<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-820x547.jpg" alt="" class="wp-image-521585" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/GettyImages-1556188599-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The headquarters of the National Bank of Rwanda, Rwanda&#8217;s central bank, in the Nyarugenge district of Kigali, Rwanda on Thursday, July 20, 2023. The World Bank cut Rwanda&#8217;s GDP growth estimate to 5.8% from 6.2%, as it expected flooding during April and May to result in slowed economic expansion. Photographer: Bing Guan/Bloomberg via Getty Images</figcaption></figure>



KIGALI, Aug 21 (Reuters)&nbsp;&#8211;&nbsp;Rwanda&#8217;s central bank lowered its key interest rate by 50 basis points to 6.5% on Wednesday, its second cut in a row, saying inflation was projected to remain within its target band at around 5% on average.



The decision follows a 50 basis point cut to the National Bank of Rwanda&#8217;s Central Bank Rate in May.



Annual inflation peaked at 21.7% in November 2022 and has remained under 6% since the start of this year. It dipped to 4.9% in July, well within policymakers&#8217; 2%-8% target range.



&#8220;Inflation is expected to remain within our band and around our medium objective of 5% for this year 2024 and for next year 2025,&#8221; Governor John Rwangombwa told a news conference.



He added the bank&#8217;s monetary policy committee had the same inflation projections as at its May meeting.



On the economy, Rwangombwa said growth had been strong in the second quarter and was projected to remain so in the third quarter, building on the first quarter&#8217;s 9.7% growth.



Among inflation risks, Rwangombwa cited heightened geopolitical tensions affecting commodity prices and adverse weather conditions impacting food prices.



(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by Alexander Winning and Christina Fincher)

Rwandan Economy as World Bank Cuts Growth Estimate on Floods

Rwanda central bank lowers key rate for second meeting in a row

<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/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-820x524.jpg" alt="" class="wp-image-521181" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-1536x982.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/B2QSYQV4JRNZPJWD4IQ3X2TJ3I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A fountain with a statue is seen outside the Supreme Court in Nairobi, Kenya, August 20, 2021. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, Aug 20 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s top court on Tuesday suspended a lower court&#8217;s ruling that the 2023 finance law was unconstitutional, saying it was important to preserve stability in the budget until the merits of the government&#8217;s appeal are heard next month.



The finance bills, presented to parliament at the start of every financial year, are the main vehicle for the government to set out its revenue-raising measures including tax hikes.



The Court of Appeal&#8217;s judgment late last month that last year&#8217;s Finance Act was unconstitutional was a blow to the government of President William Ruto, who withdrew this year&#8217;s finance bill in June in the face of youth-led protests, the biggest challenge of his two-year presidency.



Ruto has been caught between the competing demands of Kenya&#8217;s hard-pressed citizens and of lenders such as the International Monetary Fund.



He has argued that tax increases are necessary to help fund development programmes and pay off a heavy public debt load.



&#8220;We find that public interest tilts in favour of granting conservatory and stay orders to &#8230; maintain stability in the budget and appropriation process pending the determination of this appeal,&#8221; Kenya&#8217;s Supreme Court said in its ruling.



The Supreme Court will hold hearings on Sept. 10 and 11 on whether the 2023 law is constitutional.



The government, which has been relying on the 2023 finance law to continue collecting taxes after Ruto withdrew this year&#8217;s bill, did not immediately comment.



The 2023 version was challenged in court following a round of violent street protests last year led by opposition parties.



Ruto&#8217;s government used the 2023 law to double the value-added tax on fuel, introduce a housing tax and raise the top personal income tax rate.



(Reporting by Hereward Holland; Editing by Alexander Winning and Conor Humphries)

Kenyan court to rule on appeal against halting of constitutional changes in Nairobi

Kenya’s top court suspends judgment nullifying 2023 finance law

<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-1815421853-scaled.jpg" alt="" class="wp-image-510612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1815421853-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">President of Kenya William Ruto during the United Nations Climate Change Conference COP28 High Level Segment meeting in Dubai, United Arab Emirates on December 1, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images)</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government&nbsp;will have to bring back some&nbsp;tax measures&nbsp;that&nbsp;it scrapped&nbsp;after deadly protests in June,&nbsp;the finance minister said,&nbsp;raising the risk of further&nbsp;unrest.



