<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="563" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-820x563.jpg" alt="" class="wp-image-426150" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-820x563.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-300x206.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-131x90.jpg 131w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-768x528.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-1536x1055.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/Q4O4EIZRLVOARIP55LBVU2O6P4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Riot police officers remove a barricade after dispersing supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, during an anti-government protest dubbed &#8220;Saba Saba (7th of July) People&#8217;s March&#8221;, in Nairobi, Kenya July 7, 2023. REUTERS/Monica Mwangi/File Photo</figcaption></figure>



NAIROBI, July 12 (Reuters)&nbsp;&#8211;&nbsp;Police deployed heavily in Kenya&#8217;s capital Nairobi on Wednesday ahead of expected countrywide protests called for by the main opposition leader against a raft of tax hikes.



At least two people were killed last Friday during a first round of demonstrations against the taxes, which are contained in a finance bill signed into law by President William Ruto last month.



Kenya&#8217;s High Court ordered that implementation of the legislation be suspended pending a legal challenge, but the government has raised petrol prices anyway.



The protests were called for by opposition leader Raila Odinga, who lost out to Ruto in last year&#8217;s presidential election.



A Reuters reporter in Nairobi saw police trucks with water cannons near the city&#8217;s Central Business District, where the streets were unusually quiet. Kenya&#8217;s police chief said on Tuesday that no protests would be allowed since organisers had not informed the authorities of their intention to demonstrate.



Odinga led a series of protests earlier this year against the high cost of living and alleged election irregularities.



Those repeatedly degenerated into clashes between police and protesters and led civic leaders to warn against a return to the ethnically-charged violence that has plagued Kenya in the past.



Ruto&#8217;s government says the tax hikes, which include a doubling of the fuel tax and introduction of a levy to fund affordable housing, will raise an extra 200 billion Kenyan shillings ($1.42 billion) a year and are needed to deal with growing debt repayments and to fund job-creation initiatives.



The opposition says they will deepen the suffering of Kenyans at a time when many are already struggling with high prices of basic commodities such as maize flour. ($1 = 141.2000 Kenyan shillings)



(Reporting by Thomas Mukoya and Humphrey Malalo; Writing by Aaron Ross; Editing by Alex Richardson)

Anti-government protests dubbed “Saba Saba (7th of July) People’s March”, in Nairobi

Kenyan police deploy in capital ahead of expected protests over tax hikes

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-820x547.jpg" alt="" class="wp-image-425565" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: International Monetary Fund logo is seen outside its headquarters during the IMF/World Bank spring meetings in Washington, U.S., April 20, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



JOHANNESBURG, July 6 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund said on Thursday its executive board completed the second review of Mozambique&#8217;s three-year loan program, allowing for an immediate disbursement to Maputo of about $60.6 million.



The review brings total disbursements under the $456 million Extended Credit Facility program approved last year to about $212.09 million to date, the IMF said.



&#8220;Based on the mixed program performance, the authorities have taken substantive actions to resolutely address macroeconomic challenges and keep the program on track,&#8221; it said in a statement.



The three-year arrangement is expected to support economic recovery and policies to reduce public debt and financing vulnerabilities, while creating space for public investments in human capital, climate adaptation and infrastructure.



&#8220;While the outlook remains positive, significant risks remain, mainly due to adverse climate events and a fragile security situation,&#8221; IMF Deputy Managing Director Bo Li said.



In 2016, Mozambique unveiled hefty state-backed borrowing it had previously failed to disclose, in a $2-billion corruption scandal that prompted donors to cut off aid and sparked a currency collapse and debt crisis.



(Reporting by Anait Miridzhanian; Editing by Frank Jack Daniel)

FILE PHOTO: International Monetary Fund logo is seen outside the headquarters building

IMF to disburse $60.6 mln tranche to Mozambique

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-820x462.jpeg" alt="" class="wp-image-425257" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Imaginima | E+ | Getty Images oil</figcaption></figure>



KAMPALA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Uganda is seeking new funding for its planned crude oil refinery after negotiations with a consortium that included a unit of U.S. firm General Electric&nbsp;GE.N&nbsp;lapsed over its failure to mobilise financing in time, its energy and mining ministry said.



The 60,000 barrels per day refinery would cost an estimated $3 billion to $4 billion and help the east African country process its crude reserves that it hopes to start producing in 2025.



In a statement late on Monday, the ministry said the government and the consortium had made progress on the project including concluding refinery configuration, front-end engineering and design and environmental impact assessment.



However, the ministry added, there were still &#8220;a number of outstanding aspects, including mobilisation of financing for the project.&#8221;



&#8220;The government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,&#8221; the ministry said.



Members of the Albertine Graben Energy Consortium (AGEC) include Nuovo Pignone International SRL, a GE subsidiary in Italy, YAATRA Africa and Lionworks Group Ltd, both from Mauritius, and Saipem SpA, also from Italy.



GE, YAATRA and Saipem did not respond immediately to requests for comment. Contact details for Lionworks were not immediately available.



In 2018, the government and consortium signed a project framework agreement by which the consortium committed to designing, financing and developing the refinery project.



That agreement expired on June 30 without the consortium securing necessary financing for the project.



