• The Central Bank of Kenya says tea exports posted a 13 percent year-on-year increase.
• As for the direction of trade, imports from China accounted for 21 percent of Kenya’s total imports.
• Goods exported to Africa in the fourth quarter of 2022 amounted to USD 729 million or 41 percent of the total exports.

Kenya’s current account balance has narrowed to $966 million due to the increase in remittances sent by Kenyans living abroad and a renewed demand for tea from traditional markets the Country’s Central Bank has said.

This figure represents a decline from the previous quarter’s balance of $1,557 million that was reported at the end of 2021.

The current account balance is a crucial component of the country’s overall financial inflow and outflow record, forming part of the balance of payments, which reflects all transactions made by Kenya with its trading partners.

Growth in exports of key goods

• South Africa has just 18 months to show that it has an effective anti-money laundering (AML) policy.
• The government estimates that between $2 billion and $8.3 billion is laundered annually through local financial institutions.
• Banks in South Africa must find a new way to prove identity to prevent money laundering and cyberattacks.

South Africa has just 18 months to show that it has an effective anti-money laundering (AML) policy, an undertaking that banks can help to rescue the country from the grey list. In January 2025, the global anti-money laundering watchdog, the Financial Action Task Force will review its decision to greylist South Africa. The agency will interrogate the public and private sector measures taken by the country to address its concerns.

The nation will have to present a workable, scalable plan to stop fraud, money laundering, and other financial crimes. Failure to do so will have severe negative economic …

Djibouti is set to receive a $120 million loan from the African Export-Import Bank (Afreximbank) in a deal targeting projects that will accelerate the country’s economic growth. 

The financing, which will go to Djibouti’s Great Horn Investment Holding (GHIH) to execute projects in the country’s Damerjog Industrial Development Free Trade Zone,  is part of a total facility amount of $155 million. The remaining $35 million will be financed through Banque pour le Commerce et l’Industrie Mer Rouge of Djibouti. …

• To facilitate the execution of these projects, Afreximbank will collaborate with Arise IIP.
• In May, the lender rolled out a $3 billion program aimed at spurring Kenya’s economic growth.
• The plan will also include the establishment of the $600 million e-mobility manufacturing plant in Kenya.

African Export–Import Bank, popularly referred to as Afreximbank, has entered into an agreement with Kenya that will see the lender identify key economic projects that it will finance and manage.

Under the deal signed on May 2, 2023, Afreximbank, through its subsidiary, will conduct a comprehensive feasibility study on these proposed projects. It will them provide the necessary financing for their implementation.

One of the major focus of Afreximbank in Kenya is to provide funding for various special economic zones spread across different counties. The initiative is part of the broader industrial parks development and investment plan for Special Economic Zones (SEZs) in Africa.

“On …

• Kenya is among countries that are heavily indebted with the loan stock at staggering 67.3 per cent of GDP.
• Total debt stood at $67.7 billion (Ksh9.6 trillion) as of April, Central Bank of Kenya data shows.
• This comprised $35.9 billion external debt and $24.6 billion borrowed from the domestic market.

President William Ruto is calling for “urgent” redesigning of global financial institutions to ensure fairness in financing of economies, as he continues to lash out at the West over debt traps in poor states.

In what seems to be a swing at the International Monetary Fund and the World Bank, Dr Ruto is pointing to a post-colonial Africa where development has stalled due to limited resources to liberate economies.

Lenders placing debt traps in poor States

This is from what Dr Ruto terms institutions that were extractive by design; only placing debt traps in poor states. Over the years, Kenya’s …

• The $100 million loan has been disbursed for onward lending.
• Coop Bank CEO says the funding “is most timely in view of the great need to better support our business customers.”
• The long-term tenure of the facility has significantly boosted Coop Bank’s ability to offer credit to SMEs.

The Co-operative Bank of Kenya has received a long-term seven-year funding amounting to $100 million from a consortium of financial institutions to empower Kenyan SMEs.

SMEs are a major source of employment in Kenya, providing jobs to a large number of people, especially in rural areas. They absorb a significant percentage of the labor force, thereby reducing the burden on the formal job market.

With a strong focus on climate and impact, the consortium lead DEG offers financing, advice and support to private sector enterprises operating in developing and emerging-market countries.

Loan to empower Kenyan SMEs

The loan is a Tier II …