Author: Oscar Magu


Banks bet against President Ruto’s 10 percent interest rate prophecy

The third quarter in the banking sector may witness a significant uptick, driven by a government initiative to issue a Kes50 billion infrastructure bond scheduled for 13th November 2023. Kenya introduced this tax-free bond, which extends over six and a half years, with its coupon rate to be determined by the market. This decision followed a two-year bond that garnered only 35.1 percent of bids at 17.9 percent. Evidently, this signals the government’s openness to accept more aggressive bids, which, according to lenders constituting 45.2 percent of bond investors, may reach as high as 20 percent. The KCB Monthly Economic Brief has indicated that bankers

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Murang’a bar owners threaten suit over licensing tiff

Murang’a businessmen are threatening to sue Governor Irungu Kang’ata over selective licensing of liquor stores following push to reduce the number of outlets by up to 70 percent. The governor announced plans to cut the number of bars in the county by blocking licenses to allow only 1,032 out of the 2,971 businesses who had applied. The businesses say there has been no clarity on the process of denying legitimate businesses licenses some of who have been in operation for over 20 years and that imposing an upfront Kes10,000 fee just for application was punitive. The meeting on Wednesday quickly turned chaotic after Deputy County…

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