John Mbadi told Citizen TV in an interview broadcast on Sunday night that some of the measures would be tweaked and not all would be revived, but they were needed to pay for expenditure including wages for teachers.



Some people who were involved in the youth-led protest movement that rocked the East African nation said they were ready to go back onto the streets after the minister&#8217;s announcement.



&#8220;I was going to take a one month break from social media&#8230; but it seems that there is no rest for me,&#8221; Hanifa, who only uses one name, wrote on X.



&#8220;The struggle continues. @WilliamsRuto I dare you to bring back the finance bill,&#8221; she added.



President William Ruto&nbsp;abandoned&nbsp;the finance bill for this fiscal year on June 26, and later dismissed most of his cabinet, bowing&nbsp;to pressure from protesters who had&nbsp;stormed parliamentand&nbsp;launched demonstrations across the country.



The bill had contained new taxes and hikes to raise an extra 346 billion shillings ($2.70 billion) &#8211; plans that the protesters said would pile pressure onto a population already struggling with surging living costs.



Mbadi, who was brought into the cabinet from the opposition benches as Ruto tried to prop up his government, had ruled out further tax hikes during his first public remarks in the post on Aug. 4.



In the interview on Sunday,&nbsp;he said the government planned to reintroduce what he called an eco-levy on most goods &#8211; though plans to tax essential products such as sanitary&nbsp;pads,&nbsp;which were a focal point for protesters&#8217; anger,&nbsp;would be dropped.



&#8220;For eco-levy, we would target those areas that do not affect the common citizen,&#8221; he told the private broadcaster. The measures were needed to fund emerging government expenditures, and will be taken to parliament by Sept. 30, Mbadi said.



The government has been caught between&nbsp;the competing demands of hard-pressed citizens and of lenders such as the IMF,&nbsp;which is urging&nbsp;the government to cut deficits to obtain more financing.



After the bill was dropped, the government cut spending and widened the fiscal deficit.



Neither Mbadi, nor the finance ministry, responded to Reuters requests for comment on the interview.



The new moves would raise 150 billion shillings, Citizen TV reported. The minister rejected criticism of the levy by businesses operating in Kenya.



&#8220;This country is not a dumping place. If you are injurious to the environment, then you must pay to make good what you have caused,&#8221; he said.



The government was working to bring back 49 clauses from the original bill, some meant to streamline laws without raising or introducing new taxes, Mbadi told the broadcaster.



($1 = 128.2500 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Andrew Heavens)

COP28 In Dubai High Level Segment

Kenya to bring back some scrapped tax plans, risking more unrest

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="465" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-820x465.jpg" alt="" class="wp-image-520812" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-820x465.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-300x170.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-768x436.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-1536x871.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/ZGLBQGNTDZO7HGPUFMWOXGH5LE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Shoppers walk within Merkato, one of Africa&#8217;s biggest open air market, in Addis Ababa, Ethiopia, April 25, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia is ramping up efforts to restructure its $1 billion international bond as part of a broader debt rework. Investors have balked at indications that the government is seeking a haircut, setting the stage for tense negotiations.



Here are some key issues in the restructuring process:



<h2 class="wp-block-heading" id="h-why-is-ethiopia-restructuring-its-debt">WHY IS ETHIOPIA RESTRUCTURING ITS DEBT?</h2>



Pressed by acute foreign currency shortages and sluggish government revenues amid a civil war in the northern region of Tigray, the government said in early 2021 it would restructure its debt under the G20 Common Framework initiative.



Chad, Zambia and Ghana have all sought to restructure&nbsp;their debts&nbsp;under the programme designed to provide swift debt relief to developing countries.



Ethiopia&#8217;s process was drawn out by the Tigray conflict which ended in late 2022 and slow progress in meeting International Monetary Fund requirements to abandon its currency peg, ditch capital controls and introduce an interest rate-based monetary policy framework.



The East African nation, the continent&#8217;s second most populous with 120 million people, floated its birr currency on July 29, helping it secure a $3.4-billion four-year IMF loan programme.



