Hello and welcome to today’s edition of The Business Roundup. In this edition, we bring you the latest updates on economic trends shaping Kenya’s business landscape, including the latest fuel prices announced by the Energy and Petroleum Regulatory Authority (EPRA).
EPRA has announced revised fuel prices for the period between February 15 and March 14, 2025.
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In its February 14 report, the authority announced that the prices of Super Petrol, Diesel, and Kerosene (IK) will remain unchanged.
In Nairobi, Super Petrol, Diesel, and Kerosene will continue to retail at Kshs.176.58, Kshs.167.068, and Kshs.151.39 for one month.
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Inside EPRA’s review report
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The average landed cost of imported Super Petrol increased by 2.80% from US$611,69 per cubic metre in December 2024 to US$628.80 per cubic metre in January 2025.
Diesel increased by 4.20% from US$644.10 per cubic metre to US$671.14 per cubic metre while Kerosene increased by 4.89% from US$649.64 per cubic metre to US$681.44 per cubic metre over the same period.
“In the period under review, the maximum allowed petroleum pump prices for Super Petrol, Diesel and Kerosene remain unchanged. The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2024 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” a statement from EPRA read in part.
EPRA announces February-March fuel prices
EPRA’s prices come after the authority’s Director General Daniel Kiptoo earlier in the week signaled an impending hike in pump prices.
Kiptoo alluded to an increase in fuel costs, attributing it to a surge in global crude oil prices recorded in January.
The monthly price adjustment factors in global oil price movements, exchange rate fluctuations, and other market dynamics.
In its weekly bulletin on February 7, the Central Bank of Kenya (CBK) had announced that international oil prices declined during the week ending February 6.
CBK stated that the price of Murban oil prices fell to USD 76.87 per barrel on February 6, from USD 78.54 per barrel on January 30.
During the week ending January 2, the price of Murban oil had increased to USD76.31 from USD 74.19 on December 24, 2024.
The bank explained that the decline in international oil prices came following the OPEC+ group of oil exporters restating their policy of a gradual unwinding of production cuts from April 2025.
In its January report, EPRA announced that the maximum allowable pump prices for Super Petrol, Diesel, and Kerosene would be increased by Ksh0.29, Ksh2, and Ksh3 per litre respectively.
Safaricom announces dividend
Safaricom announced that it will maintain its interim dividend at Ksh0.55 per share, totaling Ksh22.04 billion.
The dividend announcement follows a challenging half-year period that saw Safaricom’s net profits decline by 17.7% to Ksh28.1 billion.
The interim dividend, approved by the company’s board on February 13, will be paid to shareholders on record as of March 3, with disbursement scheduled for March 31 this year.
The dividend distribution will see the Kenyan government, which holds a 35% stake through the National Treasury, receive approximately Ksh7.7 billion.
In addition, Vodafone and Vodacom, joint owners of a 40% stake, will collect Ksh8.8 billion, while retail investors will share the remaining Ksh648 million.
This marks the second consecutive year the telco giant has kept its mid-year dividend at Ksh0.55, following a reduction from Ksh0.64 per share in 2022.
This is despite Safaricom facing significant hurdles in its Ethiopian operations impacted by currency challenges in Ethiopia where sharp depreciation of the local currency resulted in foreign exchange losses of Ksh17.7 billion at its Addis Ababa subsidiary.
Despite these setbacks, Safaricom’s market performance has remained steady, with its share price on the Nairobi Securities Exchange (NSE) surging by 34% over the past year to Ksh17.70.
KUSCCO multi-billion heist
Four suspects arrested in connection with the multi-billion-shilling fraud scandal at the Kenya Union of Savings and Credit Co-operatives (KUSCCO) will remain in custody until the determination of their bail terms on Tuesday, February 18, 2025.
The four who were presented at the Milimani Law Courts are facing various charges including conspiracy to defraud, stealing by company directors, and making a false document.
They had been arrested on Thursday for allegedly cooking financial statements and theft that put nearly Ksh13 billion belonging to depositors at risk.
The National Police Service in a statement on Thursday, February 13, said that the arrests came after it set in motion investigations into the KUSCCO scandal through the Directorate of Criminal Investigations (DCI) which led to the arrest of three persons.
