Author: Jack Oduor

• Fixed-income securities are a broad class of very liquid and highly traded debt instruments.
• Data shows that the average turnover of Kenya’s bond market is over $4.55 billion, and NSE and EABX are now vying for this market share. 
• The choice to merge OTC and onscreen trading will allow market players a flexible way to execute trades on the bond market.

The Nairobi Securities Exchange will soon offer a secondary bond market that combines both onscreen and Over-the-Counter (OTC) trading of fixed-income securities following regulators’ approval. Capital Markets Authority approved amendments to NSE Fixed Income Trading Rules.

In the amendments, Kenya’s capital markets regulator licensed the East African Bond Exchange (EABX) to operate an over-the-counter (OTC) trading platform, likely to drive up competition in the bonds market. An OTC market is a platform that facilitates transactions between traders without requiring them to go through an official securities exchange.

NSE Chief …

• Scams to watch for this year will include Investment scams that can appear as trustworthy financial organisations promising incredible returns. 
• Scammers build trust with their victims by using fake profiles on dating sites or social media.
• Posing as IT technicians, these scammers try to convince you that there’s something wrong with your computer and offer to fix it.

Watch out! In 2024, scammers have some new tricks, such as deepfake impersonation. Fostering a zero-trust mindset can help keep you safe from these scams. Cyber security platform  KnowBe4 Africa Senior Vice President Anna Collard highlights key scams for this year.

Deepfake impersonation scams

Imagine receiving a voice note from your CEO instructing you to transfer money to a bank account. You follow the instructions without realising that the voice note is a deepfake. And just like that, you have fallen for a scam.

Deepfakes make use of AI technologies to create

• The rising fed rates have led to expensive loans as Kenya struggles to curb inflation
• Although global inflation has generally eased, rapid monetary policy tightening in advanced economies has sharply tightened global financial conditions.
• According to the CBK governor, Kenya should brace for a challenging 2024, including tightening global conditions that will cascade to local levels

Kenya is still at risk of bearing the impacts of new global threats like rising fed rates that may emerge in 2024, financial industry sector players have revealed.

In the past year, the country has confronted challenges ranging from the war in Ukraine, the prolonged drought that affected the country, rising federal rates, and high global inflation.

The rising fed rates led to expensive loans as the country struggled to curb inflation, which currently stands at 6.9 per cent.

Financial experts from Standard Chartered project that the rising fed rates will ease from mid …

• Somalia, South Sudan and Equatorial Guinea have emerged as the most corrupt countries in Africa in the 2023 Corruption Perception Index (CPI) by Transparency International.
• Liberia (25) has declined 16 points in the CPI score since 2016 while Mali (28) has dropped seven points in the CPI ranking since 2015.
• In 2023, Gabon ranked (28) having lost a similar number of points like troubled Mali since 2016.

Somalia, South Sudan and Equatorial Guinea have emerged as the most corrupt countries in Africa in the 2023 Corruption Perception Index (CPI) by Transparency International (TI). Equatorial Guinea (17), South Sudan (13) and Somalia (11) scored the lowest with TI saying these economies showed “no sign of improvement.”

Liberia (25) has declined 16 points in the CPI score since 2016 while Mali (28) has dropped seven points in the CPI ranking since 2015. In 2023, Gabon ranked (28) having lost a similar number …

• Next month, the 2nd Canada-Africa Business Conference in Nairobi signifies an opportunity for stakeholders to explore avenues for investment.
• Canada has been one of Kenya’s big trade partners with Kenyan exports to Canada estimated at US$18.71 million in 2022.
• The Canada-Africa Business Conference is a testament to the growing economic ties between the two regions.

Nairobi will host the second Canada-Africa Business Conference slated for February 2024, as the North American country looks to increase its grip on regional investments.

The Canada-Africa Chamber of Business announced that the annual gathering slated for the 19th to 20th of February 2024 in Nairobi, will be inaugurated by Kenyan President William Ruto and will seek to foster bilateral trade relations and investment opportunities between Africa and Canada.