The IMF deal unlocked more financing from lenders including the World Bank and paved the way for a fresh debt restructuring push.



<h2 class="wp-block-heading" id="h-what-are-the-expected-outcomes">WHAT ARE THE EXPECTED OUTCOMES?</h2>



Ethiopia&#8217;s external debt stood at $28.9 billion&nbsp;in March, according to the&nbsp;government.&nbsp;The IMF&nbsp;identified&nbsp;a $3.5 billion financing gap during the lending programme. Ethiopia needs to plug that through the debt rework, but how that will be attained depends on the restructuring negotiations.



The government said it hoped the restructuring would achieve $4.9 billion in debt relief, citing official creditor proposals, though without a specified time frame.



To achieve comparability of treatment, a Common Framework tenet that requires commercial creditors to be treated in a similar way to official counterparts, Ethiopian officials have indicated they will seek a 20% write down on the principal of its $1 billion bond.



That has angered bondholders who said last week it does not reflect Ethiopia&#8217;s economic fundamentals, and added that the government was not following a &#8220;good faith&#8221; approach to debt restructuring.



Ethiopia has not commented on the bondholder statement.



<h2 class="wp-block-heading" id="h-how-will-that-nbsp-dispute-nbsp-be-resolved">HOW WILL THAT&nbsp;DISPUTE&nbsp;BE RESOLVED?</h2>



The dispute revolves around whether Ethiopia has a liquidity problem &#8211; a short-term issue &#8211; or whether it faces a longer-term solvency crisis.



Export and tax revenues have been under pressure and FX reserves dwindling, hampering Ethiopia&#8217;s ability to service its debt, say those who see it as a solvency issue, even though at 40.3% of GDP, the debt is fairly low.



Kevin Daly, portfolio manager at abrdn, which holds the bond, said a potential solution could be found somewhere between the government proposed haircut and extending the repayment period.



The IMF&#8217;s debt sustainability analysis shows Ethiopia has seen protracted breaches of a number of indicators the fund usually uses to identify a solvency crunch, such as the external debt-to-exports ratio.



Diverging assessments could set the stage for tense negotiations.



&#8220;Unduly conservative assumptions, coupled with unambitious fiscal efforts, may lead to protracted restructuring negotiations,&#8221; the bondholder group warned.



<h2 class="wp-block-heading" id="h-how-are-the-reforms-working-and-what-are-the-next-steps">HOW ARE THE REFORMS WORKING AND WHAT ARE THE NEXT STEPS?</h2>



The birr currency has nearly halved in value this year to trade at 103.97 per dollar &#8211; according to data from Commercial Bank of Ethiopia, the country&#8217;s biggest lender, closing in on the black market rate of 115-120.



However, progress on the key objective of unifying the two rates was initially hampered by commercial banks&#8217; hesitance to&nbsp;do so&nbsp;swiftly. Traders also hiked prices of basic commodities such as cooking oil.



Authorities have responded by closing thousands of businesses that were deemed to have raised prices unjustifiably, and the federal government has sought to boost supplies of essential commodities by ramping up imports.



The IMF says the government will have to take further action, perhaps by tightening monetary policy, to curb inflationary pressures.



The Fund has scheduled an unusually fast pace of reviews in order to closely monitor the impact of reforms.



The first review, scheduled for mid-August, is already underway and will focus on aspects such as FX reserves and external debt.



Following reviews are scheduled&nbsp;for the end of September and in December, at which point both the IMF and government expect Ethiopia to have sealed a restructuring deal.



(Reporting by Duncan Miriri; Additional reporting by Dawit Endeshaw in Addis Ababa; Editing by Karin Strohecker and Andrew Heavens)

FILE PHOTO: Ethiopia’s economy struggles due to shortage of foreign currency

Key issues on Ethiopia’s road to debt restructuring

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-820x615.jpg" alt="" class="wp-image-520774" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/08/73J6YETXEBNUZIYCWXEI2WCORA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A vehicle of Uber operating taxi is seen at a parking lot in Nairobi, Kenya February 12, 2018. Picture taken February 12, 2018. REUTERS/Maggie Fick/File Photo</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;In eight years of working as a taxi driver in Kenya&#8217;s capital, Judith Chepkwony has never seen business this bad.



