Kenya has committed to support Ugandan authorities to complete their oil jetties in Entebbe and Jinja to enhance the viability of Sh1.7 billion Kisumu’s new oil terminal.
Petroleum Cabinet Secretary John Munyes termed as unfortunate that the billion-investment remains idle due to the delays by the neighbouring country to finish construction of its facility.
Due to the delay, official launch of the Kisumu project, which was completed over five months ago, remains uncertain as Kampala continues to work on their oil jetties and storage terminals.
While he did not indicate the kind of assistance the Kenyan government will offer, Mr Munyes expressed optimism that the investment will pay back in three years.
“Through the jetty, Kenya Pipeline Company (KPC) is expected to ferry 4.7 million litres of petroleum products, which is equivalent to over 100 trucks on the road per day and greatly reduce accidents and traffic,” said Munyes.
Mr Munyes announced that a government delegation will visit Uganda in a fortnight to check on the progress and challenges that their counterparts could be facing.
“We appreciate that different countries are operating under different circumstances and we want to establish what problems they could be facing,” the CS said after visiting KPC depot in Kisumu last week.
“I can assure Kenyans that this is not going to be a white elephant and they stand to benefit a great deal from the initiative which is projected to spur East Africa’s oil transport,” he said.
The CS pointed out that the roll out of the project will massively bring down the cost of transporting petroleum products, which is estimated to drop by between 40 percent and 50 percent.
KPC managing director Joe Sang’ said the jetty will re-position the firm and enable the company to regain the market share it lost to neighbouring Tanzania, mainly due to the unavailability of petroleum products in western Kenya.
The Kisumu oil terminal is expected to increase petroleum supply to landlocked Uganda, Rwanda, Burundi and the Democratic Republic of Congo.
“This is a big milestone for the country and we hope to launch it soon and save the country the heavy burden of trucking crude oil,” he said. He confirmed that a test run has been conducted at the Kisumu facility which was found to be in good shape.
At the same time, the KPC boss revealed that they will install a leak detection system (LDS) and the supervisory control and data acquisition (SCADA) systems to prevent pilferage of fuel on their lines.
“The implementation of the modern techniques will put an end to siphoning of petroleum products as the sophisticated system can detect up to one per cent leak,” he said.
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.