Author: Martin Mwita

Martin Mwita is a business reporter based in Kenya. He covers equities, capital markets, trade and the East African Cooperation markets.

Kenya's business conditions
  • Kenya’s private sector activity and new orders rises for the first time in six months.
  • Selling price inflation hits long-run average as cost burdens ease.
  • However, PMI shows lowest confidence towards future output in the survey’s history.

Kenya’s business conditions improved in February, expanding private sector activity due to a further softening of inflationary pressures supported a fresh increase in new order volumes.

Stanbic Bank Kenya Purchasing Managers Index (PMI) for February registered at 51.3 per cent as lower fuel prices helped to cool input cost inflation to a 26-month low, supporting the softest increase in output prices for one-and-a-half years.

Improving business conditions are said to have led Kenyan companies to expand staffing levels at a faster rate albeit by largely hiring casuals pointing to a cautionary stance towards hiring permanently.

Nevertheless, confidence regarding future activity fell to a survey low, suggesting a broad degree of uncertainty that activity …

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East African Cables
  • East African Cables is a private limited liability company incorporated in mainland Tanzania. It manufactures extensive cables for domestic and industrial lighting and power electricity transmission.
  • The sale is subject to regulatory and shareholders’ approval.
  • Upon completion of the sale, EAC Tanzania will cease being a subsidiary of the company.

Msufini Tanzania Limited (MTL), a chlorine and sodium hydroxide manufacturer, is set to buy a majority stake in East African Cables’s Tanzanian subsidiary if regulators and stakeholders approve an agreed deal between the two firms.

East African Cables, which is listed on the Nairobi Securities Exchange, has entered into a share purchase agreement with Msufini for the sale of 16 218,000 ordinary shares at a value of Tsh10, constituting 51 per cent of the issued share capital of East African Cables (Tanzania) Limited.

East African Cables is a private limited liability company incorporated in mainland Tanzania. It manufactures extensive …

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Eastern Africa Power Pool
  • The Eastern Africa Power Pool has made major inroads in increasing cross-border electrification.
  • The system has the potential to connect 600 million people to clean energy.
  • EAPP member countries are Burundi, Democratic Republic of Congo, Djibouti, Egypt, Ethiopia, Kenya, Libya, Rwanda, Somalia, South Sudan, Sudan, Tanzania, and Uganda.

The Eastern Africa Power Pool (EAPP) is targeting to go live on power auctioning (trading) by December this year, the secretariat now indicates, in what will allow the 13-member countries to sale excess electricity across borders.

This comes as countries continue to build a strong power connection network, amid huge investments in renewable energy mainly solar, wind, hydro and geothermal.

The EAPP member countries are Burundi, DRC, Djibouti, Egypt, Ethiopia, Kenya, Libya, Rwanda, Somalia, South Sudan, Sudan, Tanzania, and Uganda.

Council of Ministers and the EAPP Steering Committee met in Nairobi this week to deliberate on the future of the power pool …

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Mining of precious metals
  • Since 2014, AFC has invested over $1 billion in Africa’s mining of precious metals and critical minerals across several countries.
  • The latest partnerships will further strengthen the sector by driving significant capital flow into the continent. 
  • According to the United Nations Conference on Trade and Development (UNCTAD), two-thirds of developing countries depend on commodities.

Boosting the mining of precious metals in Africa

Africa’s mining sector is poised for significant developments as the Africa Finance Corporation (AFC) throws its weight behind the industry, a key driver of economicjordan air force 1 castelli gabba yeezy shoes under 1000 jordan proto max 720 yeezy boost 350 v2 hyperspace durex intense vibrations ring air jordan 1 element brock purdy jersey dallas cowboys slippers mens custom kings jersey custom dallas stars jersey air jordan 1 element uberlube luxury lubricant air jordan 1 low flyease custom dallas stars jersey growth in commodity-dependent countries.

AFC, the …

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AfDB | fastest growing economies 2024
  • According to the African Development Bank’s Macroeconomic report, Africa will dominate the world’s 20 fastest growing economies 2024.
  • According to the report, the medium-term growth outlook for the continent’s five regions is slowly improving.
  • The report forecasts more substantial growth for Africa in 2024, outpacing the projected global average; the continent is the second-fastest-growing region after Asia.

Fastest Growing Economies 2024

The African Development Bank Group’s latest Macroeconomic Performance and Outlook (MEO) indicates real Gross Domestic Product (GDP) growth for the continecustom nfl football jerseys decathlon bmx luvme human hair wigs bouncing putty egg custom kings jersey dallas cowboys slippers mens johnny manziel jersey custom kings jersey custom youth hockey jerseys brock bowers jersey luvme human hair wigs black friday wig sale college football jerseys decathlon bmx uberlube luxury lubricant nt is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025, respectively.

