<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E.jpg" alt="" class="wp-image-519304" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/LYEEWJTJKRPK3GJPCKWFP3EK7E-1536x804.jpg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the 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 15 (Reuters)&nbsp;&#8211;&nbsp;The Kenyan and Ghanaian currencies are expected to be broadly stable in the next week to Thursday, while the Nigerian, Ugandan and Zambian currencies could fall, traders said.



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



Kenya&#8217;s shilling has in recent weeks shrugged off major demonstrations which forced the government to abandon tax hikes and triggered credit rating downgrades. It is seen remaining relatively steady.



This week traders said foreign-currency inflows for a bond auction had played a role supporting the currency.



Commercial banks quoted the shilling at 128.50/129.50 per dollar on Thursday, compared with last Thursday&#8217;s closing rate of 128.75/129.75.



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



Nigeria&#8217;s naira could slip on the official market, unless the central bank intervenes to ease the pressure.



LSEG data showed the naira was quoted at 1,582 to the dollar on the official market, compared with around 1,580 a week ago. The unit changed hands at 1,595 naira to the dollar in street trading on Thursday.



The central bank injected dollars into the market last week, but pressure on the currency is building again.



&#8220;It&#8217;s most likely going to continue depreciating unless the central bank intervenes again,&#8221; one trader said.



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



Ghana&#8217;s cedi is expected to remain steady on the back of improved dollar liquidity and a slowdown in demand on the interbank market.



LSEG data showed the cedi trading at 15.60 to the dollar, from 15.52 at last Thursday&#8217;s close.



&#8220;The cedi has posted marginal gains in recent sessions as FX liquidity has improved and corporate demand reduced,&#8221; said Sedem Dornoo, a senior trader at Absa Bank Ghana.



&#8220;In the coming week, we expect a relatively stable (dollar-cedi) pair, with bid-offer spreads narrowing as liquidity continues to improve,&#8221; he added.



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



Uganda&#8217;s shilling is seen trading with a weakening tone on an expected pick-up in dollar demand after mid-month tax payments.



Commercial banks quoted the shilling at 3,720/3,730 to the dollar, compared with last Thursday&#8217;s close of 3,725/3,735.



&#8220;Typically after mid-month taxes we see a surge in interest for dollars, I think that dynamic is likely to push the shilling on the lower side (weaker),&#8221; one trader said.



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



Zambia&#8217;s kwacha could post minor losses because of elevated dollar demand in the wake of a severe drought which has spurred imports.



On Thursday the kwacha was slightly weaker at 26.25 per dollar, from 26.05 a week ago.



&#8220;Dollar supply remains limited and demand continues to be high, putting pressure on the kwacha,&#8221; one trader said.



(Reporting by Hereward Holland, Chijioke Ohuocha, Christian Akorlie, Elias Biryabarema and Chris Mfula;Editing by Alexander Winning)

LYEEWJTJKRPK3GJPCKWFP3EK7E

Kenya and Ghana currencies seen steady

<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 15 (Reuters) &#8211; Kenya&#8217;s shilling was unchanged against the U.S. dollar on Thursday, despite a slight uptick in foreign exchange demand from fuel traders and manufacturers, traders said.



At 0910 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, the same level it closed on Wednesday.



The shilling has traded relatively evenly recently, shrugging off major protests which forced the government to abandon planned tax hikes and triggered credit rating downgrades.



(Reporting by Hereward Holland; Editing by Alexander Winning)

ANCK25OQIFMHTJYACOM5XU5T24

Kenyan shilling flat despite slight uptick in dollar demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="534" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UWIKV4GDEJJVZLW6UE2OMJCQHA.jpg" alt="" class="wp-image-519143" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UWIKV4GDEJJVZLW6UE2OMJCQHA.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UWIKV4GDEJJVZLW6UE2OMJCQHA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UWIKV4GDEJJVZLW6UE2OMJCQHA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/UWIKV4GDEJJVZLW6UE2OMJCQHA-768x513.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">A general view of the cityscape of Addis Ababa, Ethiopia, April 24, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



LONDON/NEW YORK, Aug 14 (Reuters)&nbsp;&#8211;&nbsp;A group of foreign holders of Ethiopia&#8217;s $1 billion international bond said on Wednesday it was disappointed with recent government comments regarding a possible 20% principal haircut on their holdings.