&#8220;We are being alive to the timeline within which we need this project executed, we expected (the final investment decision) by end of June, which did not happen. That greatly hampers the timelines,&#8221; said Solomon Muyita, a ministry spokesperson.



&#8220;So far they&#8217;ve not confirmed that they have financing. So, for the consortium, when they get financing, they can still get back to us, but in the meantime we are open to any other developer.&#8221;



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Jamie Freed)



KAMPALA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Uganda is seeking new funding for its planned crude oil refinery after negotiations with a consortium that included a unit of U.S. firm General Electric&nbsp;GE.N&nbsp;lapsed over its failure to mobilise financing in time, its energy and mining ministry said.



The 60,000 barrels per day refinery would cost an estimated $3 billion to $4 billion and help the east African country process its crude reserves that it hopes to start producing in 2025.



In a statement late on Monday, the ministry said the government and the consortium had made progress on the project including concluding refinery configuration, front-end engineering and design and environmental impact assessment.



However, the ministry added, there were still &#8220;a number of outstanding aspects, including mobilisation of financing for the project.&#8221;



&#8220;The government of Uganda is now open to receiving offers from public sector capital providers to participate in this nationally and regionally strategic project,&#8221; the ministry said.



Members of the Albertine Graben Energy Consortium (AGEC) include Nuovo Pignone International SRL, a GE subsidiary in Italy, YAATRA Africa and Lionworks Group Ltd, both from Mauritius, and Saipem SpA, also from Italy.



GE, YAATRA and Saipem did not respond immediately to requests for comment. Contact details for Lionworks were not immediately available.



In 2018, the government and consortium signed a project framework agreement by which the consortium committed to designing, financing and developing the refinery project.



That agreement expired on June 30 without the consortium securing necessary financing for the project.



&#8220;We are being alive to the timeline within which we need this project executed, we expected (the final investment decision) by end of June, which did not happen. That greatly hampers the timelines,&#8221; said Solomon Muyita, a ministry spokesperson.



&#8220;So far they&#8217;ve not confirmed that they have financing. So, for the consortium, when they get financing, they can still get back to us, but in the meantime we are open to any other developer.&#8221;



(Reporting by Elias Biryabarema; Editing by Hereward Holland and Jamie Freed)

107065218-1653293244892-gettyimages-1323151704-oil-pumps-and-rig-at-sunset

Uganda seeks new funding for oil refinery after consortium deal lapses

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="579" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-820x579.jpg" alt="" class="wp-image-425918" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-820x579.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-300x212.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-127x90.jpg 127w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-768x542.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-1536x1085.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/KR5C4T7HQZP6JLNWJDVGUIKEBI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The logos of Swiss bank Credit Suisse and UBS are seen in Geneva, Switzerland, June 7, 2023. REUTERS/Denis Balibouse</figcaption></figure>



LONDON, July 3 (Reuters)&nbsp;&#8211;&nbsp;Mozambique&#8217;s blockbuster lawsuit against Credit Suisse&nbsp;UBSG.S&nbsp;and others over the $2 billion &#8220;tuna bond&#8221; scandal can proceed to trial, a London judge ruled on Monday, despite complaints that the African nation has failed to fully disclose documents.



High Court Judge Robin Knowles said it was not just, proportionate or necessary to strike out the complex case, which encompasses 11 sets of proceedings, three months before a London trial scheduled to start on Oct. 2.



But he warned: &#8220;At trial, all alternatives, including to strike out and in whole or in part, remain available.&#8221;



The tuna bond or &#8220;hidden debt&#8221; case has triggered litigation from Maputo to New York, but the London case is due to establish whether one of the world&#8217;s poorest countries can revoke a sovereign guarantee on a loan it alleges was corruptly procured, and secure compensation for other alleged wrongdoing.



The case dates back to 2013 and three deals between state-owned Mozambican companies and shipbuilder Privinvest &#8211; funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees &#8211; ostensibly to develop the fishing industry and for maritime security.



But hundreds of millions of dollars went missing and, when the state loan guarantees became public in 2016, donors such as the International Monetary Fund halted support, triggering a currency collapse and debt crisis.



The judge first raised the prospect of a strike-out in March, when he ordered Mozambique to ensure access to relevant documents in state offices such as the Office of President and SISE, the state security service.



Credit Suisse, UAE-Lebanese Privinvest and others argue that a lack of &#8220;adequate&#8221; disclosure jeopardised a fair trial.



Under English litigation rules, each party has to disclose documents on which they rely for their case, those that might damage their own case and those that support the case of others.



A spokesperson for Credit Suisse said the bank &#8220;continues to defend itself&#8221;. Privinvest did not immediately respond to a request for comment.



A spokesperson for Mozambique&#8217;s Attorney General&#8217;s Office said: &#8220;In rulings of this kind, pronouncements are always issued after a through analysis so we will respond in due course.&#8221;



The latest judgment comes as Credit Suisse&#8217;s new parent, UBS, grapples with integrating its cross-town peer &#8211; and its inherited legacy &#8211; after an emergency rescue in March.



Lawyers for Mozambique have argued that state secrecy prevents some documents from being disclosed but urged the judge to consider that the case concerned &#8220;what is said to be an international fraud and corruption of public officials on a massive scale&#8221;.



