<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1307" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-scaled.jpg" alt="" class="wp-image-505609" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-1536x980.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows the central business district in downtown Nairobi, Kenya February 18, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, Aug 12 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s new Finance Minister John Mbadi said on Monday he would clean up the bloated government payroll and carry out tax reforms to cut spending and bolster the government&#8217;s finances.



The East African nation, which has been rocked by deadly protests over the last two months, faces gaping budget deficits and needs to boost revenue collection to meet conditions set by the International Monetary Fund for a lending programme.



&#8220;Anyone who is standing in the way of that reform, please give way,&#8221; Mbadi said, referring to a long-delayed project to link government payrolls with technology systems to weed out ghost workers and pensioners. &#8220;Payroll reforms must be done.&#8221;



Mbadi said he would also speed up reforms at the Kenya Revenue Authority, which collects taxes.



&#8220;If we could increase our revenue collection to GDP by just about 3%, I am sure that would give us almost 400 billion shillings additionally,&#8221; he said, pledging to continue with his predecessor&#8217;s tax amnesty programme.



The amnesty, which allows those who pay overdue taxes to gain exemption from penalties, has so far netted about 43 billion shillings ($334.63 million), Mbadi said.



($1 = 128.5000 Kenyan shillings)



(Reporting by Duncan Miriri; editing by Mark Heinrich)

General view of the central business district in Nairobi

Kenya’s finance minister eyes tax, payroll changes to cut deficits

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Aug 12 (Reuters) &#8211; The Ugandan shilling firmed slightly on Monday amid a slump in appetite for hard currency from across board, traders said.



At 0915 GMT commercial banks quoted the shilling at 3,718/3,728, compared to Friday&#8217;s close of 3,722/3,732.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

GettyImages-924883576-1

Ugandan shilling firms slightly on weaker demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1260" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-scaled.jpg" alt="" class="wp-image-422280" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-300x185.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-820x505.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-146x90.jpg 146w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-768x473.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CU3BVSAMDJMBHIKHFANV7T7UCQ-1536x945.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya Airways planes are seen through a window as the Jomo Kenyatta international airport reopens after flights were suspended following the coronavirus disease (COVID-19) outbreak in Nairobi, Kenya August 1, 2020. REUTERS/Njeri Mwangi/File Photo</figcaption></figure>



NAIROBI, Aug 12 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s main aviation union said it would&nbsp;call a strike&nbsp;from next Monday over a proposed deal with an Indian company to develop the country&#8217;s biggest airport &#8211; industrial action that could cause major disruption in the east African travel hub.



The Kenya Aviation Workers Union, which represents airport workers, said the proposed agreement announced last month with India&#8217;s Adani Airport Holdings would lead to job losses and bring in non-Kenyan workers.



It called on the government to scrap what it referred to as the&nbsp;&#8220;unlawful intended sale of JKIA (Jomo Kenyatta International Airport) to Adani Airport Holdings of India&#8221; in a seven-day strike notice issued on Monday.



Kenya&#8217;s government has said the airport is not for sale and that no decision had been made on whether to proceed with what it called a proposed public-private partnership to upgrade the hub.



An Adani Group spokesperson could not immediately be reached for comment.



Any walkout could also cause significant disruption to national carrier Kenya Airways.



&#8220;We shall reconsider our intention to engage in industrial action &#8230; only if the Adani Airport Holdings Limited&#8217;s deal is abandoned in its entirety,&#8221; Kenya Aviation Workers Union Secretary General Moss Ndiema said in the strike notice.



He repeated a call for the entire board of the Kenya Airports Authority (KAA) to resign.



The KAA confirmed on Monday that it had received a strike notice. &#8220;We are hopeful that a resolution can be reached through negotiation,&#8221; spokesperson Elijah Miano said.



The authority has said Adani would add a second runway at JKIA and upgrade the passenger terminal.



Kenya Airways Chief Executive Allan Kilavuka did not respond to a request for comment.



The government said in a statement on the Adani proposal last month that JKIA was stretched beyond its capacity of 7.5 million passengers a year and in urgent need of improvements, citing incidents like leaking roofs which it said had caused &#8220;international embarrassment&#8221;.



