Connect with us

Business

Varsity cash woes to persist on Sh1bn cut

Published

on

Loading...

[ad_1]

Economy

Kesses MP Swarup Mishra
Kesses MP Swarup Mishra, one of the lawmakers who opposed President Uhuru Kenyatta’s tax proposals on September 20, 2018. PHOTO | JEFF ANGOTE | NMG 

The cash crunch at public universities is set to worsen after Parliament on Thursday voted to cut funding by Sh1 billion to accommodate President Uhuru Kenyatta’s proposed austerity measures.

Funding for recurrent spending such as salaries, buying learning materials has been cut by Sh841 million while development budget for items such as building lecture halls has been reduced by Sh229million.

The cut comes amid a crisis at the public universities that has seen some of them reduce jobs, freeze hiring and research funds to lower budget deficits.

“The reduction of funds under the university education programme may result in the accumulation of pending bills” warns the National Assembly Budget Committee.

Universities had petitioned the Treasury for additional funds.

This is linked to the sharp drop in the number of Kenya Certificate of Secondary Education candidates scoring the C+ and above — the minimum grade for university entry.

Loading...

The Kenya National Bureau of Statistics (KNBS) data show university enrolment declined to 439,655 last year from 479, 312 in 2016 and more than Sh500,000 in 2015, making it the first drop since the government started disclosing student numbers in the 1990s.

The number of students enrolling for the parallel degree, which has been the institutions’ money minting machine over the past decade, has also dropped.

University of Nairobi (UoN) and Egerton universities have announced job cuts.

For instance, UoN said it received Sh391 million from the Treasury to the pay of its 4,945 workers against a need of Sh870 million, leaving it with a deficit of Sh500 million.

Since 2016, the government has been funding universities based on courses they offer, which has reduced their capitation.

The KNBS data shows that funding for State department of university education declined by more than a third to Sh5.45 billion in 2017/18 from Sh7.93 billion in the last financial year.

Education secretary Amina Mohamed asked universities to consider sacking some staff for sustainability.

She said universities must address the ratio of technical staff to support staff at the institutions, adding that the number of support staff is too high.

“We are encouraging and supporting rationalisation to guarantee the sustainability of institutional operations,” said Ms Mohamed.

[ad_2]

Source link

Loading...
Continue Reading

Business

World Bank pushes G-20 to extend debt relief to 2021

Published

on

Loading...

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.

Loading...

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.

ALSO READ:Global Economy Plunges into Worst Recession – World Bank

Loading...
Continue Reading

Business

Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans

Published

on

Loading...

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.

Loading...

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.

SEE ALSO: Central Bank Unveils Measures to Tame Unregulated Digital Lenders

Loading...
Continue Reading

Business

Scope Markets Kenya customers to have instant access to global financial markets

Published

on

Loading...

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.

Loading...

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.

Advertisement. Scroll to continue reading.

Loading...
Continue Reading

Trending