The report …

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Diaspora remittances to Kenya
  • Official data shows that diaspora remittances to Kenya increased to $412.4 million in January 2024, compared to $372.6 million in December 2023.
  • This represents an 18% jump compared to similar month in 2022 as well as 10.7% month-on-month increase in inflows.
  • The cumulative inflows for the 12 months to January 2024 totalled $4.3 billion compared to $4 billion in the same period in 2023, an increase of 5.3 per cent.

Kenyans in the diaspora sent home more money in January compared to December, as the strong start of the year signals easing inflationary pressures, mainly in key sourcejock strap brock bowers jersey jordan max aura 4 nike air jordan 1 elevate low oregon football jerseys black friday wig sale best human hair wigs for black females latex hood custom stitched nfl jersey sit top kayak nike air max 90 futura jock strap jock strap air max 270 women alpinestars

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Kenyan Shilling
  • The Kenyan shilling has made a strong turnaround against the US dollar this week,
  • Last Tuesday, Kenya successfully raised $1.5 billion from its Eurobonds buyback offer initiated on February 7, reducing the chance of defaulting payment on its $2-billion-dollar debt due in June.
  • East Africa’s most robust economy plans to use the funds to repay its debut Eurobond issued in 2014.

The Kenyan shilling has made a strong turnaround against the Ubest human hair wigs for black females jordan air force 1 latex hood sac eastpak nike air jordan 1 elevate low smith and soul johnny manziel jersey jordan max aura 4 dallas cowboys slippers mens johnny manziel jersey bouncing putty egg adidas yeezy boost 350 turtle dove luvme human hair wigs jordan proto max 720 uberlube luxury lubricant S dollar this week, moving towards the most potent levels since March last year, mainly on investor confidence and increased …

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Kenyan shilling on an upward trajectory boosting investor confidence
  • The latest Nairobi Securities Exchange monthly Barometer shows month-on-month growth comparing January this year and December last year, with prospects looking much better after a bear run last year.
  • Market capitalisation increased by 0.08 per cent in January to $9.11 billion from $9.05 billion in December 2023.
  • The NSE 20 and NSE 25 Share Index recorded increases in activity of 0.89 per cent and 1.32 per cent, respectively, while the All-Share Index experienced a 0.08 per cent increase.

Nairobi Securities Exchange showing recovery signs

Kenya’s capital market is showing a sign of recovery this year, with the Nairobi Securities Exchange (NSE) recording a gain in January, albeit minimal, as large stocks pay investors.

This is despite interest rates in advanced economies remaining high into 2024, a trend that has seen foreign investors focus on home markets, mainly the United States.

The latest NSE monthly Barometer shows month-on-month growth comparing January …

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Nigeria's economy
  • Like many other countries, the IMF has noted that Nigeria’s economy faces a complex external environment and wide-ranging domestic challenges.
  • External financing (market and official) is scarce, and global food prices have surged, reflecting the repercussions of conflict and geo-economic fragmentation.
  • Per-capita growth in Nigeria has stalled, and poverty and food insecurity are high, exacerbating the cost-of-living crisis, according to the global lender.

Nigeria’s economy is not yet out of the woods, the International Monetary Fund (IMF) has indicated, with a potential economic crisis despite government interventions to improve the economy.

This is even as the country’s real GDP is projected to grow by three per cent this year compared to last year’s projection of 2.9 per cent.

Like many other countries, the IMF has noted that Nigeria faces a complex external environment and wide-ranging domestic challenges.

External financing (market and official) is scarce, and global food prices have surged, …

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the cost of borrowing in Kenya
  • The cost of borrowing in Kenya has been going up since October last year, when it was at 10.50 per cent, before two consecutive raises.
  • This means banks are likely to adjust their interest rates upwards, pushing the cost of borrowing beyond the reach of many.
  • The majority of bank rates are currently above 20 per cent, amid a high default rate as banks struggle with Non-Performing Loans (NPLs).

Higher interest rates to raise the cost of borrowing in Kenya

The cost of borrowing in Kenya is set for yet another rise if banks are to factor in the latest Central Bank of Kenya increase in the base-lending rate.

The Central Bank of Kenya (CBK) has raised borrowing costs to highs last seen nearly 12 years ago, as it moves to try and contain the country’s inflation, which has started to pick.

On Tuesday, the Monetary Policy Committee, CBK’s top …

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