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Treasury taps CBK’s expensive overdraft facility

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Treasury secretary Henry Rotich. FILE PHOTO | NMG 

The Treasury’s expensive emergency borrowing from the Central Bank of Kenya (CBK) doubled last week to Sh15.06 billion compared to the previous week even as cheaper money was available in the market.

It was the third straight week the Treasury was borrowing through an overdraft from the CBK since the beginning of the fiscal year in July, according to the monetary authority.

In the week ending August 24, the government borrowed Sh7.84 billion, which was also double the amount it borrowed in the week before.

It was only in the first two weeks of last month that the Treasury did not acquire emergency funding from the CBK, signalling improved liquidity conditions in State coffers at the time.

The Treasury was incurring the overdraft costs last week even as the money market displayed signs of liquidity with the average interbank rate down to 5.52 per cent compared to 5.84 per cent in the previous week.

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The government pays an interest rate equivalent to the prevailing Central Bank Rate (CBR), which currently stands at 9.0 per cent.

The CBK hinted that the requirements for cash within the Treasury could have been related to payments it was making through the financial institutions, which in turn were liquid.

“Liquidity conditions improved in the interbank market during the week ending September 05, 2018, partly reflecting increased government payments at the end of the month. As a result, the weighted average interbank rate declined to 5.52 per cent from 5.84 per cent in the previous week,” the CBK said in the bulletin.

The overdraft amounts to deficit financing or creation of paper money, which is not backed by assets. In large amounts, the financing has the potential to spur demand-driven inflation by injecting too much cash in the markets when no real goods or services are produced at the same time to counter the effect.

By law, the government is restricted to borrowing up to five per cent of the most recently audited total revenue (which has been used in recurrent expenditure).



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NSE daily turnover rises up 146% to hit KSh 1.1 Billion

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Nairobi Securities Exchange(NSE) recorded a turnover of KSh 1,102,657,782 after a total of 30.6 Million shares traded in 1,051 deals when trading ended at the bourse this Monday.

Uchumi Supermarkets Plc was the top gainer, its share price rising 8.7% to KSh 0.25.

It was followed by Nairobi Business Ventures(8.16%), Car and General Plc (7.32%) and Nation Media Group Plc (5.98%).

NSE worst performers

The worst performers were led by Flame Tree Group Holdings Plc, whose price fell by 7.8% to KSh 1.30.

It was followed by Liberty Holdings Plc, which declined by 6.02%, TPS Eastern Africa Plc, which lost 5.45% and TransCentury Plc, which shed 4.24% as investors reacted to its decline in half-year earnings.

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Safaricom Plc remained the top mover with a volume of 24.8 Million traded shares, followed by KPLC (2.54Million), Equity Group Holdings Plc (1.22Million) and KCB Group Plc (961,400).

The benchmark All Share Index declined1.32 points to close at 164.44. The NSE 20 Share Index declined 4.17 points to close at 1859.08, while the NSE 25 Share Index declined 24.24 points to close at 3562.38

The Derivatives Market had 53 single stock futures contracts valued at KSh 1.60 Million concluded, compared to the 34 SSF contracts valued at KSh 1.23 Million concluded during the previous session.

The Secondary Bond Market moved bonds worth KSh 6.55 Billion transacted in 120 deals compared to KSh 2.22 Billion worth of bonds achieved in 97 deals in the prior session.

ALSO READ: Safaricom Volumes Drop at NSE as Investors react to the firm’s Declined Earnings

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Kenyans lose cash as Amazon Web Worker is deleted from site

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A section of Kenyans who have invested their cash in an online App known as Amazon Web Worker is counting their losses.

This is after the App was deleted over the weekend from the Google Play Store, without any official communication.

Gullible investors were lured into this deadly trap with different investment options on the App, offering returns of up to 38.5% for a deposit of 7 days.

