NSE, shilling unfazed by Rotich grilling over dams scam

The capital markets yesterday shrugged off mounting concerns over the fate of Treasury Cabinet Secretary Henry Rotich on a day he was extensively grilled over the dams cash scandal.

The CS spent the better part of yesterday at the Directorate of Criminal Investigations (DCI) offices on Kiambu Road to shed light on the Sh21 billion scam that has rocked the Cabinet. It was widely expected that the uncertainty surrounding his tenure in light of the latest corruption scandal to rock the Jubilee government would cause jitters in the market as well as the performance of the shilling.

But in yesterday’s trading, investors gained Sh181 million in paper wealth as capitalisation moved up cautiously to Sh2.301 trillion, riding on banking shares which moved 54.9 per cent of the day’s traded value as focus shifted to the announcement of full-year results.

The shilling also remained stable, with commercial banks quoting the local currency at 100 per dollar, the same as Monday’s close.

“The Kenyan shilling held steady against the dollar on Tuesday and was forecast to strengthen due to inflows from horticulture exports and remittances,” reported Reuters.

CS Rotich was summoned by the DCI for questioning over advance payments made to firms for the multi-billion-shilling Arror and Kimwarer dam contracts.

The summons come at a time when CS Rotich should be more worried about the country’s spiralling debt as the country faces over Sh200 billion maturing foreign currency loans.

Treasury is organising a Sh250 billion Eurobond or a mix of syndicated loans to settle the payments which include commercial loans to Britain’s Standard Chartered Bank amounting to $766 million (Sh76.6 billion) this month as well and a $750 million (Sh75 billion) five-year Eurobond due by June.

Financial Standard
Premium 14 years on, Kenya's oil dream still a mirage amid mounting Tullow woes
Real Estate
Premium Inside Housing Law that will grant Ruto billions for project
Financial Standard
Premium It's high time we went the lottery way in allocating public sector jobs
Financial Standard
Premium Transport tycoon's widow battles lender over Sh174m 'fictitious' loan