞𝙩𝙮 𝙘𝙤𝙨𝙩𝙨:
To save on electricity, I set my air conditioner to dehumidification mode (DRY mode), keeping the room's humidity between 50-60%.
On the remote control, I set the temperature to 26°C, but the actual room temperature is 24.3°C, with a humidity of 47%. Normally, my room's humidity is around 70%. In Malaysia, the ideal, fresh, and healthy humidity range is between 50-60%.
This means my air conditioner is working well and is suitable for the size of the room. The optimal sleeping temperature is 24°C or 25°C. Even if you set the remote control to 16°C, you might only reach about 19°C, but the compressor will keep running, leading to a spike in electricity costs.
To save energy, set the remote control to dehumidification mode (DRY mode, represented by a water droplet symbol instead of a snowflake) and set the temperature to 24°C or 25°C. If it still feels uncomfortable, you can first set the remote to 22°C in cooling mode (COOL mode), and then switch to dehumidification mode (DRY mode).
Dehumidification mode can save approximately 50% of electricity compared to cooling mode (COOL mode) because the compressor operates at a lower frequency.
For reference, the electricity cost per hour for an air conditioner is approximately:
- 1 HP (900 watts) - 20 sen per hour
- 1.5 HP (1.2 kW) - 30 sen per hour
- 2 HP (1.9 kW) - 40 sen per hour
- 2.5 HP (2 kW) - 50 sen per hour

Today’s News Highlights

▪ Kenya eyes Sh113bn mega IMF loan disbursement
Kenya expects to receive Sh113 billion in the next tranche of loans from the International Monetary Fund (IMF) following a breakthrough in protracted talks that delayed funding from the multilateral lender after the rejection of new tax measures in June this year.

▪ State slashes domestic borrowing target to five-year low on UAE cash
Kenya now plans to cut domestic borrowing for 2024/25 by 5.9 percent to Sh388.37 billion, pushing it to the lowest point in five years as it looks to push interest rates downwards and stimulate private sector activity.

▪ CBK support to banks hits Sh5trn on cash crunch
Commercial banks have deepened their dependence on the Central Bank of Kenya (CBK) for liquidity support, pushing their cumulative drawdowns through reverse repurchase agreements (repos) this year to Sh5 trillion and signalling skewed cash distribution in the sector.

▪ Treasury sends Sh32.8 billion to counties after clearing legal hitch
The Treasury wired Sh32.8 billion to counties in September, marking the first disbursement to the devolved units in the new financial year after clearing a legal hurdle that had frozen the release of funds.

▪ Analysts see more drops in base interest rates amid pressure
Analysts see the Central Bank of Kenya (CBK) lowering base interest rates by at least 25 basis points before the end of the year on subdued inflation prices and the need to spur economic activity.

_Courtesy: Business Daily_

Today’s News Highlights

▪ CBK cuts main lending rate by biggest margin since Covid-19
The Central Bank of Kenya (CBK) has cut the benchmark interest rate by the largest margin since the start of Covid-19 economic hardships in March 2020, signalling relief to borrowers plagued by costly loans.

▪ Private sector loans collapse to interest rate cap-era lows
Loans to businesses and households collapsed in August to low levels registered in the interest-rate cap era seven years ago as high interest rates turned away borrowers.

▪ EA corporate deals dip 18pc on low Kenya activity
The number of reported corporate deals in East Africa dropped by nearly a fifth in the first seven months of the year compared to the corresponding period in 2023, largely due to reduced activity in Kenya.

▪ Cash in bank fixed deposit accounts hits Sh2trn
The amount of money in savings held in fixed deposit accounts crossed the Sh2 trillion mark for the first time in July, underlining the impact of a scramble by savers lured by high interest rate offers by commercial banks.

▪ Investors seen seeking higher returns in October T-bond sale
Investors face a race to lock in higher interest returns in the October Treasury bond sale which closes today, with rates expected to come down in subsequent offers after the Central Bank of Kenya (CBK) further cut its indicative lending rate by 75 basis points to 12 percent on Tuesday.

_Courtesy: Business Daily_