The group &#8220;does not view any such haircut as being consistent with its evaluation of Ethiopia&#8217;s economic fundamentals,&#8221; it said via email, calling the government&#8217;s recent public statements &#8220;incompatible with a good-faith approach to debt restructuring.&#8221;



The government did not respond to a request for comment.



The comments set the stage for tense restructuring negotiations in the wake of Ethiopia defaulting on its sole international bond in December and has made little headway since.



The country surprised bondholders by announcing plans earlier this month to reduce the bond principal to $800 million, indicating a 20% haircut, citing the need to match debt relief offered by official creditors.



The creditor group, which says it holds more than 40% of the bond, called for transparency and public disclosure of any assumptions made with the input of official bilateral creditors.



The East African country requested a debt&nbsp;rework in&nbsp;early 2021 under the G20 Common Framework restructuring process, but a two-year civil war, which ended in a truce in late 2022, delayed progress.



Ethiopia had secured an agreement with the International Monetary Fund for a new $3.4 billion financing program in July.



The government at the time said it planned to finalise the restructuring before the first review of its&nbsp;IMF programme.&nbsp;According to the&nbsp;Fund, initial reviews will be held on a quarterly basis.



The IMF did not respond to a request for comment.



Negotiating in&nbsp;good faith&nbsp;is key for the progress of any country&#8217;s IMF programme, which includes&nbsp;timely dialogue,&nbsp;information sharing and&nbsp;the opportunity for&nbsp;creditor input.



Ethiopia&#8217;s Eurobond slipped 0.3 cents in a sixth straight session of declines, being bid at 76.5 cents, Tradeweb data showed.



The security is held by major asset management firms, such as Eaton Vance, Morgan Stanley, Vanguard and BlackRock, according to EMAXX data.



The bond&nbsp;makes up a small part of Ethiopia&#8217;s external debt.



The IMF estimates that as of end-June, external debt stood at $28.9 billion, around half of which it owed to multilateral lenders such as the IMF, World Bank and African Development Bank.



Of the $12.4 billion owed to bilateral lenders, China accounts for $7.4 billion and Saudi Arabia just over $1 billion. Ethiopia&nbsp;owes under $2 billion to Paris Club rich creditor nations.



Ethiopia failed to reach an agreement in formal talks with investors late last year. Back then, the government proposed to swap the existing bond for a new $1 billion issue that would be paid off starting in 2028.



&#8220;There&#8217;s no formal proposal out there so we don&#8217;t know what the government intends,&#8221; said Kevin Daly, portfolio manager at abrdn, which holds the bond but is not part of the creditor group,&nbsp;adding&nbsp;a deal would probably be found between the previous government offer and the 20% haircut proposal.



Yvette Babb, portfolio manager at William Blair, said a swift debt rework should be possible, though Ethiopia&#8217;s apparent lack of desire to issue Eurobonds down the line might make for less urgency on the government side.



&#8220;This is not a very complex case &#8211; it&#8217;s a single bond, $1 billion, the IMF parameters are pretty clear. It&#8217;s really a matter of the willingness for all parties to get this done quickly.&#8221;



(Reporting by Libby George, Duncan Miriri, Rodrigo Campos and Karin Strohecker; Editing by Chizu Nomiyama, Jan Harvey, Richard Chang, Jonathan Oatis and Ana Nicolaci da Costa)

A general view of the cityscape of Addis Ababa

Ethiopia bondholders disappointed by proposed bond haircut

<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/FYWWSVJ7GZPUZHCREMBLZUUK6I-scaled.jpg" alt="" class="wp-image-518808" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FYWWSVJ7GZPUZHCREMBLZUUK6I-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FYWWSVJ7GZPUZHCREMBLZUUK6I-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FYWWSVJ7GZPUZHCREMBLZUUK6I-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FYWWSVJ7GZPUZHCREMBLZUUK6I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FYWWSVJ7GZPUZHCREMBLZUUK6I-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/FYWWSVJ7GZPUZHCREMBLZUUK6I-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A view of the Bank of Zambia in Lusaka, Zambia February 23, 2024. REUTERS/Namukolo Siyumbwa/File Photo</figcaption></figure>



LUSAKA, Aug 14 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s central bank kept its benchmark lending rate unchanged on Wednesday, saying that although inflation remained high its stance was appropriate given the economic impact of a severe drought.



