Author: Muthoga Mungania

Tanzania has defended a controversial agreement to import electricity from Ethiopia in a bid to address the frequent power outages. The deal is a power sales agreement for 100 megawatts of electricity by Ethiopia to Tanzania, after a three-way negotiation between Ethiopian Electric Power (EEP), the Tanzania Electric Supply Company (TANESCO), and the Kenya Electricity...

Kenya has lost about $15.5 million in tobacco exports after British American Tobacco (BAT) shutdown its operations in Khartoum following deadly war in the country. BAT’s plant in Khartoum, Sudan, which sourced unprocessed tobacco from Kenya for cigarette production, shut down soon after violent clashes broke out between the Sudanese army and a paramilitary group...

Equator, a climate venture capital firm has closed a $55 million fund focused on supporting environment-tech startups in sub-Saharan Africa on Tuesday. The firm which is based in the United Kingdom and Kenya received support of its first fund from International Finance Corporation (IFC), Proparco, British International Investment (BII), the Global Energy Alliance for People...

Kenyan employers and employees are preparing for more difficult financial times, as the National Social Security Fund (NSSF) Act of 2013 enters its third year of implementation effective February last month. The contribution doubled from $16.72 (Ksh2,160) to $33.44 (Ksh 4,320) for all employees with gross earnings of at least $557.3 (Ksh72,000) starting February 2025.The...

Kenya is in talks with Thailand to reopen its borders for 64 of its citizens who were rescued from human trafficking in Myanmar to be returned to Nairobi. The Ministry of Foreign and Diaspora Affairs has said that the 64 Kenyans rescued in ‘scam compounds’ in Myanmar are awaiting entry into Thailand to be repatriated...

Kenya has raised $1.5 billion from creditors in the latest Eurobond sale to help clear its public debt stock.Citigroup Inc. and Standard Bank Group Ltd. are handling the sale of the 11 year notes which will mature in March 2036 with an interest of 9.5 percent. Earlier this week, Kenya announced that it would sell additional dollar bonds to pay for the 2027 repurchase of $900 million in eurobonds. Kenya has been managing its debt maturity profile since last year, when its finances were severely strained.The country has gained breathing room against large debt repayment requirements in April and May…

Kenyan chief executive officers (CEOs) say increased taxation, high energy costs and reduced consumer demand are a threat to economic growth. A new survey published on Monday by the Central Bank of Kenya (CBK) shows that although the executives are confident in Kenya’s economic prospects, they are cautious of unpredictable tax regimes and increased costs of doing business.The survey covers over 1,000 CEOs from manufacturing, agriculture, tourism, hotels and restaurants, financial services, professional services, ICT and telecommunications, among others.The CEOs reported improved optimism in growth prospects for the Kenyan economy in the next 12 months on account of expectations of…

Uganda is considering a lower budget for the 2025–2026 fiscal year as technocrats attempt to strike a compromise between expenditure objectives and numerous funding shortages. This comes in the face of mounting state debt and growing electoral anxiety. Despite sharing similar issues, other neighbouring East African countries, including Kenya and Tanzania, have declared plans to increase spending. Uganda’s total resource envelope for the fiscal year 2025–2026 was valued at USh57.4 trillion ($15.5 billion) at the end of December. Earlier last month, it was increased to USh66 trillion ($17.8 billion) by adding more spending items that the Cabinet had supported.Uganda’s current…

United States President Donald Trump has cancelled five large contracts and grants in Kenya totalling $251.5 million (Sh32.5 billion). Mr Trump terminated three USAID contracts in Kenya totalling Sh28.36 billion ($219.5 million) and two grants totalling Sh4.2 billion ($32.72 million), according to disclosures made in court documents. In the upcoming weeks, more terminations are anticipated...

Kenya has deferred $682.2 million in funding expected from the International Monetary Fund (IMF) under the ninth review to the next fiscal year. This indicates plans to enter a new financing agreement with the multilateral lender once the current one expires in April. The National Treasury has disclosed in the latest Budget Policy Statement for...

Ethiopian state-owned telecommunications firm Ethio Telecom recorded a half-year revenue rise of 43.3 percent to 61.9 billion birr ($491.57 million). With 1.01 trillion birr ($7.9 billion) in transactions in just six months—nearly the same amount as the previous three years from Telebirr, the mobile money service offered by Ethiopian telecom supported the increased earnings. Earnings...

South Sudan’s President Salva Kiir has fired two of his five vice presidents, spy chief among other senior officials in recent reshuffle of his government. The two vice presidents who have been removed from office are James Wani Igga and Hussein Abdelbagi. Ms Josephine Lagu and Mr Benjamin Bol Mel have taken the places of...

Analysis of the data shows that in the year ended December 2023, Nigeria received $368 million followed by Tanzania scoring $337 million from the United States. Uganda received $295 million while South Africa had $279 million from the United States Agency for International Development (USAID). After taking office in January, U.S. President Donald Trump ordered...

