The Kenya Airports Authority (KAA) says it has received an application from Kenya Airways #ticker:KQ to manage operations at the Jomo Kenyatta International Airport (JKIA), in a restructuring plan aimed at aiding the airline’s recovery and boosting its revenues.
KAA managing director Jonny Andersen said Friday that the application, which outlines how KQ will support and grow the aviation business in Kenya, will be granted if its meets approval from the airports regulator.
“In addition, KAA must satisfy itself that the proposal is feasible and provides for value for money to both KAA and the public before implementation,” said Mr Andersen in a statement.
To be able to ascertain the viability of the project, KAA has appointed an adviser to assist and guide comprehensive due diligence and an evaluation process for the project.
The process, according to Mr Andersen, is structured in line with requirements of the Public Private Partnership Act.
Kenya Airways is set to merge with KAA as part of a grand plan to deepen the airline’s recovery and cement Nairobi’s status as a regional transport hub.
According to a policy paper seen by the Business Daily which got the cabinet’s approval in June, the aim is to reposition KQ in a similar fashion as its main rivals, including Ethiopian Airlines, which have relied on government backing to expand their reach.
The move, dubbed ‘Project Simba’, also appears to be a reaction to the financial difficulties the carrier has continued to experience even after last year’s completion of a major reengineering drive, causing concern that it may not be able to withstand competition in the near future.
Through a public-private partnership (PPP) which is yet to be signed, Kenya Airways will take over all the staff and operations of the KAA.
The move will at once expand the range of the airline’s services to include ground handling, maintenance, catering, warehousing and cargo.
It is also envisaged that a special economic zone will emerge around the country’s main aviation hub, JKIA.
The government is further expected to support the joint venture by exempting the national carrier from certain taxes and allowing it to retain several levies as part of the plan to stop financial haemorrhage at KQ and bolster JKIA’s status as East Africa’s aviation hub.
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.