The decision to hold the Monetary Policy Rate at 13.50% follows six successive meetings at which it was raised. So far this year the Bank of Zambia has implemented a 100 basis point hike in May and a 150 basis point increase in February.



&#8220;While actual and projected inflation remain elevated relative to the 6%-8% target band, the committee judged that the current monetary policy stance is appropriate,&#8221; central bank Governor Denny Kalyalya told a news conference.



Inflation has been rising since the middle of last year, reaching 15.4% year on year in July, fuelled by a slide in the kwacha currency and the worst drought in the southern African region in decades.



The central bank now anticipates inflation will average 15.3% in 2024, up from the 13.7% forecast it gave at its last policy meeting in May.



Kalyalya said the completion of Zambia&#8217;s external debt restructuring and implementation of structural reforms remained critical to lower inflation.



Weighed down by delays in restructuring talks and limited foreign-currency inflows, the kwacha hit repeated record lows against the dollar from November to February and has been highly volatile since.



&#8220;In taking the decision to maintain the Policy Rate as opposed to raising it, the committee also took into account the impact on the stability of the financial system and growth, particularly in 2024, in the wake of the drought,&#8221; Governor Kalyalya said.



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

FYWWSVJ7GZPUZHCREMBLZUUK6I

Zambia central bank holds key rate, citing impact of drought

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-820x547.jpg" alt="" class="wp-image-510212" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532392-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker at a foreign exchange currency bureau counts 1000 Ugandan shilling banknotes in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Aug 14 (Reuters) &#8211; The Ugandan shilling traded stable on Wednesday, underpinned by a slowdown in appetite for hard currency from both merchandise importers and players in the interbank market, traders said.



At 0942 GMT commercial banks quoted the shilling at 3,725/3,735, same level as Tuesday&#8217;s close.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

Ugandan shilling stable as demand thins out

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-820x547.jpg" alt="" class="wp-image-409717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenyan shilling banknotes and coins sit arranged at a market stall in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The countrys Treasury has already cut this years growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output. Photographer: Luis Tato/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, Aug 14 (Reuters) &#8211; Kenya&#8217;s shilling was flat against the U.S. dollar on Wednesday, as foreign-currency inflows for a bond auction matched reduced dollar demand from manufacturers and fuel importers, traders said.



At 0907 GMT, commercial banks quoted the shilling at 128.75/129.75 per dollar, the same level it closed on Tuesday.



On Wednesday the central bank will auction 50 billion Kenyan shillings of infrastructure bonds.



&#8220;The central bank has also been buying dollars to keep the rate at a stable level,&#8221; one trader said.



(Reporting by Hereward Holland; Editing by Alexander Winning)

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenyan shilling flat as FX inflows for bond auction match demand

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1220" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg" alt="" class="wp-image-516586" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI.jpg 1920w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/RLVCCF47LVIWPJR4O2PPITYMVI-820x521.jpg 820w, 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" sizes="auto, (max-width: 1920px) 100vw, 1920px" /><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 13 (Reuters) &#8211; Kenya&#8217;s shilling inched higher against the U.S. dollar on Tuesday, lifted by dollar inflows from remittances and offshore investors attracted by an upcoming infrastructure bond auction, traders said.



At 0910 GMT, commercial banks quoted the shilling at 128.50/129.50 per dollar, compared with 128.75/129.75 at the close of Monday&#8217;s session.



The central bank will sell 50 billion Kenyan shillings of infrastructure bonds on Wednesday.



&#8220;We see &#8230; infrastructure bonds tomorrow so there could be some foreign investors attracted,&#8221; one trader said, adding that the auction might not be as highly subscribed as in February because Kenya&#8217;s sovereign credit ratings had been downgraded recently.