The United Nations (UN) has warned that the conflict in the Democratic Republic of Congo (DRC) is likely to worsen and escalate to other countries in the region. UN human rights chief Volker Türk said on Friday that he was disturbed by the conflict in the eastern DRC and the many reports of sexual abuse...

Uganda’s central bank has held its main lending rate at 9.75 percent on Thursday, citing inflation looked contained despite uncertainties on the global stage. The monetary policy committee met on Thursday and kept the rate at 9.75 percent as it warned it might start tightening policy because of Donald Trump’s protectionist policies and their potential...

The Central Bank of Kenya (CBK) has cut its benchmark lending rate for the fourth monetary policy meeting in a row to 10.75 per cent on Wednesday. The Central Bank Rate (CBR) was lowered by 50 basis points to 10.75 percent, in a bid to promote cheaper loans to support economic growth. “The committee noted...

African Trade and Investment Development Insurance (ATIDI) is eyeing entry into the Northern and Southern African countries led by Egypt, Tunisia and Mauritania as part of its expansion plans. The multilateral development insurer, which has over 24 member countries, including Kenya, Uganda and Tanzania, said it is looking to expand to Egypt first and follow...

The African Development Bank Group (AfDB) is exploring a new currency model that is backed by African minerals to mitigate volatility risks and support the continent’s energy transition goals. In a new paper published by AfDB and KPMG South Africa, resource-rich countries can overcome foreign currency volatility by pooling together their minerals into a non-circulating...

Official data from the Kenya National Bureau of Statistics (KNBS) published on Friday (31.01.25) show inflation rose from three per cent in December last month, attributed to higher costs of food and transport. “The year-on-year headline inflation, as measured by the Consumer Price Index (CPI), stood at 3.3 per cent in January 2025,” KNBS stated...

London-based Actis has sold Java House, East Africa’s coffee chain to two private equity firms, a new notice shows.  According to a notice issued by the regional antitrust authority, the Comesa Competition Commission, Alterra Capital is expected to acquire the majority of the company’s shares while Phatisa would retain controlling rights despite its minority interest....

South Sudan’s central bank has threatened to terminate Stanbic Bank’s licence in a dispute concerning millions of dollars that were transferred to an airline’s account and later reversed. In a letter to Stanbic Bank, the Bank of South Sudan (BoSS) Governor John Ohisa directed the lender’s branch in the country to cooperate with the investigating...

Several passengers are stranded at the Jomo Kenyatta International Airport in Nairobi after airlines suspended flights to Somalia over high taxes. The Somali Airlines Operators Association has said in a statement that it has had disagreements with the Ministry of Transport and the Somali Civil Aviation Authority (SCAA) leading to the grounding of all flights...

First order of business for newly inaugurated United States President Donald Trump has been to enact a 90 day pause of foreign development aid. Mr Trump has said that the nation is pausing foreign assistance as it assesses efficiencies and whether they align with his policies. The move has left millions of dollars in aid...

Curtains close for East Africa’s automotive powerhouse CMC Motors Group after announcing it is closing its operations in Kenya, Uganda and Tanzania. The automotive firm said it has been facing several economic challenges “including economic pressures, currency depreciation, and rising operational costs”. “However, despite restructuring efforts and a transformation programme initiated in 2023, the market...

Kenya-based venture capital firm Purple Elephant has secured $4.5 million in seed capital, making it one of Africa’s biggest rounds of tourism-tech funding. The venture studio designs and builds climate-focused startups to improve sustainable travel and touring in Africa through regenerative tourism.  Regenerative tourism is a type of sustainable travel that aims to improve and...

The World Bank has suspended its funding to Gabon once again due to payment arrears from its earlier loans. Gabon’s Ministry of Public Accounts said in a January 10th statement that the country had accrued debt arrears of $26.7 million (17 billion CFA Francs) . The latest suspension follows that of June on unpaid bills....

Frelimo party’s Daniel Chapo has been sworn in as Mozambique’s fifth president after a disputed election that left several casualties during months-long protests. The President-elect took his oath of office on Wednesday, January 15 in a small inauguration ceremony attended by few of his supporters. The October elections have been decried as rigged by opposition...

East Africa received the most funding from startup investors for the second year in a row, attributed to more investment directed to Kenya, a new report shows. The Big Deal Africa report shows that the Eastern African region received $725 million in 2024, representing an 18 percent drop from the year before. “Kenya alone ($638m)...

Several companies have exited Zambia and Zimbabwe due to currency instability and challenging economic conditions. Among the latest firms to leave in 2025 are regional supermarket chain Choppies and French dairy processor Lactalis International. Choppies recently announced its departure from the Zimbabwean market, citing the hostile economic environment marked by currency instability and the collapse...

Tanzania’s central bank has maintained it benchmark rate at six percent in the latest review, holding it for the third consecutive meeting. The monetary policy committee (MPC) met on January 7th, 2025 and after reviewing the economic and inflationary factors decided not to review the rate in a bid to keep inflation below its target...