When the App went down, hundreds of Kenyans who have opened accounts and created downlines or referrals made of close friends or relatives had cash in the system they could not access.

It has since been established that this App is not affiliated with International retailer Amazon. The website that hosted this platform is no longer available online neither are the pages on Facebook and Twitter.

Victims who shared their data on the Amazon Web Worker platform have been advised to inform their bank, change passwords for online accounts including M-PESA or report the matter to the police anti-fraud unit.

While Safaricom has revealed plans to partner with Amazon, officials at the telco said this is still a work in progress.

Thus, Amazon Web Worker App with an M-PESA component has been described as a work by fraudsters.

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Amazon Web Worker registration requirements

To register into the member system of this Mobile App, players were being asked for such personal details as full names, mobile phone number, and M-PESA Account particulars.

In the financial investment section, a member was told they could earn an interest of 38.5% if they locked their initial investment for seven days, 204.0% for 30 days, 600% for 75 days, 1020% for 120 days, 1620% for 180 days and 3420% for 360 days.

A link https://awwafrica.com/referral/dr6ggtvp. which has also shut, is what the designers of the Amazon Web Worker App were using to lure unsuspecting investors into the scam.

Safaricom is reportedly following up on M-PESA till numbers that could have been taken from the firm then edited and used by crooks to lure clients to the App.

In a text, the fraudsters explained the unavailability of the App in the Google Playstore to change the payment broker from a firm known as Renak to Kivaa.

The schemers said this was due to the increased number of subscribers and volume of transactions on the App, promising subscribers that the App will be up again on Tuesday, 18th May 2021.

ALSO READ: Regulators Caution Against Unlicensed Financial Services

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First berth at Lamu port to commence operations

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The first berth of the long-awaited Lamu Port is set to be launched and commence operations this Wednesday, 20th May 2021.

Lamu Port project

Lamu Port is a flagship project in the Lamu Port South Sudan and Ethiopia(LAPSSET) Transport Corridor, linking Kenya, South Sudan and Ethiopia.

It is set to have a total of 342 berths upon completion. Three berths have so far been constructed.

Kenya Revenue Authority(KRA) is among crucial agencies set up at the port and will facilitate cargo clearance while ensuring compliance with Customs laws.

The Commissioner for Customs & Border Control has gazetted the three berths as Customs Areas and configured essential customs systems-the Integrated Customs Management System(iCMS) and SIMBA to recognize Lamu as a port of entry and exit.

“A multi-agency committee comprising of technical expert teams from the LAPSSET implementation Agencies has been deployed at Lamu Port to ensure joint planning and preparation for the launch and commencement of operations,” said Ms Lillian Nyawanda- Commissioner of Customs & Border Control in her official Twitter account.

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The KRA technical team, led by Chief Manager, Marine and Southern Region Enforcement, John Kennedy Bisonga, spearheaded KRA’s level of preparedness ahead of the launch.

Last week, a high-level KRA technical team was on the ground to test the connectivity and performance of Customs systems and other office automation applications.

To mitigate risks associated with the movement of transit cargo, the LAPSSET corridor route has been on-boarded into the Regional Cargo Tracking System(RECTS) to monitor transit cargo into Ethiopia and South Sudan.

“This move has reduced cargo transit time to an average of 3.7 days and eliminated dumping of transit cargo by 97%,” said Ms Nyawanda.

Before she was appointed Commissioner Customs and Border Control in March this year, Ms Lilian Anyango Nyawanda served as the Customs and Excise Manager of Africa Region at the Diageo Centre of Excellence, overseeing the customs governance, risk management and international trade operations.

She started her career in tax at KRA in 2003 as a Revenue Officer (I) after undergoing the Graduate Trainee Program.

She rose to an acting Senior Revenue Officer in charge of gateway clearance sheds and cargo handling at the Jomo Kenyatta International Airport (JKIA).

ALSO READ: Kenya’s Lamu Port to Begin Operations in June 2021

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