Author: Wanjiku Njugunah

The coronavirus pandemic continues to have devastating effects on key markets in the Kenyan economy, among them paints and coatings.

This is according to Crown Paints Group Chief Executive Officer Dr. Rakesh Rao who has attributed the high cost of raw material in the paint industry to continued impact of virus.

The CEO said the situation remains worrying, particularly, on how it has impacted on the cost of raw materials, both on price of materials and loss of time due to worldwide logistical inefficiencies.

Dr. Rao said raw materials costs had increased by between 40-60 percent and warned that should the situation continue, the construction sector’s overall performance would be negatively affected.

“We remain cautious due to the continued lockdowns in the country. For instance, partial lockdown in Kisumu County, one of our strongest markets, has adversely affected our sales”, Dr. Rao explained.

To deal with the changed brought forth …

A new report now indicates that women entrepreneurs and in the Middle East and Africa (MEA) are leading the way in tapping into the power of the digital economy to succeed and grow.

According to the inaugural Mastercard MEA SME Confidence Index, women-owned small and medium enterprises (SMEs) believe there are huge benefits of a cash-free economy to their businesses.

As such, 81 percent of the region’s women entrepreneurs have a digital presence for their businesses, compared to 68 percent of their male counterparts.

In terms of a digital footprint of the region’s women entrepreneurs, social media (71 percent) leads the way, followed by a company website (57 percent).

In the Middle East and North Africa, more women entrepreneurs had a website (71 percent) than a social media presence (55 percent).

It also found that over 80 percent of women entrepreneurs have digital readiness for their business compared to their …

The increasing emergence of modern logistic parks in Kenya has been mainly attributed to favorable tax laws, increased e-commerce, intra-regional trade, and growth across various sectors, including manufacturing, retail, and health.

This is according to a new report by Knight Frank which indicates that a couple of logistic projects commenced during the first half of the year.

For example in February, a beverage manufacturer and distributor Kenya Wine Agencies Limited (KWAL) broke ground on its Sh4 billion manufacturing plant located in Tatu Industrial Park in Ruiru.

In June Packaging products manufacturer Super Plastics announced plans to open a manufacturing facility in Tatu Industrial Park.

Africa Logistics Properties (ALP) broke ground in June on phases two, three, and four of its 1,076,390 sq. ft modern warehousing complex located in Tilisi Logistics Park in Limuru.

The Sh1 billion project is expected to be completed in the second half of 2022, Phase one …

Kenya’s Absa Bank has launched a new solution that allows its customers to access their bank accounts and transact via WhatsApp, as part of their committed to invest at least Sh1.6 billion this year towards digitization, automation and innovation.

The bank says the solution, a first in the market, will allow Absa customers to conduct some of the most popular digital transactions in the market.

These include account-to-Mpesa/Airtel Money transfers, inter-account transfers, bill payments, balance enquiry, among others, on WhatsApp.

Absa Bank Kenya Managing Director Jeremy Awori said that the move is a demonstration of the bank’s commitment to continue investing in digitally led innovative solutions that have the potential to significantly transform customer experience.

“This is a really exciting moment for us at Absa not just because this solution is first-in-market, but more so because it will significantly transform the way our customers interact with us. Essentially, we are …

A new report by Knight Frank shows that whilst still declining, prime residential rents declined at a slower rate of 6.02 percent over the past 12 months to June, compared to a 7.62 percent decline in a comparable period in 2020.

The company’s First Half 2021 Kenya Market Update says the change was mainly attributed to the reopening of the economy, roll out of vaccinations and landlords adjusting rental terms to accept lower rental prices.

The report adds that the continued oversupply of residential developments in certain locations such as Kilimani coupled with the current economic state still makes the prime residential rents sector a buyers’ and tenants’ market.

Prime residential sale prices in Nairobi marginally improved by 0.1 percent over the past 12 months to June 2021, compared to a 5.1 percent decline in a comparable period in 2020 providing signs the market is stabilizing.