The conference will serve as a platform for government officials, business leaders, and entrepreneurs from both nations to engage in constructive dialogue, explore potential collaborations, and …

• Kenya’s debt distress has escalated, with loan repayments falling due amid a depreciating shilling against the dollar.
• Other impediments include Kenya’s vulnerability to climate shocks such as drought and floods, which may derail growth over the long term.
• On the expenditure side, fiscal consolidation in the past two years has led to a real per capita spending decline.

Experts have warned that Kenya risks missing its economic growth targets in the medium term as it grapples with high debt distress and a deteriorating macroeconomic operating environment.

The country finds itself in a tight spot following years of successive borrowing, coupled with the inability of the private sector to create sufficient jobs for millions of young people entering the job market annually.

The latest finding by an economic think tank, the Institute of Public Finance (IPF), shows that since 2014, persistent high fiscal deficits have resulted in a swift escalation of …

• Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.
• Within the Southern Africa region, higher integration will drive its share of total intra-Africa exports to a third by 2035.
• The MENA Region and the Middle East-East Africa corridors will also be substantial, with combined trade volume expected to reach almost USD200 billion by 2035.

Increased infrastructure interconnectivity by the African states has been identified as the key driver that will lead to success of the African Continental Free Trade Area (AfCFTA). Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.

This comes after members after some member states expressed concern that the African trade system has failed to grow beyond the estimated 14–15 per cent over the last three to four years.

However, prospects are now positive that intra-Africa trade will grow 3.9 per …

• EABL net sales increased by 16 per cent to $408.39 million (KSh66.5 billion) in six months ending December 2023.
• The Group’s bottom line was negatively impacted by high input costs, inflation, Kenyan Shilling’s devaluation and escalating interest rates.
• Directors recommended an interim dividend of $0.01 (KSh1) per share, a reduction from the $0.02 (KSh3.75) paid last year.

A combination of macroeconomic factors, inflation and rising finance costs have seen  EABL profits suffer a 22 per cent decline to $41.5 million (KSh6.8 billion) in half-year ended December 2023 compared to similar period previously.

East African Breweries Ltd says the devaluation of Kenyan Shilling resulted in a forex loss of $14.1 million (KSh2.3 billion), an increase of $12.8 million (Sh2.1 billion) versus the same period last year.

Overall, the Group Managing Director and CEO Jane Karuku attributed the decline in EABL profits to increased input costs, currency devaluation, and rising interest rates.…

• There is a Climate Funding gap of 40 billion dollars in blue carbon, yet no Kenyan firms are undertaking it.
• According to the World Bank, Kenya remains vulnerable to frequent climatic shocks that pose significant economic risks.
• The East African country has been gravely affected by changing weather patterns and a fall in disposable income available for necessities.

Despite their considerable potential, Kenya is foregoing billions of dollars in untapped climate financing opportunities. While many startups are entering this sector, industry experts argue that the current figure remains insufficient to combat climate change adequately.

Pangea Accelerator, an investment platform that provides funding for startups and small and medium enterprises (SMEs), says that the region needs to grow the number of startups, fully focusing on the environment. The Founder of Pangea, Jonas Tesfu, says that as a country, Kenya needs to have a lot of innovative businesses join climate change initiatives …

• The AfDB’s mandate for a three-year social bond was announced on Wednesday, 17th January 2024.
• This issuance is a significant highlight amid a dynamic week in the USD SSA markets, witnessing the launch of eight benchmarks totaling US$17.25 billion within a span of two days.
• This new three-year Social Benchmark is the Bank’s first global benchmark of the year.

The African Development Bank has issued its first ever three-year social bond targeting to raise US$2 billion under its recently established Sustainable Bond Framework, which was launched in September 2023.

Set to mature on February 25, 2027, the Sustainable Bond Program seamlessly integrates and strengthens the African Development Bank’s existing Green and Social Bond initiatives, streamlining the issuance of green bonds, social bonds, and sustainability bonds.

This new three-year Social Benchmark is the Bank’s first global benchmark of the year, strategically aligning with the robust reopening of primary markets in January …