The Kenyan government has approved additional spending of KSh199 billion in the second supplementary budget, a nearly threefold increase from the KSh67 billion that the Draft Budget Policy Statement for 2025 had proposed. This is significant, though lower than previously reported, and still exceeds the projected revenue shortfall following the withdrawal of the Finance Bill 2024. From the proposed 2024/25 Supplementary Estimates No. II, KSh199 billion has been allocated, comprising KSh199 billion for recurrent spending and KSh145.8 billion for development. “The approval comes amid economic disruptions, including civil protests in June, July, and August 2024, which led to the withdrawal…
Author: Muindi
Muindi
Experience working on communication and marketing departments and in the broadcast industry. Interested in sustainable development and international relations issues.
US-based infrastructure investment firm Everstrong Capital has initiated efforts to secure Kshs 452.2 billion from Kenyan pension funds to finance the construction of the 440-kilometer Nairobi-Mombasa Expressway. In partnership with CPF Capital & Advisory, Everstrong Capital aims to channel significant pension fund assets towards this ambitious infrastructure project. CPF Capital & Advisory, a subsidiary of CPF Financial Services, will provide transaction advisory and placement services for the “Usahihi Expressway Project,” designed to improve travel efficiency between Nairobi and Mombasa. With Kenyan pension funds holding substantial assets, amounting to Kshs 2.0 trillion as of June 2024, Everstrong’s initiative represents a significant…
Safaricom PLC and Opportunity International have partnered to develop FarmerAI, an innovative AI chatbot to provide smallholder farmers in Kenya with real-time, relevant agricultural best practices. The agricultural sector contributes significantly to Kenya’s GDP (22.4% according to KNBS), and smallholder farmers represent a substantial portion of the farming population. FarmerAI aims to address information gaps faced by these farmers, such as access to timely weather advisories, optimal planting schedules, and effective pest management strategies. AI-Powered Solutions FarmerAI leverages generative AI and localized agricultural insights to provide farmers with crucial information directly through accessible channels like SMS and WhatsApp. This direct-to-farmer…
Labh Singh Harnam Singh Limited (LSHS), a leading bus and truck body manufacturer in East and Central Africa, has been placed under administration, signaling a significant setback for the Kenyan automotive industry. This move comes amidst mounting financial challenges for the company, including a substantial debt to KCB Bank. Impact of Administration The appointment of joint administrators, PVR Rao and Swaroop Rao Ponangipalli, effectively transfers control of the company’s assets and operations from its directors. “Following the appointment, all the affairs and business of the company are being conducted by the joint administrators whose powers extend to all assets and…
The Central Bank of Kenya (CBK) has increased penalties for banks that fail to comply with regulatory guidelines, raising the maximum fine from Ksh2 million to Ksh20 million. This move follows the enactment of the Business Laws Amendment Act and comes amid concerns over banks’ reluctance to lower lending rates despite recent monetary policy easing measures. The Act was enacted into law on 11 December 2024 and became effective on 27 December 2024. This legislation aims to strengthen oversight and ensure fair market practices within the financial sector. Addressing Concerns Over High Interest Rates During the first Monetary Policy Committee…
NCBA Group has published its inaugural Sustainable Development Impact Disclosure (SDID). It is the first African financial institution to adopt the new guidelines released by the Impact Disclosure Taskforce. Developed with the support of J.P. Morgan and Blaylock Van, the report demonstrates NCBA’s commitment to transparency and accountability in advancing sustainable development goals. “NCBA’s leadership in publishing the SDID establishes a new benchmark for transparency and accountability in advancing measurable sustainability goals,” Nyagaka Ongeri, President, Blaylock Van says. In the report, NCBA aims to contribute to 10 UN Sustainable Development Goals, including poverty reduction, quality education, gender equality, and climate…