The statement said modernising JKIA could cost $2 billion, which the government was &#8220;constrained to fund due to the current tight fiscal situation&#8221;.



It said Adani&#8217;s offer was currently being reviewed. If a deal is agreed, the government said there would be safeguards to ensure Kenya&#8217;s national interests are protected.



A nationwide youth-led protest movement that emerged in June over proposed tax hikes has also criticised a perceived lack of transparency over the proposed Adani deal.



Last month police blocked protesters from accessing JKIA, which they had aimed to shut down.



(Reporting by Humphrey Malalo; Additional reporting by Aditya Kalra and Dhwani Pandya;Writing by Hereward Holland and Elias Biryabarema;Editing by Alexander Winning and Andrew Heavens)

FILE PHOTO: The coronavirus disease (COVID-19) outbreak in Nairobi

Kenya aviation union says to strike from Aug 19 over Adani deal

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="497" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-820x497.jpg" alt="" class="wp-image-517983" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-820x497.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-300x182.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-768x466.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-1536x931.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/W7PY2CC6ZJLRDJORMQZHJQDQJA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Congolese people carry their belongings as they flee from their villages around Sake, in Masisi territory, following clashes between M23 rebels and the Armed Forces of the Democratic Republic of Congo, toward Goma, North Kivu province, Democratic Republic of Congo, February 7, 2024. REUTERS/Arlette Bashizi/File Photo</figcaption></figure>



KINSHASA, Aug 11 (Reuters)&nbsp;&#8211;&nbsp;Democratic Republic of Congo said on Sunday it had begun talks with Zambia a day after its southern African neighbour sealed their common border, blocking a key export route for Congo, the world&#8217;s second largest copper producer.



Zambian Trade Minister Chipoka Mulenga announced a temporary border closure on Saturday after a Congolese ban on imported soft drinks and beer led to demonstrations by Congolese transporters in the town of Kasumbalesa on the Zambian border.



&#8220;Talks between the Congolese and Zambian governments have started since this Sunday via videoconference to lead to the rapid reopening of the borders,&#8221; the Congolese trade ministry said in a statement.



&#8220;In the hours that follow, the two parties will meet in Lubumbashi in Haut-Katanga to find a lasting solution regarding trade.&#8221;



Congo&#8217;s Trade Minister Julien Paluku Kahongya said in a statement earlier on Sunday that his ministry had received no formal notice of a trade dispute from Zambia before it announced the closure. In the statement, he detailed the two countries&#8217; trade agreement and its dispute settlement mechanisms.



&#8220;There is to date no dispute brought to (the ministry&#8217;s) attention in writing or through diplomatic channels,&#8221; he said. &#8220;It is willing, if necessary, to examine any request made by the Zambian party bound by the agreement, which also prohibits any retaliatory measures.&#8221;



Congo was the world&#8217;s no. 2 producer and no. 3 exporter of copper in 2023, producing about 2.84 million tons.



Zambia is a key export route for the Central African country. Most of Congo&#8217;s copper exports pass through the town of Kasumbalesa and into Zambia.



(Reporting by Ange Kasongo Adihe; Additional reporting by Chris Mfula in Lusaka; Writing by Portia Crowe; Editing by Andrew Cawthorne)

FILE PHOTO: Thousands more flee rebel advance in eastern Congo

DRC says it is in talks with Zambia to quickly reopen closed border

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="526" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-820x526.jpg" alt="" class="wp-image-517965" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-820x526.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-140x90.jpg 140w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-768x493.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-1536x985.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/I7TTIRXOGFK2FPH7MOFJH3EWVI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kigali, Rwanda, August 11, 2024. REUTERS/Jean Bizimana</figcaption></figure>



KIGALI, Aug 11 (Reuters) &#8211; Rwanda&#8217;s President Paul Kagame was sworn into office on Sunday for a five-year term, after a landslide win in last month&#8217;s election extended his near quarter century in office.



The 66-year-old former rebel leader won the July poll with 99.18% of the vote, after eight other candidates including his most vocal critics were barred by the electoral commission.



