NAIROBI (Xinhua) --
Kenyan shilling fell to a five-year low on
Tuesday against the U.S. dollar saddled by high liquidity in the
market and increased end-month demand for the greenback by
The Central Bank of Kenya quoted the
currency to the dollar in the Tuesday trading at 104.10, down
from 104.02 at the close of Monday.
Commercial banks, however, quoted the local unit on Tuesday
at a much lower level of 104.25, which was last witnessed in
The Kenyan currency has been under pressure from
international currencies with the central bank last week being
forced to use 179 million dollars of its 9.75 billion dollars
reserve to prop it up.
Despite the fall of the reserves to 9.568 billion dollars,
the central bank notes the forex exchange provides adequate
cover and a buffer against short-term shocks in the foreign
Last week, the shilling’s downward trend was accelerated by
graft charges facing former treasury cabinet secretary Henry
Rotich, who was sacked.
Kenya overall inflation
rate rises to 6.27 per cent in July
NAIROBI (Xinhua) --
Kenya’s overall inflation rate rose to 6.27
percent in July, up from 5.7 percent in June, despite a decrease
in the cost of some food products, the government data agency
said on Wednesday.
Zachary Mwangi, director general of Kenya National Bureau of
Statistics (KNBS), said the consumer price indices (CPI) fell
0.36 percent, from 204.34 in June to 203.61 in July.
"In July 2019, the food and non-alcohol drink’s index
decreased by 1.04 percent, compared to a decline of 1.6 percent
in June 2019," Mwangi said in a statement issued from Nairobi.
The KNBS noted that the alcoholic beverages, tobacco and
narcotics index surged 0.82 percent due to an increase in the
price of cigarettes.
In July, the housing, water, electricity, gas and other
fuels’ index rose 0.14 percent as a result of higher electricity
The statistics bureau added that the transport index
increased by 0.22 percent, on account of increases in pump
prices of petrol despite a drop in the pump prices of diesel.
The prices were obtained from selected retail outlets in 25
data collection zones in Nairobi and 13 other urban centers.
Kenya and Abu Dhabi Global
Market sign MoU on sustainable finance
NAIROBI (Xinhua) --
Kenya’s Capital Markets Authority (CMA) and the
Financial Services Regulatory Authority (FSRA) of Abu Dhabi
Global Market on Tuesday signed a memorandum of understanding (MoU)
to enhance cooperation in sustainable finance in each other’s
Paul Muthaura, chief executive of CMA, said in Nairobi that
the partnership was formed following close discussions and
continuous coordination between the two parties to scale up the
development of sustainable finance in both jurisdictions.
"The MoU provides a framework for CMA and FSRA to exchange
information pertinent to products, services and initiatives as
well as to develop legislative, regulatory and institutional
frameworks to enable the two sides to facilitate and support
sustainable finance," said Muthaura.
He said the strategic partnership between CMA and FSRA
underscores the importance of sustainable finance and the
intangible value drivers within environmental, social and
"This initiative has come at an opportune time as sustainable
finance is expected to play an important but niche role in
driving the growth of Kenya’s capital markets.
"This is in line with the Marrakech Pledge which calls for an
increase in the volume, flow and access to finance for climate
projects, alongside improved capacity and technology from
developed to developing countries," Muthaura said
Richard Teng, CEO of the FSRA, said that his organization
will work closely with the CMA team and more like-minded
partners to foster responsible and sustainable methods that
support the development and growth of respective economies.
He noted that the partnership and relationship with CMA began
in 2017 on financial technology where there was sharing of
mutual objectives of fostering innovation, financial inclusion
and regulator cooperation.
Kenya adds 79MW
electricity to national grid with new plant
NAIROBI (Xinhua) --
Kenya’s electricity utility said
Tuesday it has added 79 megawatts (MW) of power to the national
grid following the completion of a new plant dubbed Unit 1 of
Olkaria V geothermal power plant.
The Kenya Electricity Generating Company (KenGen) said the
new plant was first synchronized to the grid on June 28 and
thereafter subjected to commissioning tests.
Currently, 70 percent of Kenya’s installed electricity is
derived from renewable sources, which is more than three times
the global average.
Besides electricity generation, KenGen has announced plans to
start offering expert services in energy matters such as sale of
steam, provision of consultancy services, commercial drilling,
heating and other services across Africa.
"Consistent with our long-term plan, we are continuously
working on increasing our renewable energy to provide affordable
energy to Kenyans while safeguarding the environment.
"This, in turn, will lead to the provision of stable energy
to power households and industries across the country," Rebecca
Miano, managing director of KenGen said in a statement issued in
Miano said the additional capacity would play a significant
role in supporting Kenya’s power needs while enhancing the
amount of green energy in the national grid.
She said the completion of the Unit 1 of Olkaria V geothermal
power plant and subsequently injecting 79 MW to the national
grid brings to 612MW the total amount of installed geothermal
power capacity by KenGen.
Miano said the total amount of installed geothermal power
capacity will be significant in ensuring that the country’s
power needs are met through the continuous use of green energy
Currently in its last stages of development, Olkaria V
geothermal power plant is expected to inject a total of 158 MW
to the grid once Unit 2 is synchronized to the grid at the end
This will further enhance KenGen’s position as the leading
electricity generating company in East Africa and greatly
support the country’s Big Four Agenda and the Vision 2030