Moody&#8217;s and Fitch downgraded Kenya&#8217;s ratings deeper into &#8220;junk&#8221; territory after the government backtracked on highly contested tax increases following mass protests. S&amp;P Global is scheduled to review Kenya&#8217;s ratings on Aug. 23.



(Reporting by Hereward Holland; Editing by Alexander Winning)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenyan shilling inches higher on remittances, foreign inflows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg" alt="" class="wp-image-506008" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1604532787-1536x1025.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Ugandan shilling and US dollars in the draw at a foreign exchange currency bureau in Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



KAMPALA, Aug 13 (Reuters)&nbsp;&#8211;&nbsp;The Ugandan shilling&nbsp;traded stable on Tuesday, with demand for hard currency subdued as some firms reserved a part of their local currency holdings for mid-month tax payments, traders said.



At 0914 GMT commercial banks quoted the shilling at 3,725/3,735, the same level as Monday&#8217;s close.



(Reporting by Elias Biryabarema; Editing by Hereward Holland)

Ugandan Economy Following Rate Cut

Ugandan shilling flat; pending tax payments suppress demand

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="524" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TUECT3YWJBLPBBKU2UOKASRWP4-820x524.jpg" alt="" class="wp-image-518337" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TUECT3YWJBLPBBKU2UOKASRWP4-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TUECT3YWJBLPBBKU2UOKASRWP4-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TUECT3YWJBLPBBKU2UOKASRWP4-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TUECT3YWJBLPBBKU2UOKASRWP4-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TUECT3YWJBLPBBKU2UOKASRWP4-1536x981.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/TUECT3YWJBLPBBKU2UOKASRWP4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People shop at a public market, ahead of the parliamentary and presidential elections that are scheduled for December 20, in Kinshasa, the Democratic Republic of Congo December 19, 2023. REUTERS/Zohra Bensemra</figcaption></figure>



KINSHASA, Aug 12 (Reuters)&nbsp;&#8211;&nbsp;Zambia will reopen its border with Democratic Republic of Congo after sealing it at the weekend due to protests, blocking a key export route for the world&#8217;s second largest copper producer, the two countries said in a joint statement on Monday.



The border, which was closed following an announcement by Zambian Trade Minister Chipoka Mulenga on Saturday, will reopen on Tuesday, according to a separate statement from Congo&#8217;s trade ministry.



Mulenga made the announcement after a Congolese ban on imported soft drinks and beer led to demonstrations by Congolese transporters in the border town of Kasumbalesa.



Congo on Sunday said talks had begun between the neighbouring countries to enable a rapid reopening of the border.



On Monday, it said it would authorise the import of goods covered under the ban whose importation had been initiated before the ban came into effect.



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 Benoit Nyemba, Yassin Kombi and Ange Kasongo; Writing by Portia Crowe; Editing by Sandra Maler)

People shop at a public market, ahead of the parliamentary and presidential elections that are scheduled for December 20, in Kinshasa

Zambia to reopen closed border with Democratic Republic of Congo

<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)

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)

East Africa

Kenya and Ghana currencies seen steady

Kenyan shilling flat despite slight uptick in dollar demand

Ethiopia bondholders disappointed by proposed bond haircut

Zambia central bank holds key rate, citing impact of drought

Ugandan shilling stable as demand thins out

Kenyan shilling flat as FX inflows for bond auction match demand

Kenyan shilling inches higher on remittances, foreign inflows

Ugandan shilling flat; pending tax payments suppress demand

Zambia to reopen closed border with Democratic Republic of Congo

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

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East Africa

Kenya and Ghana currencies seen steady

Kenyan shilling flat despite slight uptick in dollar demand

Ethiopia bondholders disappointed by proposed bond haircut

Zambia central bank holds key rate, citing impact of drought

Ugandan shilling stable as demand thins out

Kenyan shilling flat as FX inflows for bond auction match demand

Kenyan shilling inches higher on remittances, foreign inflows

Ugandan shilling flat; pending tax payments suppress demand

Zambia to reopen closed border with Democratic Republic of Congo

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

News Tips

Advertise With Us

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