Credit Suisse agreed to pay about $475 million to British and U.S. authorities in 2021 to resolve bribery and fraud charges and has pledged to forgive $200 million of Mozambican debt. It has said three former bankers, who pleaded guilty in the U.S. to handling kickbacks, hid their conduct from the bank.



Privinvest has said it delivered on its obligations under the shipping contracts and any payments it made were legal under Mozambican law.



(Reporting by Kirstin Ridley; Additional reporting by Rachel Savage, Sam Tobin and Manuel Mucari in Maputo, Editing by Conor Humphries and Mark Potter)

The logos of Swiss bank Credit Suisse and UBS are seen in Geneva

Mozambique ‘tuna bond’ case against Credit Suisse can proceed, UK judge rules

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-820x547.jpg" alt="" class="wp-image-425878" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/VV6A42KKDBL4FNH5PXKVRTEZQI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A staff worker stands behind the national flags of Brazil, Russia, China, South Africa and India to tidy the flags before a group photo during the BRICS Summit at the Xiamen International Conference and Exhibition Center in Xiamen, southeastern China&#8217;s Fujian Province, China September 4, 2017. REUTERS/Wu Hong/Pool</figcaption></figure>



June 29 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia, one of Africa&#8217;s fastest-growing economies, has asked to join the BRICS bloc of emerging markets, the foreign ministry said on Thursday.



The term BRIC was coined by Goldman Sachs economist Jim O&#8217;Neill in 2001 to describe the rise of Brazil, Russia, India and China. The BRIC powers had their first summit in 2009 in Russia. South Africa joined in 2010.



&#8220;We expect BRICS will give us a positive response to the request we have made,&#8221; foreign ministry spokesman Meles Alem told journalists, according to the state-run news agency ENA.



Ethiopia will continue to work with international institutions that can protect its interests, he said.



The horn of Africa nation has the second-largest population in Africa, but its economy ranks only 59th in the world according to the International Monetary Fund, and is less than half the size of the smallest BRICS member South Africa.



Last year Argentina, the world&#8217;s 23rd-largest economy, said it had received China&#8217;s formal support to join the group, which is seen as a powerful emerging-market alternative to the West.



South Africa said on Thursday it will host the next summit in August as planned, amid speculation it could be moved to a location where Russia&#8217;s President Vladimir Putin would not be obliged to be arrested over war crimes accusations.



BRICS countries account for more than 40% of the world&#8217;s population and about 26% of the global economy.



(Reporting by Hereward Holland, editing by Deepa Babington)

A staff worker stands behind the national flags of Brazil, Russia, China, South Africa and India to tidy the flags before a group photo during the BRICS Summit in Xiamen

Ethiopia asks to join BRICS bloc of emerging economies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="551" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-820x551.jpg" alt="" class="wp-image-425675" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-820x551.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-768x516.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/RFHPM5NX4NPXPLM72P2QWWJKRU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zambia’s President Hakainde Hichilema arrives to attend the 36th Ordinary Session of the Assembly of the African Union at the African Union Headquarters in Addis Ababa, Ethiopia February 19, 2023. REUTERS/Tiksa Negeri</figcaption></figure>



PARIS, June 23 (Reuters)&nbsp;&#8211;&nbsp;Zambia has struck a deal to restructure $6.3 billion in debt owed to other governments, including China, marking a long-awaited breakthrough for indebted nations around the world that have faced lengthy negotiations with creditors.



Zambia in 2020 became the first African country to default on its sovereign debt during the COVID-19 pandemic and struggled since then in protracted discussions to agree a deal.



&#8220;Zambia has reached an agreement on a debt treatment with our official creditors – a significant milestone in our journey towards economic recovery &amp; growth,&#8221; Zambian President Hakainde Hichilema said on Twitter.



The agreement calls for Zambia&#8217;s debt to be rescheduled over more than 20 years with a three-year grace period during which only payments on interest are due. China is the largest official creditor to Zambia.



The debt earmarked for restructuring includes $1.3 billion in arrears, and private sector creditors are expected to do the same on the $6.8 billion owed to them, according to a French official who did not wish to be identified.



Zambia is viewed as a test case for a debt restructuring framework backed by the Group of 20 wealthy nations intended to streamline relief for countries caught in a developing world debt crisis sparked in part by the pandemic.



However, the process has been achingly slow for Zambia, a fact that has discouraged all but a handful of other struggling governments from seeking help under the mechanism.



Beijing was keen not to be seen further holding up debt relief for Zambia at the summit, the French official said, adding that French President Emmanuel Macron&#8217;s talks with Chinese authorities in Beijing in April also helped unblock the situation.



Macron said on Twitter the debt restructuring deal was &#8220;a historic achievement&#8221;.



&#8220;We remain mobilised to ensure that other countries caught in debt trap benefit from a multilateral response,&#8221; Macron added.



The restructuring agreement with official creditors paves the way for Zambia to receive another $188 million tranche of money from the International Monetary Fund, part of a $1.3 billion package approved in August 2022.



“This agreement paves the way for the completion of the first review of Zambia’s three-year Extended Credit Facility Arrangement, which is helping put Zambia on a path toward sustainable economic growth and poverty reduction,&#8221; Kristalina Georgieva, managing director of the International Monetary Fund, said in a written statement.



