Author: Muindi

Kenyan car manufacturer Mobius Motors Ltd has announced its closure through liquidation. In a shareholder meeting on August 5, 2024, the company decided to voluntarily wind down its operations. KVSK Sastry has been appointed as a liquidator to oversee the process. A creditors’ meeting will be held on August 15, 2024, at the Mobius Factory in Nairobi to approve the liquidator’s appointment. Creditor information will be available for inspection at the company’s offices on August 9, 2024. Government to Rescue Struggling Mobius Motors The Kenyan government is exploring options to save struggling car manufacturer Mobius Motors from liquidation. Principal Secretary…

The Central Bank of Kenya (CBK) reduced its benchmark lending rate by 0.25% to 12.75% on Tuesday. This marks the first rate cut since March 2020, signalling a shift in monetary policy. The decision comes as inflation eases and the Kenyan shilling strengthens. The move aims to stimulate economic growth by making borrowing more affordable for businesses and individuals. “The MPC concluded that there was scope for a gradual easing of the monetary policy stance while ensuring continued exchange rate stability. Therefore, the Committee decided to lower the Central Bank Rate (CBR) to 12.75%,” CBK Governor Kamau Thugge said in…

The Central Bank of Kenya (CBK) has made significant changes to all Kenyan banknotes. Effective immediately, all denominations will feature the signatures of Governor Kamau Thugge and National Treasury Principal Secretary Chris Kiptoo. Additionally, the banknotes will display a new print year of 2024 and incorporate enhanced security features, including colour-shifting threads. The redesign affects all Kenyan banknotes, from the KSh50 to the KSh1,000 notes. However, the CBK has clarified that existing banknotes remain legal tender and will continue to circulate alongside the new designs. “The rest of the features remain the same as those of the series issued in…

Kenya’s inflation rate eased to 4.3% in July, down from 4.6% in June, according to data from the Kenya National Bureau of Statistics (KNBS). On a monthly basis, inflation was -0.2% from 0.4% in June. The decline was primarily driven by falling prices for food and fuel. Key food items such as tomatoes, wheat flour, onions, and maize flour saw significant price reductions. Additionally, a drop in electricity and kerosene prices contributed to a lower Housing, Water, Electricity, Gas, and Other Fuels index. However, a slight increase in gas prices tempered the overall decline. The transport sector also experienced a…

Kenya and Uganda have initiated formal discussions to extend the petroleum products pipeline from Eldoret to Kampala. This project is anticipated to significantly reduce the cost of overland fuel transportation to Uganda and beyond, thereby transforming the region’s fuel import landscape. The talks were commenced between Uganda’s Minister of Energy and Mineral Development, Ruth Ssentamu, with Kenya’s Ministry of Energy officials, led by the State Department for Petroleum PS. Mohammed Liban, and toured Kenya Pipeline Company (KPC) headquarters. The infrastructure initiative involves Kenya constructing a multi-product oil pipeline from Eldoret to the Malaba border, while Uganda will build a connecting…

The Kenya Forest Service (KFS) has increased fees for timber transport permits, effective July 13, 2024. The cost of acquiring a single permit has surged from Ksh2,000 to Ksh25,570. The new fee structure includes a Ksh20,000 consignment fee, a 16% VAT on the consignment fee (Ksh3,200), a Ksh2,000 movement permit fee, a 16% VAT on the permit fee (Ksh320), and a Ksh50 eCitizen transaction fee. All payments must be made through the eCitizen platform. Additionally, KFS has imposed fees on charcoal transport: Ksh30 per bag, plus 16% VAT and a Ksh50 eCitizen fee. Non-wood forest products will also be subject…