Latest news with #MusaliaMudavadi
Zawya
10 hours ago
- Business
- Zawya
Kenya to pay highest contribution to EAC budget in proposed new model
Kenya will contribute more to the East African Community budget in a proposed new financial model that is meant to cure perennial defaults by member states, which has left the bloc financially crippled. Kenya's Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi announced the proposed model to the Kenyan parliament on Thursday based on each partner state's average nominal GDP per capita for the past five years as assessed by the World Bank. In this plan, East Africa's largest economy will contribute $12.1 million annually, (23.7 percent) to the EAC, based on an equal contribution of $8.5 million by each country. Tanzania will contribute $9 million, Uganda $8.5 million, Rwanda $8.3 million, South Sudan $6.6 million and Burundi $6.4 million. The EAC is assessing the latest entrants, Democratic Republic of Congo and Somalia. Currently, partner states contribute equally to the budget of the Community – $7,007,747. The heads of state, at their 23rd Ordinary summit that met on November 24, 2023, agreed on a financing formula of 65 percent equal contribution by partner states and 35 percent assessed contribution.'On the basis of the proposed model, our computation shows that Kenya would make an additional contribution of $3.6 million, thus bringing her annual total contribution to $12.1 million, which accounts for 23.8 percent of the total annual budget for the Community,' Mr Mudavadi told MPs, when he appeared before the National Assembly Committee on Regional Integration. The model is meant to address economic disparities among partner states while ensuring sustainable financing for EAC operations and programmes.'Certainly, the 65 percent equal and 35 percent assessed rule benefits smaller economies like Burundi, Somalia and South Sudan, which have struggled to meet traditional contribution requirements due to limited fiscal capacity and competing domestic priorities,' the minister said. The framework aims to provide sustainable financing while ensuring that all partner states maintain ownership and responsibility for EAC operations and programmes. The formula is expected to cure the budget deficit problem occasioned by poor remittances, with only $32 million having so far been paid out from a $56 million contribution target for the 2024/25 financial year.'In the last two decades, Kenya has contributed a total of $186 million to the EAC. These contributions are anchored on Article 132 (4) of the EAC Treaty,' Mr Mudavadi said. The new proposal came after a study on the required reforms to align the EAC structure, programmes and activities with the financial resources available in partner states. This was to ensure sustainability of the Community while addressing the dependency syndrome. The study identified key priority projects, programmes and activities that could be implemented with available resources now and in the future without slowing the integration momentum and constraints with the existing funding structure by partner states and development partners that causes delays and non-compliance. The proposed hybrid model will be reviewed after three years of its implementation. Mudavadi admitted that the EAC is facing a financial crisis, with the July 2025 staff salaries not paid.'Although the East African Legislative Assembly has passed a rationalised budget for the 2025/26 financial year, which is a total reduction of $20,000, translating into a reduced contribution per partner state to the Community of $2,500, the Community continues to struggle in its operations and the July salaries and other statutory obligations lay in abeyance,' the minister said. 'The Secretariat continues to struggle in its operations due to funding challenges as it has been borrowing from the confederation kitty, which is now exhausted.'The Chairperson of the EAC Council of Ministers, Beatrice Askul Moe, tabled before the Eala the budget estimates for the 2025/2026 Financial Year totalling $109.3 million. So far, Kenya, Uganda, Tanzania, and Rwanda, have paid the full amount for the financial year 2024/25. South Sudan had paid $300,000 as at July 15, 2025, DRC owed $20.7 million and Burundi $15.7 million for FY2024/25. The EAC Secretary-General Veronica Nduva has dispatched debit notes to partner states with arrears. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
17-06-2025
- Business
- Zawya
Kenya banks on Panda bond to fund SGR to Malaba
Kenya has kicked off the process of issuing its first Panda bond as it seeks to plug financing gaps ahead of extending its standard gauge railway (SGR) from Naivasha to Malaba at the border with Uganda – a project heavily reliant on Chinese support. A Panda bond is a sovereign facility issued in the Chinese domestic market and denominated in Yuan Renminbi (RMB), targeting Chinese investors and institutions. Kenya mulls issuing it on the Shanghai Stock Exchange, seeing it as a useful path to fetch new monies for big-ticket projects. National Treasury and Economic Planning Cabinet Secretary John Mbadi says the plan is to diversify Kenya's external financing sources.'We are in the process of actualising, raising more funds through Sukuk and even the Panda bond,' Mr Mbadi told journalists after presenting the 2025/26 budget statement to Parliament on Thursday, referring to sovereign bonds issued in Arab and Chinese markets respectively.'We're diversifying. We're even going to the UAE for other bonds. We don't want to confine ourselves to specific bonds like it has been previously, because there would be serious risk in the event of certain turbulence in those particular markets.'While Mr Mbadi did not disclose the exact purpose of the Panda bond proceeds, sources familiar with the matter say the Yuan-denominated facility is specifically aimed at bridging the funding shortfall for the SGR extension project, seeking to raise at least $1.5 billion. This week, Musalia Mudavadi, Prime