The scale of the debt relief Zambia requires has been a concern for some of the country&#8217;s main creditors.



Some Western officials have accused China &#8211; Zambia&#8217;s largest bilateral creditor &#8211; of dragging its feet in restructuring talks, something Beijing denies.



Of the $6.3 billion in debt owed to government bodies, $4.1 billion was owed specifically to Export-Import Bank of China&nbsp;&#8211;&nbsp;which according to analysts underlined the significance of China&#8217;s support to the debt relief deal.



&#8220;I am pleased that the international community has come together to support Zambia in its time of need,&#8221; U.S. Treasury Secretary Janet Yellen said in a statement.



&#8220;I urge all official bilateral and private sector creditors to quickly finalise the debt restructuring process that will provide relief to Zambian families and encourage the private investment that is needed to jump start the economy.&#8221;



Zambia&#8217;s Hichilema was one of about 40 leaders attending a summit in France on Thursday and Friday aimed at easing the debt burden on some of the world&#8217;s most vulnerable countries while freeing up billions of dollars in new funds for climate finance.



Zambia&#8217;s international bonds broadly traded flat on Friday but have rallied in recent months, with the 2024 issue hitting a nine month high in early trade.&nbsp;XS1056386714=TE



(Reporting by Leigh Thomas; Additional reporting by Chris Mfula in Lusaka, Jorgelina do Rosario in London, Nellie Peyton in Johannesburg and Dan Whitcomb in Paris; Writing by Karin Strohecker, Editing by Deepa Babington and Susan Fenton)

African Union holds annual heads of state and government summit in Addis Ababa

Zambia seals $6.3 billion restructuring in breakthrough for developing nations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="513" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-820x513.jpg" alt="" class="wp-image-425651" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-820x513.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-300x188.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-768x481.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-1536x962.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/6DZXSDWGCFIWPPSAJO5BMU3OQQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenyan police officers detain a Kenyan social-political activist during a protest to call on lawmakers to reject the finance bill proposed by the government that would raise various taxes, outside the Parliament Buildings in Nairobi, Kenya June 13, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, June 22 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s parliament voted late on Wednesday to approve a contentious government finance bill that will double the fuel tax and introduce a new housing levy, handing a victory to President William Ruto.



Ruto, who took office nine months ago, is pushing through a raft of tax hikes as part of his maiden budget, sparking sharp resistance from the opposition, ordinary people and businesses.



The opposition has threatened to call fresh protests if Ruto signs the tax increases into law. Street demonstrations earlier this year against the high cost of living repeatedly turned violent in the capital Nairobi and elsewhere.



Ruto&#8217;s government argues the higher taxes are necessary to stabilise government finances, which have been strained by growing debt repayments and lower than expected growth in tax collection.



The move to double the fuel tax to 16% will generate the government an extra 61 billion shillings ($434.94 million) by itself, Kuria Kimani, the chairman of parliament&#8217;s finance panel, said on Citizen Television.



The bill now moves to the president for signing.



During a session that ran late into the night, lawmakers from Ruto&#8217;s ruling coalition defeated opposition attempts to strike out the fuel tax hike as well as a new 1.5% housing tax on employees that will be matched by employers.



They also approved a new withholding tax for digital content creators.



The opposition says the housing levy will strain already squeezed incomes and raise business costs at a time when Kenyans are struggling with high prices for basic commodities.



Ruto says it will fund the construction of homes for the poor, offering them dignity and creating jobs for young people.



An opposition senator has challenged the finance bill in court, arguing that some of the measures are unconstitutional. It was not immediately clear when the court will issue a ruling.



($1 = 140.2500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Aaron Ross and Christina Fincher)

FILE PHOTO: Protests planned against Kenyan finance bill that would raise taxes in Nairobi

Kenyan lawmakers vote to double fuel tax, impose housing levy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



June 21 (Reuters)&nbsp;&#8211;&nbsp;The United States welcomes progress in talks between Zambia and its official creditors and hopes an agreement is imminent, a senior Treasury Department official said on Wednesday.



The official, who spoke on condition they not be identified, said it was not clear whether an announcement on a deal could be made at a Paris summit this week on easing the debt burdens of low-income countries.



The International Monetary Fund said on Tuesday it was encouraged by the progress made with Zambia, adding a deal could be reached in a few days.



&#8220;We welcome progress made on Zambia and hope an agreement on official bilateral creditors is imminent,&#8221; the U.S. official told reporters on a conference call.



Zambia&#8217;s hopes of restructuring about $12.8 billion of external debt have been hampered by the concerns of its main creditors about the required scale of relief.



(Reporting by David Ljunggren; Editing by Andrew Heavens and Alexander Smith)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

US says it hopes a Zambia deal with creditors is imminent

<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/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg" alt="" class="wp-image-423316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past the International Monetary Fund (IMF) logo at its headquarters in Washington, U.S., May 10, 2018. REUTERS/Yuri Gripas/</figcaption></figure>



NEW YORK, June 20 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund is encouraged by the progress in discussions between Zambia and its official creditors, and an agreement could be reached &#8220;within a few days,&#8221; the fund said in a statement on Tuesday.