This is mainly attributed …

Kenya’s economic activity increased marginally in July from the previous month, a new survey has revealed.

The survey also found that domestic demand improved by the second slowest pace since the lifting of public health restrictions after the first wave of pandemic, with some firms reporting a drop in customer numbers.

The survey was commissioned by and compiled by IHS Markit from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies in the country.

It also reveals that growth momentum in the private sector slowed again at the start of the third quarter of the year, as surveyed businesses reported weaker expansions in output, new orders, employment and purchasing.

At the same time, cost inflationary pressures rose to a 16-month high as tax changes resulted in a sharp uptick in purchase prices.

This led to a decline of the headline Purchasing Manager’ Index …

Private sector players in the region have expressed optimism in making steps towards the recovery of Covid-19.

This follows a commitment by the East African Community Secretariat to prioritize strengthening public-private sector partnerships between the private sector in the region and the EAC Partner States governments, to jointly invest in vaccine manufacturing in the region.

The EAC Secretary-General, Dr Peter Mathuki said that there was a need for a coordinated approach in handling COVID-19 in the region and emphasized the need for local production of vaccines.

“EAC is working on strengthening partnerships between the private sector and EAC Partner States’ governments, to jointly establish an investment in vaccine manufacturing, to ensure the region can produce and avail vaccines to East Africans. Truck drivers transporting goods across the region should also be included among the priority groups who need to be vaccinated,” Dr Mathuki said.

Mathuki also noted that the EAC …

Kenya received a further 180,000 doses of AstraZeneca vaccine on Friday, even as the number of those who have been vaccinated surpass 1.7 million.

In a statement, the Ministry of Health says the addition will serve as a boost to the ongoing vaccination efforts amid increased Covid-19 cases across the country.

So far, a total of 209, 823 cases have been reported Kenya.

The latest consignment, which was a donation from the Greek government, pushes the number of vaccines received in the country to 2,323,100.

Speaking at JKIA after receiving the consignment, National Taskforce on Vaccine Deployment Chair Dr. Willis Akhwale said the donation was a welcome boost to the ongoing vaccination exercise.

Akhwale said the government expects to have vaccinated 10 million people by the end of this year.

At the same time, Deputy Head of mission at the Embassy of Greece in Kenya Counsellor Sotirios Demestichas, said the …

Kenyan-based low-cost carrier Jambojet has announced plans to begin operations to North Kivu Capital, Goma in the Eastern Democratic Republic of the Congo, as well as to the Kenyan coastal island of Lamu.

In a statement, the carrier says the move is part of its expansion program, at a time when the coronavirus pandemic continues to have a devastating impact on the aviation sector in the region as well as across the world.

The company said its inaugural flight to Goma will be on 10th September 2021, starting with 2 frequencies weekly, with flights expected to grow to 4 frequencies weekly, flying on Monday, Wednesday, Friday, and Sunday.

The airline announced that it will be flying to Lamu 4 times weekly, starting 15th September 2021.

Commenting on the announcement, Jambojet Board of Directors Chairman Vincent Rague said the expansion plan has been in motion for 3 years.

“Three years ago, …

Partner states of the East African region have been urged to fast-track the finalization and implementation of EAC regulations on liberalization of air transport services.

This is amid a finding which reveals that the high cost of air transport in the region is attributed by slow pace of liberalization.

According to the East African Business Council (EABC), liberalization of air transport services will lower flight costs and in turn reduce the cost of doing business in the region.

A finding by the latest policy paper by EABC dubbed, ‘Costs and Benefits of ‘Open Skies’ in the East African Community’, says that air-transport liberalization is set to lower flight costs by 9 percent and see a 41 percent increase in flight frequencies.

According to the paper, despite the commitments of the EAC Partner States at the international level, the domestic air transport sector remains protected, reducing accessibility and increasing air transport …