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16 NAIROBI STAR Tuesday, 27 January 2009

Practical tips on handling
personal finance

▼ FOREX Exchange Rates
Stage set for new bank mergers
US DOLLAR 79.7167 79.6500 79.7833 BY JAMES MBUGUA Sh1 billion by 2012. The move follows the “return” on their sav-
STG POUND 108.5179 108.4191 108.6167 “All institutions whose passage of the Finance ings accounts. By custom,
KENYA’S 43-bank core capital is currently Bill 2008 and subsequent Islamic banks do not pay
EURO 103.0086 102.9071 103.1100 landscape may witness below Sh1bn should sub- signing into law by Presi- interest on savings.
SA RAND 7.8265 7.8104 7.8427 a sea-change with likely mit to the Central Bank of dent Kibaki on December Banks will from now
consolidations and merg- Kenya, a time bound core 15. make their licence renewal
KES / USHS 25.2536 25.1307 25.3765
ers after the CBK for- capital build up plan by Other regulations that applications within three
KES / TSHS 16.7003 16.6185 16.7820 mally published guidelines 1st March 2009,” CBK in are now codified into law months before the expiry
AE DIRHAM 21.4359 21.4110 21.4608 requiring all banks to be a statement posted on its include the requireament of their current licences on
capitalised to the tune of website said yesterday. by Islamic banks to pay a December 31.
JPY(100) 86.7108 86.6104 86.8112

IND RUPEE 1.6215 1.6195 1.6234
Source: Commercial banks
11.5051 11.5306 ▼ BRIEFS
Kenya gets US
Two prominent American

personalities have endorsed
Kenya as the next major
CROWN BERGER 6.67 24.00 destination for American
BAMBURI CEMENT 3.20 154.80 tourists. Former Congress-
man of the State of Georgia,
CFC STANBIC 2.68 57.50 Andrew Young and Bishop
NBK 1.82 39.20 BY JAMES MBUGUA Eddie Long of the New
Birth Missionary Baptist
THE reappearance of cur- Church, in Atlanta, have
rency notes bearing former both pledged to visit Kenya
BIGGEST LOSERS President Moi’s image is
nothing to worry about, the
this year to support tour-
ism. The two met separately
SHS Central Bank has assured. with tourism Minister
The return of notes bear- Najib Balala in Washington
PAN AFRICA -8.62 53.00
ing the former president’s DC where he is leading
OLYMPIA CAPITAL -4.17 9.20 portrait has raised specu- the tourism marketing
lation that CBK was being campaign in the US. The
TPS EA SERENA -3.92 49.00
forced to go back to the American market has a
COOPERATIVE BANK -3.41 8.50 archives to sustain the na- huge potential for Kenya.
KENYA OIL -3.19 57.60 tion’s cash circulation.
The notes started disap-
pearing in 2003 when notes
bearing former President Shilling stable
Bread firm profits Kenyatta’s portrait made a
Responding to queries,
BACK IN ACTION: CBK forced to sustain cash circulation versus the dollar
rise ahead of IPO the director, Currency Op-
erations and Branch ad-
ministration at the Central
have been brought back to
meet a shortfall, especially
in view of the scandal that
The reserve bank is man-
dated by law to control
the circulation of money
THE Kenya shilling was
unchanged against the
dollar on Monday as
BY PETER KIRAGU months reached Sh463 Bank, James Teko Lopoye- hit the CBK over a decision in the country by issuing banks assessed the market
million compared to Sh616 tum, said yesterday that to grant currency printer, and withdrawing currency after highly erratic trade
DPL Festive, the small million recorded in the people should not read too Thomas De la Rue, a con- notes as and when it is ap- in the previous session
bread maker that is prepar- full year ending 31 March much into the reappearance tract to print bank notes at propriate. following the appoint-
ing to issue an IPO, has 2008. of the notes as they were what was considered an ex- Sometime in 2007, the ment of a new finance
announced that its pre-tax DPL chief executive still legal tender. orbitant rate. bank decided to move into minister. Banks traded the
profit rose to Sh62 mil- Dipesh Shah said the results “We have never demon- “Any money that we new generation currency shilling at 79.75/85 per
lion in the six months to have been achieved despite etised any notes. At the time have issued before has not notes with added security dollar unchanged from
September 2008. the challenges experienced, when we introduced the been demonetised. They features to thwart fraud Friday’s close. The unit
This represents a 225 including the post-election portrait of the former presi- will circulate in the system and counterfeiting of notes. traded in a 79.65-80.00
per cent rise compared to upheavals and the dwin- dent (Kenyatta) we did not so long as they are clean,” “We only issue new bank band. Last Friday, the
Sh19 million recorded in dling disposable incomes demonetise these notes,” said Teko. “We are not re- notes as a top up,” he said shilling saw volatile trade
the previous year. This is a among consumers. said Teko. leasing anything new. They adding that CBK would as some traders panicked
major boost in its finan- The firm’s listing at the Teko dismissed sugges- (Moi bank notes) were just print new notes if it deemed after the naming of Uhuru
cial outlook as it awaits Nairobi Stock Exchange is tions that the money may held.” it necessary. as new finance minister.
approval of its impending awaiting approval by the
initial public offer. market regulators. It wants
Revenues for the six to raise Sh500 million.
IMF warns Africa over tough times
Did you invest in the CO-OP shares? POLICYMAKERS in developing countries that and export revenue. cautions that there is no
Keep track of your investment with real sub-Saharan Africa should had at first appeared resil- “Economic growth in the guarantee that this resil-
prepare for tough times ient to the downturn. countries of sub-Saharan ience can be maintained
time prices sent directly to your mobile. ahead, with no guarantee The IMF said in a state- Africa has been surpris- and that this will require a
SMS "COOP" to 5544. To get updates on that the resilience shown ment on its website higher ingly resilient in the face of determined response from
companies you own shares, SMS the so far to global economic food and fuel costs had put the latest shocks hitting the the economic policymak-
company name i.e. KCB to 5544. CO-OP shocks will continue, the pressure on inflation and global economy, notably ers, governments as well as
to 5544 International Monetary
Fund said yesterday.
external balances in sub-
Saharan Africa, and the
the food and fuel price
increases and financial
central banks.”
IMF Africa Director An-
Major world economies deepening financial turmoil market turbulence,” the toinette Monsio Sayeh said
are in recession, stung by a that has hit world growth IMF said in a statement. policymakers should try
global credit squeeze, and could knock growth “However, the Inter- maintain economic stability
growth is now slowing in through lower capital flows national Monetary Fund while protecting the poor.