Cabinet Secretary and Foreign and Diaspora Affairs Cabinet Secretary, said Kenya was banking on Chinese support to ensure the bond is floated at the start of the next fiscal year.'Panda bond discussions have started and Kenya looks forward to the support of China,' he said after meeting with Chinese counterpart Wang Yi in Changsha, the capital of Hunan province in southern china. China has long stopped issuing concessional loans to African countries but hasbeen gradually opening up to public-private partnerships, grants and permitting foreign governments to fetch funds via sovereign bonds. Kenya had initially agreed with China to co-finance the project, each contributing 30 percent of the required funds, with a consortium of private investors expected to cover the rest. But Nairobi has since expressed difficulty in raising its share and requested additional Chinese support. During President William Ruto's state visit to Beijing in April, the two countries signed a deal to jointly finance the 475-kilometre rail from Naivasha to Malaba, where it is expected to link with Uganda's own SGR extending to Kampala. I also underscored the importance of concluding discussions on financial cooperation before the end of June 2025 as a critical step forward,' Mr Mudavadi said in a dispatch after a meeting with Wang Yi on Tuesday. Lack of a rail link between Kenya and Uganda has meant that most cargo from the Mombasa port is transported by road to Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo. This overreliance on road transport increases both time and cost. But financing constraints in both Kenya and Uganda have long delayed efforts to complete the Naivasha–Kampala railway connection, pushing both governments to court new financiers for their respective sections. China was the key financier of the first two SGR phases—from Mombasa to Nairobi, and then from Nairobi to the Naivasha dry port—through loans from the China Export-Import (Exim) Bank. The 729-kilometre stretch was built by the China Road and Bridge Corporation, a state-owned firm, at a total cost of about $5 billion. China pulled out of the Malaba extension after Naivasha, citing concerns over its commercial viability and Kenya's rising debt, which raised the risk of loan default — including on Chinese credit. After years of seeking alternative financing, Kenya returned to Beijing, leading to the April agreement in which China will finance only up to 30 percent of the costs, a sharp drop from the 90 percent it had provided for the earlier phases. The Panda bond is expected to cover part of Kenya's reduced contribution. The Treasury has also increased the railway transport budget by Ksh12.8 billion ($99 million) to Ksh38 billion ($293 million) in the 2025/26 fiscal year, up from Ksh25.2 billion ($195 million) in the current year, signalling renewed investment in the sector. If successful, Kenya would become only the second African country after Egypt to access the Chinese capital market through a Panda bond. Cairo raised $480 million via such a bond in October 2023. With concessional funding drying up — following the expiry of an International Monetary Fund (IMF) programme in March — bonds issued in China, Japan, or the UAE appear more attractive, especially as Eurobond yields remain high. As of March, Kenya's total public debt stood at $87.8 billion about 71 percent of GDP, placing the country at high risk of debt distress. International lenders have urged Nairobi to slow down on borrowing, especially for large infrastructure projects. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
16-06-2025
- Politics
- Zawya
Diplomacy in Motion: Kenya and Finland Align for a Changing World
H.E. Dr. Musalia Mudavadi, EGH, Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, represented President William Samoei Ruto at 13th Kultaranta Talks held on 16–17 June 2025 in Naantali, Finland. Hosted by President Alexander Stubb, this year's talks focused on 'The Changing World Order – Old Meets New,' convening global leaders to address shifting power dynamics and international cooperation. Kenya participated in the high-level panel 'Accumulation of Shocks at the Global Level – What the West Should Understand,' moderated by Fareed Zakaria. Dr. Mudavadi addressed the rising fragmentation of the global system, noting that multilateral diplomacy is weakening as nationalism and unilateralism grow. He highlighted how regional disruptions, particularly in Africa, now have undeniable global implications. He underscored the continent's complex duality—persistent conflict affecting nearly 500 million people, alongside the growing momentum of African agency. Dr. Mudavadi called for Africa's full representation in global institutions, especially the UN Security Council, where it remains the only region without a permanent seat. Citing Africa's young and growing population, he stated: 'Make space—the future is African.' On the sidelines of the Talks, Dr. Mudavadi met with Finland's Foreign Minister Elina Valtonen to review bilateral progress, building on the May 2025 State Visit of President Stubb to Kenya. The two countries reaffirmed cooperation in peace mediation, education, climate action, and trade. Kenya acknowledged Finland's developmental support—particularly through Finn fund—in areas such as health, renewable energy, and digital infrastructure. Dr. Mudavadi called for deeper collaboration in conflict resolution, including support for Kenya's initiative to develop a treaty on international mediation. Kenya also sought Finland's endorsement of Nairobi as the host of the Global Plastics Treaty Secretariat, strengthening global environmental governance. As global uncertainties mount, the Kenya-Finland partnership demonstrates the value of principled diplomacy and inclusive dialogue. Kenya's voice at Kultaranta signalled Africa's growing influence in shaping a more just, peaceful, and cooperative global order. Distributed by APO Group on behalf of Ministry of Foreign and Diaspora Affairs, Republic of Kenya.
