CMC Motors Group, a key player in East Africa’s automotive industry and the largest distribution network in region for sales, parts and service, has announced plans to gradually cease operations in Kenya, Tanzania, and Uganda. The decision, which is made in compliance with local regulations and existing distributorship agreements, is attributed to persistent market challenges that have made it increasingly difficult to sustain operations. For over four decades, the subsidiary of CMC Holdings Ltd, which was acquired by the Al-Futtaim Group in 2014, has been a cornerstone in the East African agricultural sector, delivering high-quality services and mechanization solutions. The…
Author: Antony Mutunga
Antony Mutunga
Antony Mutunga holds a Bachelors degree in Commerce, Finance from Jomo Kenyatta University of Agriculture and Technology. He previously worked for Altic Investment & Consultancy before he joined NBM team in 2015. His interest in writing ranges from business, economics and technology. He is also our lead researcher in matters business.
The Central Bank of Kenya (CBK) has granted a Payment Service Provider (PSP) license to Kasa Pay Limited, a subsidiary of Remitcore Group. This makes it the first fintech company in the country, excluding telecommunications firms, to hold both a PSP license as well as a remittance and cross-border payments license. The PSP license will allow the subsidiary to offer a comprehensive suite of payment solutions that cater to various needs, including seamless and secure transfers of funds within Kenya and across borders. This will be crucial for individuals and businesses seeking reliable fund transfer services, as it enhances financial…
The government aims to introduce crucial reforms in accordance to the 2025 Budget Policy Statement (BPS) draft. Central to these reforms are the establishment of the Treasury Single Account (TSA) and the transition to accrual accounting, which are to streamline financial operations, optimize resource allocation, and provide a clearer picture of the government’s financial health. Through the TSA initiative, the government seeks to consolidate its bank accounts, enabling more effective management of public funds. The implementation, that is in line with the Public Finance Management Act of 2012, is set to unfold over three years. The rollout will occur in…
After hitting the Sh4 trillion mark in the fiscal year 2024/25, the total budget for the fiscal year 2025/26 is projected at an impressive Sh4.49 trillion according to the draft 2025 Budget Policy Statement (BPS) by the National Treasury and Economic Planning. The National Government is set to receive a substantial portion of the budget, amounting to Sh2.75 trillion, with the executive branch allocated the largest share, Sh2.68 trillion, the parliament, Sh44.6 billion, while the judiciary, which plays a critical role in upholding the rule of law, is allocated Sh28.3 billion. Also, the budget allocates Sh1.33 trillion to Consolidated Fund…
President William Ruto of Kenya and His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, recently signed the Comprehensive Economic Partnership Agreement (CEPA), that not only redefines the trade relationship between Kenya and the UAE but also marks a significant commitment to working together for mutual benefit. As the first of its kind between the UAE and a mainland African country, the CEPA opens the door to a new era of partnership, positioning Kenya as a crucial gateway to East and Southern Africa while enhancing the UAE’s role in strengthening economic ties across the region. Trade between…
Kenyan consumers will face higher fuel costs this month as the Energy and Petroleum Regulatory Authority (EPRA) has adjusted the retail petroleum prices upwards for the period January 15 to February 14, 2025. The price of key petroleum products—Super Petrol, Diesel, and Kerosene—have been slightly increased, signalling a rise in the cost of living for households and businesses alike. For this pricing cycle, the maximum pump price of Super Petrol has increased by Sh0.29 per litre to Sh176.29 per litre, while Diesel has risen by Sh2.00 per litre to stand at Sh165.06. Kerosene, often regarded as a vital household fuel…
Limuru Tea PLC has issued an announcement projecting a declining trend in profit. In compliance with the Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulations, 2002, the company has issued a profit warning for the financial year ended December 31, 2024. The company anticipates a decline of over 25% in profit after tax compared to its performance for the year ending December 2023. According to the board of directors, this projected drop in profitability is largely attributed to rising operational costs, which have been compounded by escalating labor expenses and difficult market conditions. These factors have exerted significant pressure…
Kenya’s financial services and insurance sector experienced a significant decline in GDP growth, expanding by only 4.7% in the third quarter of 2024, a stark contrast to the 15.5% growth observed during the same period in the previous year according to data from the Kenya National Bureau of Statistics (KNBS). This deceleration was driven by shifting economic forces, including adjustments in interest rates, evolving credit conditions, and changes in money supply. To navigate these challenges, the Central Bank of Kenya (CBK) lowered the Central Bank Rate (CBR) from 13% to 12.75% in July 2024, maintaining this level through August and…
In recent months, Kenya’s private sector has demonstrated a gradual yet encouraging recovery as a result of increased sales. However, in December 2024 private sector activity declined as compared to November 2024. According to the Stanbic Bank Purchasing Managers’ Index (PMI), which measures the performance of agriculture, mining, manufacturing, services, construction and retail sectors from a survey of 400 companies, the index decreased from 50.9 in November to 50.6 in December 2024. Despite the dip, with the index still above 50.0, it was an indication of sustained private sector expansion. Since September 2024, when the index fell to 49.7, it…
East Africa’s mergers and acquisitions (M&A) market has continued on its declining trend, as at the end of Q3, 2024, the total number of M&A deals had failed to reach 100. After recording a low total number of 102 deals in the same period in 2021, according to data from DealMakers Africa, the region recorded a mere total of 77 deals valued at Sh104.53 billion ($810.06 million) during the first three quarters of 2024. Compared to the previous years, East Africa’s M&A activity in 2024 showed a notable decline in not only the number of deals but the total deal…