Kagame won acclaim from Western and regional leaders for helping end the 1994 genocide and turning Rwanda into an attractive investment and aid destination. But his reputation has been sullied by&nbsp;allegations&nbsp;of rights abuses and suppression of dissent plus supporting rebels in Democratic Republic of Congo &#8211; all accusations he has denied.



&#8220;For the last 30 years, our country has been good work in progress. This new mandate means the beginning of even more hard work,&#8221; Kagame said.



&#8220;That expectation to keep improving is not a dream, it is a reality. We can do it and we will do it.”



Sunday&#8217;s swearing-in took place at Kigali&#8217;s Amahoro national Stadium, with thousands in attendance, many wearing T-shirts in the yellow, green and blue colours of the national flag.



Kagame received a military 21-gun salute, accompanied by cheers from the crowd. Twenty-two heads of state from African countries were in attendance.



Rwanda&#8217;s constitution was changed in 2015, allowing Kagame to extend his time in office.



The two men who vied against him last month &#8211; Frank Habineza from the Democratic Green Party and independent Philippe Mpayimana &#8211; both conceded defeat in the election, which rights groups say was marred by a crackdown on media, the opposition and civil society groups.



A government spokesperson repeatedly rejected such criticism during the election period.



(Writing by George Obulutsa; Editing by Andrew Cawthorne)

Rwanda’s President Paul Kagame’s swearing-in ceremony at the Amahoro Stadium, Gasabo District of Kigali

Rwanda’s President Kagame sworn in to extend lengthy tenure

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UJBRZT5PTNNC3BEOYHLK6E2UQQ-820x521.jpg" alt="" class="wp-image-516610" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UJBRZT5PTNNC3BEOYHLK6E2UQQ-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UJBRZT5PTNNC3BEOYHLK6E2UQQ-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UJBRZT5PTNNC3BEOYHLK6E2UQQ-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UJBRZT5PTNNC3BEOYHLK6E2UQQ-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UJBRZT5PTNNC3BEOYHLK6E2UQQ-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UJBRZT5PTNNC3BEOYHLK6E2UQQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Somalia&#8217;s President Hassan Sheikh Mohamud speaks during an interview with Reuters, in his office in Mogadishu, Somalia February 20, 2024. REUTERS/Feisal Omar/File Photo</figcaption></figure>



MOGADISHU, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Somalia&#8217;s cabinet approved a bill on Thursday that, if confirmed by parliament, will revert the country&#8217;s election system to universal suffrage for the first time in decades, ending a process of indirect voting, the government&#8217;s spokesperson said.



Amid widespread insecurity caused by an Islamist insurgency and weak state structures, in recent years lawmakers voted for the president, while clan heads and elders elected lawmakers in both the federal government and regional states.



The country had initially been scheduled to move to direct voting in 2020, but protracted squabbles among politicians and persisting insecurity across the country forced the government to retain the indirect ballot.



&#8220;The election rules will lead the country to one person one vote nationally,&#8221; government spokesperson Farhan Jimale said in a statement.



&#8220;(This) will give the citizens the power to vote and elect for the first time after 55 years. It is a historic day&#8221; he said.



The policy was announced last year by President Hassan Sheikh Mohamud, who was elected by lawmakers for a five-year mandate in May 2022.



Its roll-out faces significant logistical and security challenges because of the lack of infrastructure and al Shabaab, an Islamist militant group, maintains control over large swathes of the country.



(Reporting by Abdi Sheikh; Writing by Hereward Holland; Editing by Toby Chopra)

FILE PHOTO: Somalia’s President Hassan Sheikh Mohamud speaks during an interview with Reuters, in his office in Mogadishu

Somalia’s cabinet approves bill for universal suffrage

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="521" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg" alt="" class="wp-image-516586" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-768x488.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-1536x976.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller handles U.S. dollar banknotes and Kenya shilling banknotes inside the cashier&#8217;s booth at a forex exchange bureau in downtown Nairobi, Kenya, February 16, 2024. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s currency is forecast to strengthen against the dollar in the next week to Thursday, while Ghana&#8217;s, Nigeria&#8217;s and Zambia&#8217;s are expected to be relatively stable, and Uganda&#8217;s could fall, traders said.



