When Kenya Airways (KQ), the country’s national carrier, reported a profit after tax of Sh513 million in the first half of the financial year ending June 30, 2024, as compared to a loss of Sh21.7 billion loss in the previous period, for the first time in eleven years, the revival of KQ, the pride of Africa, was on. However, the revival is already facing challenges. According to Allan Kilavuka, KQ CEO, the airline has spent a staggering Sh8 billion on aircraft repairs over the past four years. The airline also finds itself embroiled in a complex financial tangle with 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 African continent is on the brink of a health crisis that threatens to affect millions of lives and cost billions of dollars. A recent report by the World Health Organization (WHO) has sounded the alarm on the rising prevalence of hearing loss across Africa, projecting a staggering increase from 40 million affected individuals today to 54 million by 2030. Unveiled at the African Summit on Hearing Impairment in Nairobi, Kenya, the report paints a sobering picture of the current situation. Hearing loss already exacts a hefty toll on the continent, costing an estimated Sh3.48 billion ($27 million) annually. However,…
Today marks the start of the third Project Technical and Steering Committee Meetings of the Conserving Aquatic Biodiversity in the Africa Blue Economy Project, run by the African Union’s Inter-African Bureau for Animal Resources (AU-IBAR), currently taking place in Mombasa, Kenya. The meetings, which are supported by the Swedish International Development Cooperation Agency (SIDA), aim to enhance marine biodiversity protection as well as promote the sustainable use of biodiversity resources across the African continent. The meetings, which are to take place until 9th October 2024, serve as a crucial platform for evaluating the project’s progress, addressing implementation challenges, and developing…
Kenya’s economic landscape is showing signs of a potential shift as inflation rates take an unexpected dip. The latest figures released by the Kenya National Bureau of Statistics paint a picture of economic resilience in the face of global uncertainties. September saw the year-on-year inflation rate plummet to 3.6%, a significant drop from August’s 4.4%. This fall in inflation comes as a breath of fresh air for Kenyan consumers who have been grappling with the rising cost of living. With the cost of living finally easing, consumers can expect a meaningful boost to their purchasing power, paving the way for…
Kenya has partnered with the Food and Agriculture Organization (FAO) and the United Nations Industrial Development Organization (UNIDO) to unveil a pilot project known as the Circular Economy in the County Aggregation and Industrial Parks (CAIPs) as part of a broader plan to provide financial and technical support to farmers while addressing various gaps in their value chains. The one-year pilot, with funding from the Kenyan and Norwegian governments valued at Sh193.13 million ($1.5 million), will first be implemented in Laikipia and Nyamira counties to help banana and livestock farmers tackle the issue of post-harvest losses currently accounting for 40…
The decision by the Monetary Policy Committee (MPC) to adjust the Central Bank Rate (CBR) from 13 per cent to 12.75 per cent in August, continues to trigger ripple effects in the industry. And Equity Bank is the latest to respond by reducing its Reference Rate (EBRR) from 18.24 per cent to 17.83 per cent effective Monday, September 9, 2024. The final interest rate for new Kenya shilling-denominated credit facilities will now consist of the new EBRR rate in addition to a margin, which is currently capped at a maximum of 8.5 per cent per year. This comes months after…
The Competition Authority of Kenya (CAK) recently approved KEDA (Kenya) Ceramics Company Limited’s acquisition of specific assets of Ramoda Ceramics Limited. This represents a notable shift in the competitive landscape of the market for ceramic floor and wall tiles, a sector that has experienced substantial growth in recent years, driven by factors such as urbanization and increased construction activities. KEDA, a prominent player in the manufacturing, sale, and distribution of ceramic tiles in Kenya, will acquire key assets, including a number of properties, plants, and various categories of machinery and equipment, from Ramoda. This follows Ramoda facing financial and operational…
Kenya’s tourism sector has recorded robust growth in revenue during the first half of 2024, making the country a strong appeal as a premier travel destination. According to the Kenya Tourism Board (KTB), Kenya earned a staggering Sh142.91 billion ($1.11 billion) in tourism revenue compared to the Sh136.48 billion ($1.06 billion) generated during the same period in the previous year. There has been a significant growth in visitor numbers to Kenya, with data from KTB, showing that the country welcomed 1.03 million international visitors in the first half of 2024, marking a substantial 21.3 per cent rise compared to the…
NCBA Group PLC has continued to cement its position in the financial services sector by completing the 100% acquisition of AIG Kenya Insurance Company Limited, after holding a minority share in the insurance company for over 18 years. This strategic development marks a milestone for NCBA, as it further solidifies its presence and expertise in the insurance sector. By acquiring AIG Kenya, the group brings a revered insurance business with a legacy spanning over 50 years, distinguished for its comprehensive general insurance solutions catering to corporates, SMEs, and individual clients. It also presents a unique opportunity for synergy and growth…
The Kenya Forest Service (KFS) has recently announced a significant increase in timber permit fees, sending ripples through the timber industry and other affected sectors. Taking effect from July 13, 2024, the cost of acquiring movement permits for transporting timber increased from Sh2,000 to Sh25,570. A breakdown of the new fee structure includes a consignment fee fixed at Sh20,000, the movement permit fee itself which remains at Sh2,000, a VAT of 16% on the fees amounting to Sh3,200, an additional VAT of Sh320 as well as Sh50 service transaction fee that will be charged on the E-Citizen platform, which will…