Further to the case, one more suspect was arrested in Nyeri County.
The arrests come after the Inspector General of Police Douglas Kanja assured that NPS will leave no stone unturned in investigating the matter, as he received the KUSCCO forensic report from the Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya.
Oparanya had on Tuesday handed the PricewaterhouseCoopers (PwC) forensic audit to IG Kanja for an in-depth probe and prosecution of those culpable.
The CS agreed with the PwC on the need for recovery of the lost billions of shillings that have left KUSCCO insolvent to the tune of nearly Ksh13 billion and placed the savings of 247 Saccos at stake.
More banks reduce loan interest rates
Following the recent decision by the CBK’s Monetary Policy Committee (MPC), more banks have continued to announce a reduction in their loan interest rates
M-Oriental Bank was the first to announce a reduction by at least 0.5 per cent, confirming that its lending rates would drop from 16.5 per cent to 16.0 per cent.
Cooperative, KCB, and Equity followed suit making subsequent announcements of reduced interest rates.
This week, NCBA lowered its rate to 15.34% per annum, with the new rates taking effect from February 16, 2025.
I&M Bank, on its part, announced a 2 per cent cut in its lending rates, effective March 1, 2025.
Absa Bank Kenya also lowered its Base Lending Rate to 10.75% p.a. after a 100-bps cut, effective immediately for new loans and from 13th March 2025 for existing loans.
The Absa Base Rate (ABR) was reduced by 300 bps to 13.5% in January, following the CBK’s recent CBR cuts.
Other banks that have followed suit include Gulf African Bank (0.5% reduction) and Development Bank (0.2%).
ALSO BIG THIS WEEK
- President William Ruto has criticized global agencies and expressed his support for the establishment of the Africa Credit Rating Agency (AfCRA).
- Britam General Insurance settled a Ksh71,143,016 compensation claim for Limuru Country Club following the fire that razed its clubhouse on January 4, 2024.
- Airtel Kenya has launched a new monthly bundle offer named Smarta Bundles.
- The Kenya Revenue Authority (KRA) dismissed 19 staff members in the second quarter of the financial year 2024/2025 (October-December), compared to nine (9) dismissals during the same period in the 2023/2024 financial year.
- Kenya’s NSE now has a total of 6 firms in the Morgan Stanley Capital International (MSCI) Frontier Markets Index with the addition of Standard Chartered Bank Kenya and 8 firms in the MSCI Frontier Small Cap Index with the addition of HF Group PLC.
Currency Trends
According to the latest data by Central Bank of Kenya (CBK), the Kenya Shilling exchanged at Ksh129. 2242 against the dollar on February 12. The Kenyan shilling weakened slightly against the U.S. dollar on Friday, as it had exchanged at Ksh129.2096 on Thursday.
Govt Tenders, Auctions and Jobs
- The Kenya Electricity Transmission Company Limited (KETRACO) invited tenders from interested/eligible firms to bid for three tenders: Services for General & Group Life Classes of Insurance for the Period 2025-2027, Procurement of Spares for Emergency Replacement for Pole 2 Valve Equipment at Suswa Converter Station, and Procurement Scada Equipment.
- On its part, the Salaries and Renumeration Commission (SRC) advertised 15 vacancies for suitable candidates to apply. Deadline for submission of applications is February 26, 2025.
- The Rural Electrification and Renewable Energy Corporation (REREC) invited tenders for Contract Names and Description as listed in a tender schedule. They include Supply, Installation, Testing & Commissioning of Solar Powered High Mast Flood Lighting in Busia and Vihiga Counties, Supply, Installation, Testing & Commissioning of Solar Powered High Mast Flood Lighting and Solar Street Lights in Nairobi, Machakos, and Kiambu Counties and Supply And Delivery of Concrete Stay blocks Open to Manufactures.
- Also, REREC invited tender bids for Construction of Kiunga Power Station Hesco Bastion Wall and tender for Supply and Delivery of Composite Poles Open to Manufacturers
- Kenya Power invited tenders from interested bidders for the provision of items such as network fault indicators with the closing date of the tender being March 6, 2025.
- The Kenya Institute of Curriculum Development (KICD) advertised 18 vacancies for suitable candidates to apply. Deadline for submission of applications is March 3, 2025.
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