<h2 class="wp-block-heading" id="h-kenya">KENYA</h2>



Kenya&#8217;s shilling could gain ground, helped by remittances and offshore dollar inflows to buy government bonds.



Commercial banks quoted the shilling at 128.50/129.50 per dollar, compared with last Thursday&#8217;s closing rate of 129.00/130.00.



&#8220;It will remain fairly supported, with a bias to a stronger shilling. We might see some attraction on the upcoming infrastructure bond sale, it might attract some foreign investor flows,&#8221; one trader said.



Kenya&#8217;s central bank is selling infrastructure bonds worth a total of 50 billion shillings this month.



<h2 class="wp-block-heading" id="h-ghana">GHANA</h2>



Ghana&#8217;s cedi is seen trading relatively stable next week on matched demand and supply on the interbank market.



LSEG data showed the cedi trading at 15.54 to the dollar, from 15.48 at last Thursday&#8217;s close.



&#8220;We expect the cedi to remain stable at the current levels, barring any resurgence of aggressive bidders on the market,&#8221; said Selasi Kabo, a forex trader at Stanbic Bank Ghana.



&#8220;The local unit traded relatively stable against the dollar in the past week, with very little activity between market makers,&#8221; said Sedem Dornoo, a senior trader from Absa Bank Ghana.



&#8220;Up ahead, we could see some pressure on the cedi in the next few weeks given upcoming coupon payments on the restructured bonds, as coupon recipients may look to purchase hard currency,&#8221; he added.



<h2 class="wp-block-heading" id="h-nigeria">NIGERIA</h2>



Nigeria&#8217;s naira is expected to trade around current levels after the central bank intervened in the market this week to ease pressure on the currency.



LSEG data showed the naira was quoted at 1,580 to the dollar on the official market on Thursday, compared with around 1,625 a week ago. The unit sold at about 1,620 in street trading on Thursday.



On Wednesday the central bank sold $876 million at 1,495 naira to the dollar at its first retail auction to end users. The naira was quoted at 1,628 to the dollar before the auction result was announced.



&#8220;The sale of dollars directly to retail end users at a below market rate will see the recent pressure on the naira cool off,&#8221; one trader said.



<h2 class="wp-block-heading" id="h-zambia">ZAMBIA</h2>



Zambia&#8217;s kwacha is expected to hold steady in the coming week on improved dollar inflows and reduced demand for hard currency.



The currency of Africa&#8217;s second-largest copper producer traded at 26.05 to the dollar on Thursday, from 25.95 at the close of business a week ago.



&#8220;The local unit is likely to remain stable with a bias to post minor gains on improved market liquidity amid a slowdown in importer (dollar) appetite,&#8221; Zambia National Commercial Bank said in a note.



<h2 class="wp-block-heading" id="h-uganda">UGANDA</h2>



Uganda&#8217;s shilling is seen trading with a moderately weakening tone on the back of an interest rate cut by the central bank.



Commercial banks quoted the shilling at 3,725/3,735 to the U.S. dollar, compared to last Thursday&#8217;s close of 3,730/3,740.



&#8220;There will be a bit of a negative sentiment from the rate decision that will negatively weigh on the shilling, but I don&#8217;t anticipate a significant movement,&#8221; one trader said.



On Wednesday the Bank of Uganda cut its benchmark lending rate by 25 basis points, saying a recovery in the shilling had led to an improvement in the inflation outlook.



(Reporting by George Obulutsa, Christian Akorlie, Elisha Bala-Gbogbo, Elias Biryabarema and Chris MfulaEditing by Alexander Winning)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenya’s currency seen strengthening, Ghana’s steady

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-820x429.jpg" alt="" class="wp-image-516568" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via Reuters</figcaption></figure>



NAIROBI, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Police fired tear gas to clear pockets of anti-government demonstrators from the centre of Kenya&#8217;s capital Nairobi on Thursday, as their protest movement sought to capitalise on earlier concessions and compel President William Ruto to resign.



The &#8220;Nane Nane&#8221; march, meaning &#8220;eight eight&#8221; in reference to the date, follows weeks of similar pro-reform protests that saw Ruto scrap planned tax hikes and overhaul his cabinet.