A bruising price war between ride-hailing companies Uber Technologies&nbsp;UBER.N, Estonia&#8217;s Bolt and local start-ups Little and Faras has driven fares down to a level that many drivers say is unsustainable, forcing them to set their own higher rates.



&#8220;Most of us have these cars on loan and the cost of living has risen,&#8221; Chepkwony told Reuters. &#8220;I try to convince the customers to agree to the higher rates. If they can&#8217;t pay, we cancel and let them find another driver.&#8221;



About half the passengers who get in touch eventually agree to pay more than the price flashing up on their app generated by the companies&#8217; algorithms, Chepkwony said, keeping her going.



But Uber has said such arrangements break its guidelines and told its drivers to get back into line, setting up a clash between the slick, automated world of the international ride-hailing industry and the messier realities of one of its biggest developing markets.



The East African nation of 50 million people has been rocked by deadly protests against tax hikes which, together with high prices of basic commodities and elevated interest rates, has been blamed for lower disposable incomes.



Kenya, Nigeria and Tanzania &#8211; with their growing economies and relatively low car ownership rates &#8211; are among the most important markets for Uber in Africa, its executives have said.



But there have been challenges along the way. Drivers have gone on strike in Kenya,&nbsp;twice this year and at least once last year, over low commissions.



Uber Head of East Africa Imran Manji told Reuters it was reviewing reports of customers being overcharged. &#8220;We encourage all riders to report such instances.&#8221;



Linda Ndung&#8217;u, Bolt&#8217;s manager for Kenya, said they were discouraging fare-hiking while the industry searches for a solution to balance the needs of drivers and customers.



While everyone waits, the drivers are finding ways to get round the industry&#8217;s united front.



Many say they use walkie-talkie app Zello to collectively agree on higher prices, meaning a customer will get the same rate even if they shop around.



Drivers have also produced a fare guide,&nbsp;which they print, laminate and post up inside their cars for customers to see.



One seen by Reuters set the minimum fare at 300 shillings ($2.33), above the&nbsp;200 shillings set by Uber and Bolt who sometimes offer further discounts.



&#8220;We first ask the client where they are going and how much is shown on the app. Then we propose a rate based on our chart which can also be done by quickly multiplying by 1.5,&#8221; Nairobi-based driver Erick Nyamweya said.



&#8220;If they agree, we take the ride. If not we either negotiate further or decline because the current rates are not sustainable with higher fuel and spare parts prices.&#8221;



There has been some movement. Local start-up Faras Cabs raised its fares by up to a fifth&nbsp;this month&nbsp;to accommodate drivers&#8217; demands, Chief Commercial Officer Osman Abdi said.



At the end of the day, it is the customer that pays, in money and time spent haggling.



&#8220;The negotiations end up taking so much time that it ends up beating the logic of trying to save time by taking a cab,&#8221; said one customer, Lameck Owesi. &#8220;It is frustrating.&#8221;



($1 = 128.5000 Kenyan shillings)



(Reporting by Edwin Okoth; Editing by Duncan Miriri and Andrew Heavens)

A vehicle of Uber operating taxi is seen at a parking lot in Nairobi

Hard-pressed Kenyan drivers defy Uber’s algorithm, set their own fares

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1822" height="1271" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE.jpg" alt="" class="wp-image-506368" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE.jpg 1822w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-820x572.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/XFNOXFRHRNJ3PLPFQZF66W3MBE-1536x1071.jpg 1536w" sizes="auto, (max-width: 1822px) 100vw, 1822px" /><figcaption class="wp-element-caption">Kenya&#8217;s President William Ruto speaks at a press conference where he announced spending cuts in government after protests against Kenya&#8217;s proposed finance bill 2024/2025, in Nairobi, Kenya, July 5, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, Aug 19 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government plans to reintroduce to parliament tax measures contained in legislation that was pulled in June after deadly protests, aiming to raise an extra 150 billion shillings ($1.2 billion), Citizen TV reported citing the finance minister.