&#8220;We are very encouraged by the significant progress being made in discussions between official creditors and Zambia on a potential debt treatment,&#8221; a spokesperson for the fund wrote.



&#8220;We expect an agreement could be reached within a few days, which would allow the Executive Board consider the first review of the Fund-supported program within a few weeks.&#8221;



The IMF said in early April that the next $188 million payout from a $1.3 billion support loan to Zambia was contingent on the government&#8217;s reaching an agreement with its creditors.



Zambia&#8217;s hopes of restructuring about $12.8 billion of external debt have been hampered by the concerns of its main creditors about the required scale of relief.



(Reporting by Rodrigo Campos and Rachel Savage; Editing by Leslie Adler)

FILE PHOTO: Man walks past the IMF logo at HQ in Washington

IMF sees Zambia agreement with official creditors ‘within a few days’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="578" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-820x578.jpg" alt="" class="wp-image-425553" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-820x578.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-768x541.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-1536x1082.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/CZMKO33ZHRPCNKR7BRSXJ4MK24-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A coffee farmer picks ripe berries in a farm in Karatina, 200 km (124 miles) north of Kenya&#8217;s capital Nairobi July 23, 2010/File Photo</figcaption></figure>



NAIROBI, June 19 (Reuters)&nbsp;&#8211;&nbsp;Kenya on Monday signed an Economic Partnership Agreement with the European Union that will guarantee duty-free access for its farm produce into its biggest export market.



European goods entering Kenya will see tariffs reduced over a 25-year period under the agreement, officials said at a signing ceremony in the Kenyan capital Nairobi.



The deal took seven months to negotiate, making it one of the fastest the EU has ever struck, officials from both sides said.



Kenya, Africa&#8217;s seventh-largest economy, is a major exporter of tea, coffee, flowers, fruits and vegetables. The EU accounts for 21% of its overall exports.



&#8220;Beyond trade, the agreements is designed to stimulate investments and manufacturing,&#8221; Kenya&#8217;s President William Ruto said in his address.



Kenya signed an initial trade deal with the EU in 2016, alongside its partners in the six-nation East African Community trade bloc, but it was not signed by most of the EAC countries and therefore did not fully come into effect.



While the other EAC members are classified as least developed countries, meaning their exports could continue to get access without the deal, Kenya is middle income and therefore had to seek a stand-alone arrangement.



The deal now moves to the parliaments of both sides for ratification.



Kenya is also negotiating a trade and investment deal with the United States which its trade minister said he expects to be signed next year.



(Reporting by Duncan Miriri, editing by Ed Osmond)

FILE PHOTO: A coffee farmer picks ripe berries in a farm in Karatina

Kenya signs trade deal with European Union to safeguard exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="622" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-820x622.jpg" alt="" class="wp-image-425525" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-820x622.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-300x228.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-119x90.jpg 119w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-768x582.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-1536x1165.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/AKAPJHETXVOTBH5Q5VWTKJHGXI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u carries a briefcase containing the Government Budget for the 2023/24 fiscal year outside the National Treasury building in Nairobi, Kenya June 15, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, June 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s finance minister on Thursday said the government will pay all debts when they fall due, and cut the budget deficit for the fiscal year starting next month to 4.4% from an estimated 5.8% in this financial year.



In a budget speech that was briefly interrupted by the walk-out of more than a dozen lawmakers from the opposition coalition, Njuguna Ndung&#8217;u said the global shocks had increased the risks associated with debt.



&#8220;Although the debt burden has risen &#8230; The government is committed to honour all public debt obligations as they fall due,&#8221; he said.



The East African nation&#8217;s total public debt stands at 67% of GDP according to the World Bank, which together with the International Monetary Fund rates the debt as being at a high risk of distress.



Ndung&#8217;u set the total government expenditure for the year at 3.7 trillion shillings ($26.5 billion), which parliament&#8217;s budget committee said represented a lower increase on the previous year when compared with the historical average.



&#8220;We have moderated our spending to ensure value for money,&#8221; the minister said.



The opposition has rejected a raft of tax hikes proposed by President William Ruto&#8217;s government, which argues that the pain is necessary to stabilise government finances in the face of growing debt repayments.



The opposition lawmakers who walked out of the budget speech left while shouting, prompting Speaker Moses Wetangula to call out &#8220;Order! Order&#8221;.



<h2 class="wp-block-heading" id="h-fiscal-discipline">FISCAL DISCIPLINE</h2>



Growth is expected to rebound to 5.5% this year, Ndung&#8217;u said, after a severe drought and other shocks curbed economic activity last year.



Ruto, who was elected last August on a platform of helping the poor, has vowed to entrench fiscal discipline, including shunning a rapid accumulation of debt.



But his maiden budget has run into stiff resistance after his government moved to double the tax on petroleum products to 16%, introduce a new housing tax of 1.5% for every employee and impose a tax on digital content creators.



&#8220;This is the most controversial finance bill I have ever seen,&#8221; said Junet Mohamed, the opposition chief whip in the national assembly, and an 11-year veteran of the house, referring to a draft law that accompanies the budget.