The youth-led nationwide protests began peacefully in June before turning violent, and more than 50 people have been killed.



Shops were shut and streets left deserted after riot police set up road blocks and threw tear gas canisters to disperse handfuls of protesters across Nairobi&#8217;s financial district. Police fired tear gas at one group of a dozen protesters chanting &#8220;Ruto must go&#8221;, a Reuters journalist reported.



A lone rag-picker was seen gathering up some of the canisters, occasionally wincing as some still appeared to be hot.



At least three journalists were wounded when police fired tear gas canisters close to them, the International Press Association of East Africa, which represents hundreds of journalists in the region, said on X.



In what has been the biggest crisis of his two years in office, Ruto bowed to pressure and shelved the new taxes in June after some demonstrators briefly stormed parliament.



Ruto fired his entire cabinet apart from the foreign minister last month, a victory for activists and protesters who had demanded sweeping changes.



Ruto then named opposition members to his cabinet, but activists criticised the move as a corrupt deal and reiterated demands that he resign. They called for far-reaching reforms to tackle corruption and for regional county and national governments to improve service delivery.



Ruto has said the new cabinet reflects national unity and will address the demands of the protest movement. He has promised to investigate alleged abuses by the police during demonstrations but has broadly defended their conduct.



Ruto&#8217;s reconstituted cabinet was sworn in on Thursday.



&#8220;Where Kenya is today, while competition is healthy and good, there is a moment where the interest of a nation is greater than the interest of a political formation,&#8221; he said in a speech after the ministers were sworn in.



The protests have no official leaders and have been mostly organised online.



Ruto has stepped up criticism of them after initially praising demonstrators for being peaceful.



&#8220;We are a proudly democratic country, based on the firm foundation of the rule of law. There is no room for anarchy, chaos and violence,&#8221; Ruto said in Embu County on Wednesday.



The Kenyan police asked people to avoid crowded areas ahead of Thursday&#8217;s protests and said it was deploying adequate personnel across the country.



(Reporting by Bhargav Acharya, Humphrey Malalo, Nelson Aruya and Jeff Kahinju, Editing by Hereward Holland, William Maclean)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_APRKGTRBQVIBVAXDNA2LHTJGC4

Kenya police use tear gas to clear pockets of protesters in Nairobi

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="728" height="485" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI.jpg" alt="" class="wp-image-422769" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/CORIUWLHAJI4LNBBJBT32ZAVTI-135x90.jpg 135w" sizes="auto, (max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Kenya Central Bank Governor Patrick Njoroge displays Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi, Kenya, June 3, 2019. REUTERS/Baz Ratner</figcaption></figure>



NAIROBI, Aug 8 (Reuters) &#8211; Kenya&#8217;s shilling was stable on Thursday, with dollar inflows from remittances and non-governmental organisations meeting importer demand.



At 0810 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, the same level it closed at on Wednesday.



(Reporting by George Obulutsa, Editing by Bhargav Acharya)

Kenya Central Bank Governor Patrick Njoroge displays the newly designed Kenyan shilling bank notes during a news conference at the Central Bank in Nairobi

Kenyan shilling stable; remittances help meet importer demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-820x573.jpg" alt="" class="wp-image-516475" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/6C4MZYOVDRPGPIB65MJOQGNVLA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ethiopian Prime Minister Abiy Ahmed speaks in parliament during a session to approve the country&#8217;s 2024/25 budget, in Addis Ababa, Ethiopia, July 4, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Aug 8 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s securities exchange is expected to start operations in October, its chief executive was quoted as saying by state-affiliated media on Thursday.



The establishment of a bourse is part of Prime Minister Abiy Ahmed&#8217;s push to open up the country &#8211; which is heavily controlled by the state &#8211; to greater private investment.



All human resource and technological requirements for the bourse will be in place by October, the bourse&#8217;s CEO Tilahun Esmael Kassahun was quoted as saying by Fana Broadcasting.



Abiy said in February that the government was discussing the&nbsp;sale of 10% of state-owned&nbsp;telecoms company Ethio Telecom via the stock exchange.



