France approves Sh28bn for Kenya's infrastructure

Kenya has signed seven memorandums of understanding that will see the country receive up to 250 million euros (Sh28.8 billion).The agreements were signed after President Uhuru Kenyatta met his French counterpart Francois Hollande for bilateral agreements.The financing includes grants and loans negotiated through the national Treasury to finance several infrastructure projects in the country.This is the first time the presidents of the two countries are meeting in fourteen years.Cabinet secretaries Amina Mohamed, Henry Rotich, Najib Balala and Eugene Wamalwa have accompanied President Kenyatta on the state visit.

A bulk of the money Sh13.8 billion (120 million euros) will be used to finance the Last Mile Connectivity Programme.Of this, 90 million euros is being given to the country as a Concessional Loan, with the remaining 30 million euros as a grant.

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Kenya would be among cheapest world oil producers, Tullow says

NAIROBI: Kenya would be among the 10 cheapest countries to produce crude oil, ahead of major exporters like Nigeria and Angola. Tullow Oil, the UK firm prospecting for oil in Turkana among other areas, has reported the break-even point for Kenya crude is Sh2,550 ($25) per barrel – including the pipeline tariff to the sea port. Low production costs translate to higher profits for a producer. Kenya's projected cost is lower than $35.40 (Sh3,600) in Angola and Nigeria's $31.50 (Sh3,204), both countries bleeding money as global prices slumped to near-record low of $29 (Sh2,949) this week. At the prevailing prices, Kenya would still be making a profit if it were already producing and selling crude oil in the international markets.This is important news that suggests Kenya's oil is viable even at current low global prices albeit at a razor thin profit margin, said Eric Musau, a research analyst at Standard Investment Bank. He was quoting a presentation made by Tullow Oil after releasing its 2015 operating results. Being a low-cost crude oil producer could mean that Kenya can survive the sustained slump in prices, and still make a profit at the current levels.

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Tanzania to connect electricity to Kenya and Zambia

Tanzania is set to finish two major projects that will connect electricity to Kenya and Zambia by 2019, this is according to the ministry of Energy and Minerals.

The Deputy Permanent Secretary in the Ministry of Energy and Minerals, Dr. Juliana Pallangyo confirmed the news during a Southern Africa Power Pool (SAPP) executive committee meeting and said that Tanzania was missing a chance to trade power with otherSouthern Africa Development Community (SADC) member countries due to not being interconnected.

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