The bill sailed through its second reading late on Wednesday and lawmakers are expected to hold a final vote on every provision next week.



The budget also comes against a backdrop of slowing economic activity, persistently high costs of basic commodities like maize flour and a slower than expected revenue collection pace.



&#8220;Given this, one would expect a reduction in expenditure, but it is set to increase,&#8221; said Nikhil Hira, partner at Kody Africa LLP, a Nairobi-based tax advisory.



($1 = 139.8000 Kenyan shillings)



(Reporting by Duncan Miriri and George Obulutsa; Editing by James Macharia Chege, Kirsten Donovan and Emelia Sithole-Matarise)

Kenya’s Finance Minister Njuguna Ndung’u carries a briefcase containing the Government Budget outside the National Treasury building in Nairobi

Kenya finance minister vows to pay all due debts, cuts deficit

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-820x555.jpg" alt="" class="wp-image-425521" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-1536x1040.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SMALP66JZ5I55PV72RFXAZ4MBA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Ugandan business people are seen at a market with their merchandises for sale at Mpondwe border that separates Uganda and the Democratic Republic of Congo, in Mpondwe, Uganda, June 14, 2019. REUTERS/James Akena/File Photo</figcaption></figure>



KAMPALA, June 15 (Reuters)&nbsp;&#8211;&nbsp;Uganda has cut its budget deficit forecast for the 2023/2024 fiscal year and plans to increase total spending by 10% from the current period, Finance Minister Matia Kasaija said in his budget speech on Thursday.



The International Monetary Fund (IMF) has praised the country&#8217;s response to the economic impact of the war in Ukraine and the tightening of global financial conditions, which included support to vulnerable households, and a tightening of monetary policy to contain inflation.



The budget deficit will shrink to 3.5% in the next fiscal year, which starts next month, from 5.1% in the current financial year, Kasaija said.



Next fiscal year&#8217;s spending is 10% higher than the previous period at 52.7 trillion shillings ($14 billion).



The east African nation is expected to spend 8.7 trillion shillings on external debt repayments in the new fiscal year, he told lawmakers in Kampala.



Uganda maintained its growth projection at 6%, up from a forecast 5.5% in the previous period, driven by robust growth in infrastructure and the provision of cheap credit, Kasaija said.



Economic activity related to the planned construction of a $2.2 billion standard gauge railway, a crude oil refinery and a $3.5-billion crude oil export pipeline would bolster growth, he said. Uganda is expected to start commercial production of its oil deposits in 2025.



The minister pledged the &#8220;provision of affordable credit for micro and small enterprises&#8221; to boost economic expansion.



Uganda&#8217;s total public debt stock, a major concern for its opposition parties, was projected to ease slightly to 48.2% in the fiscal year ending this month, down from 48.6% a year ago.



&#8220;In order to live within our means, we have reduced consumptive expenditure. During next financial year, there will be no purchase of new vehicles for political leaders and public officers,&#8221; he said.



($1 = 3,688.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Writing by Hereward Holland and Bhargav Acharya; Editing by James Macharia Chege and Sharon Singleton)

FILE PHOTO: Ugandan business people are seen at a market with their merchandises for sale at Mpondwe border that separates Uganda and the Democratic Republic of Congo in Mpondwe

Uganda cuts deficit, sees total spending rising in 2023/24

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-820x542.jpg" alt="" class="wp-image-425517" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/3HWZWVIRAVPBBEMBWDXTXH6RCE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker prepares a garment at the the Utexrwa garment factory in Kigali, Rwanda April 17, 2018. REUTERS/Jean Bizimana</figcaption></figure>



KIGALI, June 15 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s overall spending will increase by 5.6% in the 2023/2024 fiscal year to 5.03 trillion Rwandan francs ($4 billion) compared with the current period, finance minister Uzziel Ndagijimana said during a budget speech on Thursday.



Ndagijimana said 63% of the budget would be financed by domestic revenues, while external loans would constitute 24% and external grants 13%.



&#8220;The budget reflects (the) government&#8217;s economic resilience efforts in the face of global shocks,&#8221; Ndagijimana said.



Rwanda&#8217;s economy has bounced back well since the height of the coronavirus pandemic, but macroeconomic imbalances have emerged, according to the International Monetary Fund (IMF).



Strong output in manufacturing and services sectors more than offset weaker agricultural production and construction, but rising food prices and strong domestic demand contributed to persistently high inflation, the IMF said earlier this month.



($1 = 1,132.6600 Rwandan francs)



(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by James Macharia Chege)

A worker prepares a garment at the the Utexrwa garment factory in Kigali

Rwanda to increase spending by 5.6% in 2023/2024 budget

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="549" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-820x549.jpg" alt="" class="wp-image-425455" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-820x549.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-1536x1029.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/Kenyan-presidents-tax-hikes-alienate-his-hustler-base-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Workers package maize flour at the Capwell industries limited in Thika area of Kiambu County, Kenya June 13, 2023. REUTERS/Monicah Mwangi</figcaption></figure>



GITHUNGURI, Kenya, June 14 (Reuters) &#8211; Eighty percent of voters in this constituency in the heart of Kenyan tea country cast their ballots for William Ruto last August, helping the self-proclaimed champion of impoverished &#8220;hustlers&#8221; score an upset presidential election win.