Ethio Telecom held a monopoly before a consortium led by Kenya&#8217;s Safaricom won the country&#8217;s first private telecoms licence and started commercial operations in 2022.



Ethiopia&#8217;s economy is still grappling with the legacy of being a command economy for decades, but Abiy&#8217;s push since 2018 towards more private sector involvement has been notable for being more ambitious than previous attempts at opening up.



In late July,&nbsp;Ethiopia floated its currency&nbsp;ahead of securing International Monetary Fund support, a step that needed to happen before a long-delayed debt restructuring could begin.



(Writing by George Obulutsa; Editing by Edwina Gibbs)

FILE PHOTO: Ethiopia’s Parliament approves 2024/25 fiscal year budget

Ethiopia’s securities exchange to start operations in October – media

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, Aug 7 (Reuters) &#8211; Uganda&#8217;s central bank reduced its key lending rate by 25 basis points to 10.00% on Wednesday, saying a recovery in the shilling currency had led to an improvement in the inflation outlook.



The shilling hit a record low in late February, but has risen by more than 6% against the U.S. dollar since then, meaning there is less risk that a recent rise in inflation will prove to be persistent.



Inflation rose to 4.0% year-on-year in July, still below the central bank&#8217;s 5% medium-term target but up from 2.8% in January.



&#8220;The MPC (Monetary Policy Committee) noted that &#8230; the adverse impact of the past external shocks has abated and there has been some progress in moderating risks of inflation persistence,&#8221; Central Bank Deputy Governor Michael Atingi-Ego told a news conference.



&#8220;The inflation projection has been revised slightly downwards relative to the June 2024 forecast &#8230; largely due to a lesser depreciated shilling exchange rate.&#8221;



Atingi-Ego attributed the recent uptick in inflation to sectors such as passenger transport, accommodation, sports and recreation.



He said the Bank of Uganda expected inflation to continue rising moderately in the next four months due to seasonal factors, but to stabilise around the target of 5% by the first quarter of 2025.



At the bank&#8217;s last monetary policy meeting in June it expected inflation to only stabilise around 5% in the second half of next year.



Atingi-Ego noted there had been a pickup in Uganda&#8217;s economic growth, which averaged 6.7% in annual terms in the last two quarters of fiscal year 2023/24 compared with 5.3% growth in the previous two quarters.



The bank&#8217;s growth forecast for the 2024/25 fiscal year that started in July remains unchanged, at between 6.0% and 6.5%.



&#8220;It was appropriate to reduce slightly the degree of monetary policy restrictiveness,&#8221; Atingi-Ego said.



(Writing by Bhargav Acharya; Editing by Aexander Winning and David Holmes)

Uganda cuts key rate as shilling recovery helps inflation outlook

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg" alt="" class="wp-image-516139" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/43YFXIZ3X5PSHBQY3FVDOZWFFI-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: A truck exits the mine after collecting ore from 516 metres below the surface at the Chibuluma copper mine in the Zambian copperbelt region, January 17, 2015. REUTERS/Rogan Ward/File Photo</figcaption></figure>



LUSAKA, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s proposed minerals regulation law could deter investment and deliver a &#8220;fatal blow&#8221; to plans to raise annual copper output to 3 million tons, two mining bodies said on Wednesday.



Zambia&#8217;s government has proposed a new Minerals Regulation Commission Bill, which seeks to &#8220;regulate and monitor the development and management of mineral resources&#8221; in Africa&#8217;s second-biggest copper producer.



But Zambia&#8217;s Chamber of Mines (ZCM), the main mining industry body, and the Association of Zambian Mineral Exploration Companies (AZMEC) said in a joint statement some parts of the proposed law &#8220;will drive up the perception of investment risk in Zambia&#8221;.



&#8220;Unfortunately, due to&#8230;the prospect of forced &#8216;free carry&#8217; acquisitions by the state of stakes in new ventures, this Bill will seriously undermine property rights,&#8221; the mining industry bodies said.



&#8220;The Bill also grants unaccountable and arbitrary discretionary decision making powers to individual regulators, which present obvious future corruption risks,&#8221; they added.



Zambia&#8217;s mines ministry was not immediately available to comment.



