Author: Martin Mwita

The credit seeks to restore external sustainability, and strengthen debt management while creating fiscal space for accelerated and inclusive growth. The staff-level agreement is subject to IMF management approval and consideration by the Executive Board. Burundi’s reform program aims to support economic recovery from shocks. The International Monetary Fund (IMF) has agreed to dispatch a $261.7 million loan to crisis-saddled Burundi, its first in nearly a decade, as the country moves to bolster economic recovery and reforms. The IMF boost to the poverty-stricken nation follows “a staff-level agreement on economic policies and reforms” that was struck for a new 40-month…

The World Bank projects Sub-Saharan Africa’s economic growth will dip to 3.1 per cent in 2023. Weakening growth is attributable to multiple crises including debt burden, high inflation, and slowing global economic activity this year. Policymakers across Sub Sahara Africa, however, remain hopeful of navigating the impact of global economic disruptions key among them the Russia-Ukraine war that has constrained food imports A huge debt portfolio, high inflation and slowing economic activity across the globe are set to see Sub-Saharan Africa’s economic growth dip further to 3.1 per cent this year from 3.6 per cent posted in 2022. The projection…

Governor Patrick Njoroge has written to Janet Yellen seeking audience with her during this year’s Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF). The meetings are set to take place in Washington DC from  April 10 –16. In January, the World Bank revised downwards Kenya’s growth projection for 2023 to five per cent from 5.2 per cent. The Central Bank of Kenya (CBK) governor is keen to meet the US Secretary of the Treasury, as the East African country navigates through tough economic times occasioned by both global and domestic factors. Governor Patrick Njoroge…

Major African airlines have been hard hit since the Covid-19 pandemic struck. This year is however expected to bring good tidings for the industry, albeit low profit margins. IATA expects a return to profitability for the global airline industry in 2023, as airlines continue to cut losses stemming from the effects of the pandemic to their business in 2022.  The global aviation industry is set for a bounce back this year as airlines navigate turbulence that has shaken the industry since 2020, threatening to bring down carriers in the market. Major African airlines have been hard hit since the Covid-19…

The Monetary Policy Committee (MPC) on Wednesday noted the sustained inflationary pressures, the elevated global risks and their potential impact on the domestic economy. CBK sees a scope for a further tightening of the monetary policy in order to anchor inflation expectations. Overall inflation in Kenya increased to 9.2 percent in February 2023 from 9.0 percent in January, mainly driven by higher food prices. The Central Bank of Kenya (CBK) has revised upwards the benchmark rate by 75.0 basis points to 9.50 per cent, in its latest move to try and tame the rising inflation in the country. This is…

Index shows that 90% of Kenya’s consumers who receive money transfers want integrated mobile ‘super apps’ so they can manage remittances with other financial needs. Kenya’s receivers want choice in digital and in-person remittance platforms as they look to the future. Kenya is a leader when it comes to financial innovation especially in the world of mobile money. Kenya’s consumers are calling for greater innovation in international money transfer services so they can easily manage their personal finance needs. According to Western Union’s inaugural Global Money Transfer Index, about 90 per cent of Kenya’s receivers want providers to offer remittance services in…

Total operating costs during the year under review increased to USD930.1 million (Ksh122.4 billion) from USD585.3 million (Ksh77.02 billion). This ate into gains made in revenue as total income grew to USD887.5 million (Ksh116.8 billion), from USD533.4 million (Ksh70.2 billion). African carriers are expected to post a loss of USD638 million in 2022, narrowing to a loss of USD213 million in 2023, according to IATA. Kenya’s flag carrier-Kenya Airways has posted the worst loss ever as high operating costs wiped out gains made in revenues last year, as the aviation industry slowly picked from the impact of the Covid-19 pandemic. The…

Rwanda and Kenya who have already started trading through the agreement. Mid-February, Tanzania also said it was ready to trade under the agreement. The implementation of AfCFTA is projected to increase intra-African trade significantly, especially in manufacturing. Uganda has expressed readiness to join Kenya, Tanzania and Rwanda in trading under the African Continental Free Trade Area (AfCFTA) as the continent slowly embraces the pact. The implementation of AfCFTA is projected to increase intra-African trade significantly, especially in manufacturing. The share of intra-Africa exports to total global exports is expected to increase in Tanzania by 28 per cent, Uganda by 29…

Africa is at the center of global sustainability transitions such as decarbonization of production systems. The continent is also seeing electrification of transportation infrastructure and accelerated use of renewable energy. African Continent Free Trade Area (AfCFTA) is an opportunity to bridge the inequality and vulnerability gap while fostering recovery and transformation in Africa. Africa – pummeled by a combination of crises – should swiftly invest in and implement people-centered strategies to mobilize financial resources and accelerate continental economic recovery, the Economic Commission for Africa now says. Speaking during the opening of the ministerial segment of the 55th Session of ECA’s…

Effective March 1 2023, Lufthansa Group appointed Kevin Markette as the new General Manager for the East African region. This encompasses Kenya, Ethiopia, Uganda, Rwanda, Burundi and Tanzania. Effective June 3, 2023, Lufthansa will expand its current connection from Frankfurt, Germany into Nairobi for the summer flight schedule from five to seven weekly flights. The Lufthansa Group has re-affirmed its commitment to East Africa by relocating the commercial responsibility for the passenger business back to Kenya. Effective March 1 2023, Lufthansa Group appointed Kevin Markette as the new General Manager for the East African region. This encompasses Kenya, Ethiopia, Uganda,…