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January 29, 2025

Hello there 👋🏿

It's Brian from The Kenyan Wall Street.

In today's edition of ‘The Daily Brief’, several commercial banks reduced their interest rates in December in line with the CBK directive…

We uncover bits of the corruption in major state agencies and parastatals and…

Why the COMESA Competition watchdog is hounding KQ and Zambia Airways…

FINANCE

Did Banks cut their interest rates?

Coin stacks on a financial graph background

Majority of Kenya’s commercial banks have slashed interest rates on lending and deposits to a 4-month low, months after the Central Bank of Kenya (CBK) began its ongoing easing policy.

The Central Bank began easing interests in August 2024 hoping it would nudge commercial banks to loan the private sector at cheaper rates. However, banks were dodgy on the decision to reduce their interest rates.

The CBK governor, Kamau Thugge, was not a happy man. After the December MPC briefing, he asked banks to be fair to their customers. If the Central Bank had done it, why shouldn't they?

We can report that only 23 banks slashed their interests rates in December. 14 banks hiked the rates. Only Equity Bank retained its November rate.

In this article, Zainab Hafsah delves into the banking sector highlighting how lending rates for different banks look like »»»

Today's Poll

Do you think commercial banks should reduce interest rates further in line with the CBK's rate cuts?

Yesterday's Poll Results

Do you agree with the African Union that Moody's credit-rating for Kenya last year was unfair?

🟩🟩🟩🟩🟩🟩 Yes (52.50%)

🟨🟨🟨🟨🟨⬜️ No (47.50%)

Corruption-meter : Parastatals on EACC’s watch

EACC headquarters in Nairobi

Several state agencies may have lost billions of money through misappropriation and procurement irregularities, according to a new report by EACC.

They include : The Kenya Ports Authority, Consolidated Bank of Kenya, the defunct National Health Insurance Fund (NHIF), Kenyatta National Hospital, Kenya National Highways Authority, Kenya Power, Geothermal Development Corporation, and Kenya Broadcasting Corporation. The Kenya Ports Authority (KPA), for instance, is under investigation for misappropriation of KSh 1.7 billion meant to compensate fishermen affected by the LAPSSET project.

The report has damning revelations on ongoing cases against entities wasting taxpayers’ money, engaging in economic crimes, and the rancid corpse of unethical conduct in government corridors.

Fred Obura expounds more in this article »»»

🗞️ Also by Fred :

Tax Revenues Rise by 4.5% Despite Economic Slow Down in Q3 2024

KRA has reported 4.5% growth in collection to KSh 1.243 trillion from KSh 1.189 trillion the previous financial year.

kenyanwallstreet.com/tax-revenues-up-ksh1-2trillion-despite-economic-slow-down-in-q3-2024

COMPANIES

KQ and Zambia Airways on the spot…

Kenya Airways

The COMESA Competition Commission is investigating whether Kenya Airways (KQ) and Zambia Airways violated aviation regulations by delaying flights and inconveniencing their customers.

Several customers complained that despite hours of delay, both airlines did not sort out their accommodation and meals — prompting them to make private, unplanned arrangements. The official hearings from the complainants and other stakeholders will be held in late February.

⏱️ Also Read

Orders on Uber Eats Surge by 88% as Local Dishes Dominate

A customer spent KSh 119, 000 on one order for alcoholic drinks, while another ordered 280 items from Chandarana Foodplus, via Uber Eats.

kenyanwallstreet.com/orders-on-uber-eats-surge-by-88-as-local-dishes-dominated

EABL Parent Company Diageo Sells Guinness Ghana to Castel for US $81mn

Diageo PLC, parent company of East African Breweries, has agreed to sell its 80.4% stake in Guinness Ghana to Castel Group for US$81 million.

kenyanwallstreet.com/eabl-parent-company-diageo-sells-guinness-ghana-to-castel-for-us-81mn

Mind your Money

Is Your Payment Subject to Withholding Tax in Kenya?

Withholding Tax (WHT) is one of the most misunderstood components of Kenya’s tax system. Many individuals and businesses grapple

kenyanwallstreet.com/is-your-payment-subject-to-withholding-tax-in-kenya

▶️ On the Energy Front

The African Development Bank (AfDB) and the World Bank have committed US$ 40 billion to narrow the electricity access gap in Africa by half by 2030.

The AfDB will commit $18.2bn while the World Bank will commit US$22bn towards Mission 300, a continental plan to connect 300 million people to electricity within the next five years.

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But the law ought always to trust people with the care of their own interest, as in their local situations they must generally be able to judge better of it than the legislator can do.