President Hakainde Hichilema&#8217;s government, elected in 2021, has sought to repair the country&#8217;s investment reputation and ramp up copper production, which was impacted by the seizure of Konkola Copper Mines from Vedanta by the previous administration in 2019.



The new government has handed the company back to Vedanta as it pushes to raise copper output to 3 million tons per year within the next decade to take advantage of growing demand for the metal, which is key to the global shift to cleaner sources of energy.



Copper output slumped to 698,000 tons in 2023 from 763,000 tons the previous year, data from the Zambia Chamber of Mines showed.



Mining majors such as Barrick Gold and First Quantum Minerals are investing billions of dollars into their Zambian copper assets.



The United Arab Emirates&#8217; International Resources Holding (IRH) has pledged to invest $1.1 billion to expand output at Mopani Copper Mines after buying a 51% stake in the company previously owned by Glencore.



(Reporting by Chris Mfula; Writing by Nelson Banya; Editing by Angus MacSwan)

A truck exits the mine after collecting ore underground at the Chibuluma copper mine

Zambia’s proposed mining law bad for investment, miners say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank governor said on Wednesday that the country&#8217;s shilling currency had remained stable in the face of protests sparked by a plan to hike taxes and should shrug off recent credit rating downgrades.



Governor Kamau Thugge was speaking a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first cut in more than four years.



It was the first interest rate decision since President William Ruto bowed to pressure from protesters, scrapping the tax hikes and overhauling his cabinet amid calls for him to resign.



Rating agencies Moody&#8217;s and Fitch downgraded Kenya&#8217;s sovereign ratings following the withdrawal of the tax measures, saying the move could complicate the East African country&#8217;s fiscal consolidation efforts.



&#8220;We don&#8217;t expect that there&#8217;ll be much impact (on the shilling) &#8230; because of these downgrades,&#8221; Thugge said, adding that the central bank was seeing more foreign exchange coming into the economy than going out.



The shilling is up more than 20% against the dollar this year, after a rally that started in February when the government issued a new $1.5 billion Eurobond to buy back most of a $2 billion bond whose maturity in June had unnerved investors.



The country currently has no plans for another $1 billion bond buyback before the end of the year, the governor said, despite the World Bank saying in June this was possible.



&#8220;What we are trying as much as possible is trying to talk to our development partners, both bilaterals as well as multilaterals, to get additional external financing,&#8221; Thugge said.



Kenya has not made a decision on its future engagements with the International Monetary Fund after the current lending programme agreed in 2021 expires next year, the governor added.



The Central Bank Rate was reduced to 12.75% on Tuesday after inflation fell to 4.3% year on year in July, below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.



Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, Thugge said.



(Reporting by Bhargav Acharya and George Obulutsa; Editing by Alexander Winning, William Maclean)

ANCK25OQIFMHTJYACOM5XU5T24

Kenya currency should shrug off rating downgrades, cenbank governor says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 7 (Reuters) &#8211; Kenya&#8217;s shilling was stable against the U.S. dollar on Wednesday, LSEG data showed.



At 0807 GMT, the shilling traded at 129.00/130.00 per dollar, the same as Tuesday&#8217;s closing rate.



On Tuesday the central bank lowered its benchmark lending rate to 12.75% from 13.00% previously, saying there was scope to ease policy gradually as inflation had fallen below the midpoint of its target range.



(Reporting by George Obulutsa; Editing by Alexander Winning)

Kenyan shilling stable versus dollar – LSEG data

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1242" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Aug 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy is projected to grow 5.5% in 2025, at a similar rate to this year&#8217;s 5.4% growth, central bank Governor Kamau Thugge said on Wednesday.



The forecast for next year&#8217;s growth comes a day after the Central Bank of Kenya cut its benchmark lending rate by 25 basis points, the first rate cut in about four years.



The Central Bank Rate was reduced to 12.75% after inflation fell below the midpoint of the government&#8217;s preferred range of 2.5%-7.5%.



(Reporting by George Obulutsa and Bhargav Acharya; Editing by Alexander Winning)

A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg" alt="" class="wp-image-506011" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/HCVRNAVJRJMOJBUK4XOB7PEJGY.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A teller serves a client with Kenya shilling notes at the cashier&#8217;s booth of a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Aug 6 (Reuters) &#8211; Kenya&#8217;s shilling eased slightly on Tuesday, and traders said it was expected to hold steady during the session, with dollar demand from various sectors being matched by supply.



