Govt in Talks With 6 International Firms to Expand JKIA After Cancelling Adani Deal

Hello and welcome to the Money News Roundup Newsletter where we are covering the latest update on the planned revamp of JKIA after the cancellation of the Adani deal as well as latest government directives to saccos.

Situation Awareness: Moses Kuria on Tuesday night resigned from his position as a senior economic advisor to President William Ruto. Kuria revealed that he would move on to pursue personal interests. 

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Govt to Begin JKIA Expansion by December - CS Chirchir

Transport Cabinet Secretary Davis Chirchir has announced plans to commence JKIA expansion construction works by the end of this year.

Speaking to Citizen TV, the CS explained that the redevelopment was necessary given the current state of the international airport which is an entry point for many tourists.

The CS indicated that the government was in talks with various financial institutions on how to implement the project.

The China Exim Bank, Abu Dhabi Fund for Development, Japan International Cooperation Agency (JICA), French Development Agency (AFD), KfW Development Bank, and the European Investment Bank (EIB) are among the key international financial institutions involved.

“We are really conscious about this. Remember our airport got burnt and is on a tent, and so we are really conscious and we are working round the clock to see that on a very tight timeline whether we can break ground before the end of this year.

“It doesn’t help us as a tourism destination to deny frequencies into Nairobi because when you look at the revenue mix from tourism to imports and exports. More importantly to exports, we are one of the fourth-largest producers of flowers today,” the CS remarked.

The announcement by the CS comes after the government cancelled the controversial Adani deal which was opposed by Kenyans.

The Adani deal was cancelled after officials of the Indian company were accused of conspiracy to commit securities and wire fraud in the US.

Govt Issues Fresh Directives to Saccos

The Commissioner for Cooperative Development has directed all Saccos that have members above 5,000 to adopt a delegate system for their Annual General Meetings (AGMs).

In a circular addressed to the cooperatives, Commissioner David Obonyo explained that the move was necessary and aimed at enhancing the representation of members during the decision-making meetings.

In the new system, the minimum number of delegates for the meeting will be 150. The maximum number of delegates was set at 500.

"All cooperatives with more than 5,000 members are hereby directed to update their bylaws to anchor the delegate system and devise an effective mechanism to apprise the general membership of the affairs of their cooperative.

“These directives should be implemented within six (6) months, effective from the date of this circular," read the circular in part.

Digital Lenders Face Probe After Borrowers Expose Exploitative Tactics

As reported by the Business Daily, the Competition Authority of Kenya (CAK) has launched investigations into several digital lenders following a spike in consumer complaints over exploitative loan practices.

Borrowers have raised concerns over excessive interest rates and hidden clauses in loan agreements.

Among the tactics flagged include charging interest rates as high as 40 percent for loans repayable in just one month. Some lenders have also demanded repayment in foreign currencies like US dollars instead of Kenyan shillings.

Other complaints point to non-disclosure of key loan terms, unclear pricing, and unexpected changes in repayment conditions.

Govt Announces 4% Levy for Sugar Millers and Importers 

As reported by KBC, the Ministry of Agriculture has announced the commencement of the Sugar Development Levy.

As detailed in a statement dated Tuesday, July 8, the levy took effect on July 1 and will be charged at a rate of 4 percent of the factory's price for the domestic sugar.

Importers on the other hand will pay 4 percent of the cost, insurance, and freight value of each consignement.

"The Levy shall be remitted by the tenth day of the month immediately following the month when the domestic sugar is sold, and by the tenth day of the month immediately following the month when the sugar was imported," read the statement in part.

"The Cabinet Secretary, Ministry of Agriculture and Livestock Development has appointed the Kenya Revenue Authority (KRA) as the collection agent. KRA will issue a communication advising on the mode of collection."

Kenyans Among Most Daring Investors in the World - Report

As reported by Kenyans.co.ke, Kenyans have emerged as the second most daring investors globally, according to a new report by BrokerChooser.

The report highlights countries whose citizens are actively pursuing high-risk, high-reward investments despite facing financial instability. 

Kenya scored an impressive 8.40 out of 10 on the ‘Financial Audacity Score’, coming in just behind South Africa, which topped the list with 8.63.

Other countries in the top five include Pakistan (8.37), the Philippines (8.30), and India (8.18). These nations were identified as having populations that are highly inclined to invest, even when they may not have the financial means to do so comfortably.