East Africa |

Kenya Plans to Narrow Fiscal Deficit to 5% of GDP in 2019-20

NAIROBI (Capital Markets in Africa) – Kenya, East Africa’s biggest economy intends to narrow its budget deficit to 5 percent of gross domestic product in the fiscal year beginning in July, from 6.3 percent in the current period. The budget gap is seen at 572.2 billion shillings ($5.62 billion), compared with an estimated 635.5 billion shillings in the 12 months through June, the Treasury said in a draft document on its website. It plans to…

Fracture in Kenyan Ruling Party May Revive Rift Valley Tensions

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) – An alliance that helped deliver Kenyan President Uhuru Kenyatta two terms in office is fracturing, reviving tensions in the country’s Rift Valley region that was wracked by widespread violence a decade ago. The deputy chairman of the ruling Jubilee Party stepped down on Sunday after saying Deputy President William Ruto shouldn’t be allowed to succeed Kenyatta. That undermines an arrangement in which Ruto delivered the backing of his Rift Valley constituents for Kenyatta’s…

Uganda Targets 1,000 Megawatts of New Generation by June 2020

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KAMPALA (Capital Markets in Africa) – Uganda plans to boost power generation capacity by at least 1,000 megawatts by June 2020 to promote industrial growth by adding renewable sources such as wind, solar and biomass to hydropower. Increased generation will enable the East African nation to raise access on the national grid to 30 percent, according to a sector budget document on the Finance Ministry’s website. The World Bank estimates the country’s access at 26.7…

Uganda Alleges Foreign Meddling Amid Call for Cut in U.S. Aid

Posted on by The Editorial Team

KAMPALA (Capital Markets in Africa) – Ugandan President Yoweri Museveni took aim at alleged foreign interference in his country’s politics and railed against the media in his first official address since sporadic protests over the arrest of a pop star-turned-opposition lawmaker. Museveni, who’s ruled since 1986, accused unidentified foreign governments of funding non-governmental organizations that assist the East African nation’s opposition. In his state of the nation address late Sunday, he also declared the need for “discipline…

Kenya Fund Managers Warn New Transaction Tax May Curb Investment

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) – Kenyan fund managers slammed a new tax on financial transactions, saying it risks inhibiting trading and reducing the country’s attractiveness to investors. Forcing the government to rethink the levy would curb the revenue it needs to implement President Uhuru Kenyatta’s Big Four agenda — a development program that seeks to boost agriculture, manufacturing, healthcare and home construction. The tax is one of a raft of levies announced by Treasury Secretary Henry…

Moody’s Sees East African Economies Expanding Fastest Globally

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NAIROBI (Capital Markets in Africa) – East African economies will be among the fastest growing globally over the next two years with rates of 5.5 percent to 7 percent, driven by public spending on infrastructure, according to Moody’s Investors Service. Rwanda and Tanzania are expected to grow at 6.5 percent to 7.5 percent annually, while Uganda and Kenya could see rates of 5 percent – 6 percent. The services sector, which makes up the largest share of…

KCB, Equity Bank Seen as Biggest Winners If Kenyan Rate Caps Go

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) – KCB Group Ltd. and Equity Group Holdings Ltd., Kenya’s largest lenders, will be the biggest beneficiaries from the scrapping of laws limiting the amount of interest banks can charge, according to Exotix Capital Ltd. analyst Faith Mwangi. Treasury Secretary Henry Rotich has started steps to revoke legislation that the International Monetary Fund has said is damaging the economy and banks have blamed for stalling loan growth. The government is racing to meet an…

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