At 0730 GMT, commercial banks quoted the shilling at 129.50/130.50 per dollar, compared with Monday&#8217;s closing rate of 129.25/130.25.



(Reporting by George Obulutsa; Editing by Duncan Miriri)

Kenyan shilling eases slightly; expected to hold steady

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg" alt="" class="wp-image-515689" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TOL6J7SJYRMGPNAZ74HRQWMU7U-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The Mobius II first generation SUV by Kenyan car maker Mobius Motors is seen in the company&#8217;s show room in Nairobi, Kenya March 6, 2019. Picture taken March 6, 2019. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, Aug 6 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s Mobius Motors, which started making rugged, low-priced SUVs designed for Africa&#8217;s roads a decade ago, has decided to stop operating due to financial challenges, a company statement and a shareholder source said on Tuesday.



Mobius, founded by a London-born investor who experienced the continent&#8217;s bumpy roads while working for a forestry company in Kenya, found tax hikes in the East African country meant its business model was no longer sustainable, the source at one of the company&#8217;s shareholders told Reuters.



&#8220;The business could not sustain itself. There were some challenges,&#8221; said the source, asking not to be named.



The owners considered moving production to a different country, but that option was rejected due to the logistical challenges of moving the existing assembly line from Nairobi, the shareholder added.



Mobius initially produced a boxy, no-frills SUV designed for the modest budgets of African consumers, going for 1.3 million Kenyan shillings, equivalent to about $13,000 at the time and roughly half the price of an imported second-hand SUV.



It later launched updated editions with extra features.



Mobius, whose investors include Britain&#8217;s Playfair Capital, was part of a push by investors and governments on the continent to create jobs by launching home-grown vehicle manufacturers. They included Uganda&#8217;s Kiira Motors, Ghana&#8217;s Kantanka and Nigeria-based Innoson Motors.



At the same time, global automakers such as Japan&#8217;s Toyota Motor Corp and Germany&#8217;s Volkswagen AG also boosted their investments in markets including Kenya and Rwanda to tap into growing economies and rising consumer demand.



They all, however, faced the same challenges: stiff competition from second-hand imports from abroad.



Creditors will meet on Aug. 15 to vote on the voluntary liquidation, the company &#8211; which was not listed &#8211; said in the statement that appeared in newspapers.



(Reporting by Duncan Miriri; Editing by Helen Popper)

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Rwanda’s President Kagame sworn in to extend lengthy tenure

Somalia’s cabinet approves bill for universal suffrage

Kenya’s currency seen strengthening, Ghana’s steady

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Kenyan shilling stable; remittances help meet importer demand

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Uganda cuts key rate as shilling recovery helps inflation outlook

Zambia’s proposed mining law bad for investment, miners say

Kenya currency should shrug off rating downgrades, cenbank governor says

Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

Kenyan shilling eases slightly; expected to hold steady

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

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East Africa

Kenya’s finance minister eyes tax, payroll changes to cut deficits

Ugandan shilling firms slightly on weaker demand

Kenya aviation union says to strike from Aug 19 over Adani deal

DRC says it is in talks with Zambia to quickly reopen closed border

Rwanda’s President Kagame sworn in to extend lengthy tenure

Somalia’s cabinet approves bill for universal suffrage

Kenya’s currency seen strengthening, Ghana’s steady

Kenya police use tear gas to clear pockets of protesters in Nairobi

Kenyan shilling stable; remittances help meet importer demand

Ethiopia’s securities exchange to start operations in October – media

Uganda cuts key rate as shilling recovery helps inflation outlook

Zambia’s proposed mining law bad for investment, miners say

Kenya currency should shrug off rating downgrades, cenbank governor says

Kenyan shilling stable versus dollar – LSEG data

Kenyan economic growth seen steady at 5.5% in 2025, central bank says

Kenyan shilling eases slightly; expected to hold steady

Kenya’s Mobius, maker of rugged cars for African roads, calls it a day

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