Zawya
14-06-2025
- Politics
- Zawya
Foreign Minister Valtonen to meet ministers from Kenya, Benin, Costa Rica and Thailand
Finnish Minister for Foreign Affairs Elina Valtonen will meet Prime Cabinet Secretary of Kenya Musalia Mudavadi, Minister of Foreign Affairs of Benin Olushegun Adjadi Bakari, Minister of Foreign Affairs of Costa Rica Arnoldo André Tinoco and Vice Minister for Foreign Affairs of Thailand Russ Jalichandra in connection with the Kultaranta Talks on 16–17 June. At the Kultaranta presidential summer residence, the ministers, together with Foreign Minister Valtonen, will engage in a panel discussion entitled ' Accumulation of Shocks at the Global Level – What the West Should Understand ' on 16 June. They will discuss regional and international developments that challenge the rules-based international order. 'With many transformations taking place in the world, I am pleased that we will have views from different continents at Kultaranta. We have several shared interests despite the long distances between us,' says Foreign Minister Elina Valtonen. In their bilateral meetings, the ministers will discuss, among other topics, bilateral relations, topical regional and multilateral issues and economic and trade cooperation. The Finnish Broadcasting Company (YLE) will broadcast the Kultaranta Talks live on Yle TV1 and Yle Areena. More information about the Kultaranta Talks: Press release by the Office of the President of the Republic of Finland Distributed by APO Group on behalf of Ministry of Foreign Affairs of Finland. Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an 'as is' and 'as available' basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release. The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk. To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
Yahoo
13-06-2025
- Business
- Yahoo
4th China-Africa Expo Kicks Off in Hunan, Drawing Global Participation
CHANGSHA, China, June 13, 2025 /PRNewswire/ -- A news report by The 4th China-Africa Economic and Trade Expo opened on Wednesday (June 12) in Changsha, the capital city of Central China's Hunan Province. Ugandan Prime Minister Robinah Nabbanja, Liberian Vice President Jeremiah Kpan Koung, and Kenyan Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi also attended the opening ceremony. Under the theme "China and Africa: Together Toward Modernization," the four-day event is the largest in the expo's history. It has drawn participants from 53 African nations, 11 international organizations, 27 Chinese provinces and municipalities, and over 4,700 Chinese and African enterprises, business associations, and financial institutions. Total registered attendance exceeds 30,000. This year's expo features a 100,000-square-meter exhibition area. It includes country pavilions from 26 African nations and promotion booths from 23 Chinese provinces and cities. The main venue is organized into six specialized pavilions and a central area, covering sectors like smart mining, clean energy, and modern agriculture. New highlights debut this year, including dedicated exhibitions for "African Quality Products" and the China-Africa Fashion Industry. These showcase premium African agricultural goods, food products, handicrafts, and Chinese electromechanical equipment. Satellite events include a pavilion at the permanent exhibition hall of the Gaoqiao Wholesale Market and an engineering machinery remanufacturing exhibition at the Central China International Machinery Park in Xiangtan. Running alongside the expo are 30 economic and trade events focused on implementing the China-Africa "10 partnership action plans" . These cover key cooperation areas such as: industrial chain collaboration, green mining, infrastructure development, traditional medicine, cultural trade, and youth innovation and entrepreneurship. The expo has already yielded significant results, with the signing of 175 cooperation projects related to the 10 partnership action plans. The total value of these projects amounts to $11.39 billion USD. View original content: SOURCE
