Category «Business»

BOU speaks out on Shilling, lending rates

Bank of Uganda says it cannot control the exchange rate changes. This comes at a time when the exchange rate fluctuations have been highlighted as a major factor affecting the performance of the economy with the latest being the Uganda Revenue Authority revenue collections deficit. Similarly the weakening of the shillings experienced in the last two weeks contributed to the hiking of fuel prices The export promotions board has asked the Bank of Uganda to explain how best the shillings could be managed because it also affected exports. However Bank of Uganda says it has no control over the exchange rate because it’s a free market. The Governor Emmanuel Mutebile says the Central Bank can only come in when the …

BOU Closes National Bank of Commerce

Bank of Uganda has announced immediate takeover of the management of the National Bank of Commerce. This has been announced in a press statement issued by Dr. Louis Kasekende, the bank’s Deputy Governor. According to the statement, the bank’s license has been revoked and its customers will now operate their accounts in Crane Bank, beginning October 1st. Kasekende says the bank has also been ordered to wind up its affairs. The Central Bank in its statement warns borrowers with the bank to service their loans as per the previous terms. Though the statement does not give reason for the wind up, Kasekende says the Central Bank will remain committed to ensure the stability of the financial sector. The bank has …

Entebbe Airport moves to reduce costs

The Civil Aviation Authority has revealed plans to set up a ferry port at the shores of Lake Victoria, to transport aviation fuel in a bid to reduce the costs incurred by airlines. Currently, there is an outcry over the high cost of landing and parking at Entebbe Airport, which players say is hurting the airline business. The charges are the highest in East Africa, making Entebbe Airport one of the most expensive for business. Currently, the small aircrafts are charged $110 and big ones $320 at Entebbe Airport for every extra hour after parking for six hours compared to $10 for the small ones and $130 charged at Jomo Kenyatta International Airport in Kenya. Speaking to KFM, the CAA …