President Bush refused on Wednesday to budge on his administration’s opposition to doubling aid for Africa, a major proposal on the agenda for a summit meeting of industrial nations next month in Scotland. The long-simmering dispute could culminate next week when Prime Minister Tony Blair of Britain, who has advocated the plan, visits Washington in advance of the July session, a meeting of the Group of 8.
Category Archives: Donor AID
IFC (World Bank) Aid to Kenyan Banks
Barclays to fund SME’s
Th International Finance Corporations (IFC) will provide a loan Barclays Kenya of up to $20 million (Kshs 1.6 billion), the proceeds from the Loan will be used primarily to fund medium sized corporates which are in need of US$-denominated funding, and will free up the Bank’s local currency resources for on-lending to smaller corporates.
I&M Bank to fund trade finance
IFC will provide a loan to Investments and Mortgages Bank (I&M Bank) of up to $5 million to support the bank’s growing SME client base and export-oriented segment in Kenya. IFC will also consider providing I&M with equity of up to $2 million (Kshs.160 million) to shore up the bank’s core capital.
Barclays to fund solar energy projects
Barclays Bank of Kenya plans to offer loans to Savings and Credit Cooperatives (SACCOs), which are members of Kenya Union of Savings and Credit Co-operatives (KUSCCO). SACCOs provide financial services to a large section of the adult population in Kenya, and make loans to individuals who do not save with or borrow from mainstream banking institutions. SACCOs receiving loans under this project will provide “solar loans” to their members to purchase solar home systems to be installed by Solagen Ltd. and other leading Kenyan PV technical service providers. The total amount is estimated at $4,6 million (Kshs 368 million) and will be sourced from the IFC.
More Aid to Kenya
From Norway (a GJLOS Project)
Through the World Bank, Norway is funding a pilot project for the recording of court proceedings. Firms with extensive experience are invited to supply and install digital voice processing systems in some courts by applying electronically from johnson.weru@legalsector.or.ke by 27th May 2005.
From EU for Kenyan Roads
European Union support to Kenya roads i.e the Northern Corridor Rehabilitation Programme include:
– Sultan Hamud to Mtito Andei (131 km) at a cost of Kshs. 4.6 billion began in April 2003, and 72km are complete. – the rest should be done by January 2006
– Mai Mahiu – Naivasha – Lanet 95 km road section at a cost of Kshs 4.6 billion – to commence in May 2005 and end in September 2007 urgently needs to be done
– 150km of rural roads in Eastern province at a cost of Kshs. 300 million (complete)
– EUR 35 million to rehabilitate Westlands– Limuru and Timoboroa-Eldoret-Malaba highways urgently needs to be done
– Rural roads in tea & coffee producing areas of Central Kenya
From Japan
The Government of Japan has provided a grant of 1 billion yen (¥) (Kshs 720 million) in an import support program to finance import of raw materials and finished goods. Goods purchased don’t have to be of Japanese origin, but the funds may not be used for project funding. The minimum loan amount is ¥ 14.4m (Kshs 10.4 million), and the maximum is ¥108m (Kshs 77.8 million). Other terms are: payment in Kshs, 10% deposit to treasury on approval of application, balance (90%) payable within one year from date of shipment of goods, secured by bank guarantee. Apply at crownagents@ke.crownagents.com
World Bank and IMF “increasingly irrelevant”
From Bretton Woods Project blog, a statement which certain Kenyan ministers and leaders will be happy to hear.
Business Briefs
Bank profits lower in 2004: Banks have started to report their 2004 results: At First American Bank (owned by Sameer investments), despite a sizeable drop in net interest income, managed to increase its pre-tax profit by 43% – from 150 million to 214 million (a 43% increase), thanks to increased other income (commission and fees). This will be the situation at most banks as the low interest rates forced them to seek non-traditional income streams in 2004.
KPA crisis: Staff are on a go-slow to protest the treatment of their (suspended/not-suspended but barred from the premises) MD, Mr Brown Ondengo, as well as non-payment of a promised bonus.
Mukhisa vs. Bretton Woods: At the Davos World Economic Forum, Minister Mukhisa Kituyi has urged the World Bank & IMF to stay away from global trade negotiations, and leave them to the World Trade Organization (Standard Feb 4)
Nairobi-Miami Flights on Hold: Titus Naikuni, the Kenya Airways MD now says that Kenya Airways will not be flying to Miami, saying “he does not see a commercial justification for it at this point in time” (Standard Feb 4)
A380 Welcome in Nairobi: Meanwhile, the Managing Director of the Kenya Airports Authority, Mr. George Muhoho, said that Jomo Kenyatta Airport would be able to receive the new Airbus A380 giant double-decker aircraft in Nairobi when it begins operations. He said, “a suitable passenger bridge has been identified, and lounges will be redesigned to accommodate departing passengers. Also the runway and taxiways will be strengthened and widened.” (Nation Feb 3)