Less than a year later, it is hard to find anyone in Githunguri willing to speak up in his defence.



Since Ruto came to office, prices for staple food items have continued to rise. Ruto has also faced criticism for increasing allocations to his office and the deputy president&#8217;s while cutting petrol subsidies.



Now, a proposal to hike taxes on petrol and housing is fuelling the strongest backlash yet and energising an opposition whose demonstrations this year led to repeated clashes with police on the streets of the capital Nairobi.



The proposals, contained in a draft law known as the finance bill, will be considered by parliament alongside the 2023-24 budget to be presented by the finance minister on Thursday.



On Githunguri town&#8217;s bustling streets, dozens of residents crowded around Reuters reporters to voice their opposition.



Jacqueline Wambui, a waitress, said she regretted casting her ballot for Ruto last August. &#8220;The promises we were given as small traders and motor-bike riders have not come about,&#8221; she said.



Ruto&#8217;s spokesperson did not respond to a request for comment.



The president and his allies have defended the tax hikes, saying East Africa&#8217;s economic powerhouse needs more revenue to avert a debt crisis and fund affordable housing projects.



Costly infrastructure initiatives under Ruto&#8217;s predecessor Uhuru Kenyatta drove total debt to 67% of GDP, and repayments now consume nearly half of all revenues.



At the same time, Ruto says he has kept his commitment to helping the poor, pointing to initiatives like the distribution of fertiliser to millions of farmers and a micro-loans programme called the &#8220;Hustler Fund&#8221;.



LITTLE SYMPATHY



Those arguments have found little sympathy among people reeling from rising prices, including a nearly 30% increase in the cost of maize flour since Ruto&#8217;s election due to poor harvests, the war in Ukraine and a weakening domestic currency.



The bill is generally expected to pass in parliament, where Ruto&#8217;s allies have a majority, but it has provided fodder for an opposition that has seized on its unpopularity.



The main opposition coalition, led by Raila Odinga who lost out to Ruto in last year&#8217;s election, has said it plans to organise more protests if the bill is passed.



One man in Githunguri, who declined to give his name, defended the finance bill, saying Ruto was simply trying to leave his mark by constructing affordable housing.



But he was a lone voice.



Fruit vendor John Nyaga, another Ruto voter, complained that the tax hikes would leave his customers with even less money to spend.



&#8220;Those extra deductions will not just hit the employed people, they will also translate to us being squeezed,&#8221; he said.



(Reporting by Duncan Miriri; Editing by Aaron Ross and Ed Osmond)

Workers package maize flour at the Capwell industries limited in Thika area of Kiambu County

Kenyan president’s tax hikes alienate his ‘hustler’ base

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="577" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-820x577.jpg" alt="" class="wp-image-425406" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-820x577.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-300x211.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-128x90.jpg 128w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-768x540.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-1536x1081.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/HI466VZHEJJ2XHML3CMYCHNO4I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Eritrean President Isaias Afwerki attends a meeting with Russian President Vladimir Putin in Moscow, Russia May 31, 2023. Sputnik/Mikhail Metzel/Pool via REUTERS</figcaption></figure>



NAIROBI, June 13 (Reuters)&nbsp;&#8211;&nbsp;Eritrea has rejoined a regional East African bloc it left 16 years ago, its information minister said, in the country&#8217;s latest move to rebuild ties with its neighbours.



The Asmara government quit the Intergovernmental Authority on Development in Eastern Africa (IGAD) in 2007 to protest Ethiopian troops&#8217; entry into Somalia to force out its Islamist rulers.



&#8220;Eritrea resumed its activity in IGAD and took its seat at the 14th Ordinary Summit in Djibouti,&#8221; Information Minister Yemane Meskel wrote on Twitter late on Monday after the summit. He did not say what had prompted the decision but said Eritrea wanted to join other IGAD members and help advance peace and stability in the region.



Eritrea, which has been ruled by Isaias Afwerki since gaining independence from Ethiopia in 1993, fought a bloody border war with Ethiopia from 1998 to 2000, and has repeatedly fallen out with its neighbours.



It is also under U.S. and EU sanctions for alleged human rights abuses.



However, it has taken steps in recent years to repair regional ties.



In 2018, it signed a peace deal with Ethiopia that formally ended the state of war that had existed since the border conflict, restored diplomatic ties with Somalia and normalised relations with Djibouti.



It has also strengthened ties with Kenya, which announced earlier this year that it would open an embassy in Asmara.



Still, human rights groups say Afwerki&#8217;s rule remains as repressive as ever, pointing to forced military conscription that continues to drive thousands to flee the country each year.



Eritrea also drew international condemnation for alleged atrocities committed by its soldiers during the 2020-2022 war in northern Ethiopia&#8217;s Tigray region, where they fought in support of Ethiopian troops against Tigrayan forces.



Eritrea has denied those allegations.



(Reporting by George Obulutsa; Editing by Aaron Ross and Susan Fenton)

Russian President Putin and Eritrean President Afwerki meet in Moscow

Eritrea rejoins regional East African bloc after 16-year absence

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg" alt="" class="wp-image-425291" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington, U.S., April 11, 2019. REUTERS/James Lawler Duggan/File Photo</figcaption></figure>



June 9 (Reuters) &#8211; The World Bank Group&#8217;s private investment arm and guarantee agency have pledged more support for the first private telecoms operator in Ethiopia, Safaricom Ethiopia.