The tax proposals to be brought back include an eco-levy on most goods, Finance Minister John Mbadi told the private TV station, adding that sensitive products like sanitary pads would be exempted from the levy.



The move to revive some of the measures is due to growing demands for expenditures by the government, the minister told the station.



($1 = 128.5000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Tom Hogue)

Kenya’s President announces government spending cuts after protest against Kenya’s proposed finance bill 2024/2025, in Nairobi

Kenya to reintroduce some tax measures to raise $1.2 bln, TV report

<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 16 (Reuters) &#8211; Kenya&#8217;s shilling was stable against the U.S. dollar on Friday, but traders said they expected it to come under pressure from foreign-currency demand from the manufacturing sector.



At 0900 GMT, commercial banks quoted the shilling at 128.50/129.50 to the dollar, the same level it closed on Thursday.



Foreign-currency inflows for a 50 billion Kenyan shilling infrastructure bond auction earlier this week have helped support the local unit in recent sessions.



&#8220;There&#8217;s a lot of (FX) demand kicking in,&#8221; one trader said. &#8220;What had lifted the shilling was the infrastructure bond (auction). Now the (market) fundamentals are coming back into play.&#8221;



(Reporting by Hereward Holland; Editing by Alexander Winning)

RLVCCF47LVIWPJR4O2PPITYMVI

Kenyan shilling stable but traders see FX demand picking up

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-scaled.jpg" alt="" class="wp-image-420995" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/11/GettyImages-1242149589-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; 2022/07/27: A Kenya Airways plane seen parked at the parking bay of the Jomo Kenyatta International Airport in Nairobi. (Photo by John Ochieng/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



NAIROBI, Aug 16 (Reuters)&nbsp;&#8211;&nbsp;The Kenya Airports Authority&nbsp;(KAA)&nbsp;said on Friday that it had contingency measures in place to prevent a strike by the country&#8217;s main aviation union that is set to begin on Aug. 19 from disrupting airport operations.



The Kenya Aviation Workers Union, which represents workers at airports and the national carrier Kenya Airways, said it would launch industrial action from Monday over a proposed deal with India&#8217;s Adani Airports Holdings to develop the country&#8217;s biggest airport in the capital Nairobi.



The union has said it thinks the Adani deal will lead to job losses and bring in non-Kenyan workers, and referred to it in a strike notice as the &#8220;intended sale&#8221; of Jomo Kenyatta International Airport.



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 East African travel hub.



&#8220;Discussions are ongoing between the Ministry of Roads and Transport, Ministry of Labour and Social Protection, KAA Management and Kenya Aviation Workers Union to reach an amicable agreement,&#8221; the airports authority said in a statement.



(Reporting by Humphrey Malalo; Writing by Hereward Holland; Editing by Alexander Winning)

A Kenya Airways plane seen parked at the parking bay of the

Kenya Airports Authority says Aug. 19 strike won’t disrupt operations

<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)

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)

East Africa

Rwanda central bank lowers key rate for second meeting in a row

Kenya’s top court suspends judgment nullifying 2023 finance law

Kenya to bring back some scrapped tax plans, risking more unrest

Key issues on Ethiopia’s road to debt restructuring

Hard-pressed Kenyan drivers defy Uber’s algorithm, set their own fares

Kenya to reintroduce some tax measures to raise $1.2 bln, TV report

Kenyan shilling stable but traders see FX demand picking up

Kenya Airports Authority says Aug. 19 strike won’t disrupt operations

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

News Tips

Advertise With Us

East Africa

Rwanda central bank lowers key rate for second meeting in a row

Kenya’s top court suspends judgment nullifying 2023 finance law

Kenya to bring back some scrapped tax plans, risking more unrest

Key issues on Ethiopia’s road to debt restructuring

Hard-pressed Kenyan drivers defy Uber’s algorithm, set their own fares

Kenya to reintroduce some tax measures to raise $1.2 bln, TV report

Kenyan shilling stable but traders see FX demand picking up

Kenya Airports Authority says Aug. 19 strike won’t disrupt operations

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

News Tips

Advertise With Us

Newsletters