In September investment arm the International Finance Corporation (IFC) said it planned to inject up to $160 million in equity, but in a statement dated June 8 World Bank Group said that IFC&#8217;s equity investment would be $157 million and that it would also provide a $100 million loan.



The Multilateral Investment Guarantee Agency will provide 10-year guarantees of $1 billion to cover the equity investments of Safaricom Ethiopia&#8217;s shareholders: Vodafone Group, Vodacom, Safaricom and British International Investment.



&#8220;The investment and guarantees will help Safaricom Ethiopia roll out and operate 4G and 5G mobile networks across the country – including in rural and urban areas,&#8221; the statement said.



Safaricom Ethiopia launched its mobile network in October after winning an operating licence in May 2021.



Previously state-owned Ethio Telecom had a monopoly in Africa&#8217;s second-most populous country with a population of about 120 million people.



(Reporting by Alexander Winning Editing by David Goodman )

FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington

World Bank Group pledges more support for Safaricom Ethiopia

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



NAIROBI, June 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy is expected to grow at a slightly faster pace this year, the World Bank said on Wednesday, underpinned by a recovery in the key agriculture sector.



The East African nation&#8217;s economy will expand by 5.0% in 2023, the bank said in its latest biannual Kenya Economic Update report, inching up from 4.8% last year.



Following a debilitating drought in the past two years, many farming areas have enjoyed adequate rainfall in recent months, which could boost production and reduce inflationary pressure.



The growth outlook, however, faces several risks, the bank said, including any new global shocks that could curb demand for exports, the World Bank said.



Kenya is also dealing with growing public debt repayments, that have put pressure on government finances, but the authors of the report said they expect it to cope well.



&#8220;Though the debt remains at high risk of distress, it remains sustainable,&#8221; said Naomi Mathenge, a senior economist at the bank and one of the report&#8217;s authors.



President William Ruto&#8217;s government, which took over last September, has also reduced the pace of debt accumulation and sought cheaper sources of funds from bilateral and multilateral financiers, she said.



Total public debt is expected to edge lower to 64.8% of gross domestic product at the end of this year, from 67.4% at the end of 2022, the World Bank said, .



Ruto&#8217;s administration, which is under pressure to raise additional revenue, has proposed a raft of tax hikes, which have attracted protests.



The additional taxes could dampen consumption, Mathenge said.



Kenya could turn the threat it faces from climate change into an opportunity, the World Bank said in the report, by courting green investments from international investors who want to reduce the carbon footprint in their supply chains.



It contributes less than 1% of the annual global greenhouse gases emissions, the bank said, offering it opportunities to trade more of its carbon credits.



(Reporting by Duncan Miriri; Editing by George Obulutsa and Sharon Singleton)

East Africa

Kenyan police deploy in capital ahead of expected protests over tax hikes

IMF to disburse $60.6 mln tranche to Mozambique

Uganda seeks new funding for oil refinery after consortium deal lapses

Mozambique ‘tuna bond’ case against Credit Suisse can proceed, UK judge rules

Ethiopia asks to join BRICS bloc of emerging economies

Zambia seals $6.3 billion restructuring in breakthrough for developing nations

Kenyan lawmakers vote to double fuel tax, impose housing levy

US says it hopes a Zambia deal with creditors is imminent

IMF sees Zambia agreement with official creditors ‘within a few days’

Kenya signs trade deal with European Union to safeguard exports

Kenya finance minister vows to pay all due debts, cuts deficit

Uganda cuts deficit, sees total spending rising in 2023/24

Rwanda to increase spending by 5.6% in 2023/2024 budget

Kenyan president’s tax hikes alienate his ‘hustler’ base

Eritrea rejoins regional East African bloc after 16-year absence

World Bank Group pledges more support for Safaricom Ethiopia

Kenya economic growth to edge up this year, World Bank says

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East Africa

Kenyan police deploy in capital ahead of expected protests over tax hikes

IMF to disburse $60.6 mln tranche to Mozambique

Uganda seeks new funding for oil refinery after consortium deal lapses

Mozambique ‘tuna bond’ case against Credit Suisse can proceed, UK judge rules

Ethiopia asks to join BRICS bloc of emerging economies

Zambia seals $6.3 billion restructuring in breakthrough for developing nations

Kenyan lawmakers vote to double fuel tax, impose housing levy

US says it hopes a Zambia deal with creditors is imminent

IMF sees Zambia agreement with official creditors ‘within a few days’

Kenya signs trade deal with European Union to safeguard exports

Kenya finance minister vows to pay all due debts, cuts deficit

Uganda cuts deficit, sees total spending rising in 2023/24

Rwanda to increase spending by 5.6% in 2023/2024 budget

Kenyan president’s tax hikes alienate his ‘hustler’ base

Eritrea rejoins regional East African bloc after 16-year absence

World Bank Group pledges more support for Safaricom Ethiopia

Kenya economic growth to edge up this year, World Bank says

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