Wednesday, June 19

Industry and Trade

Kenya's Bilateral loans
  • Kenya’s Bilateral Loans data show that the Asian giant is still a major lender to Kenya mainly for the development of roads rails and port infrastructure.
  • The country’s debt as of March 2024 comprised of $80.9 billion (Sh10.4trillion) comprising $40.5 billion (Sh5.2 trillion) domestic and same amount in external loans.
  • In the past three months the strong shilling has come in handy in helping the state reduce its debt.

Kenya owes China $7.2 billion (Sh920.52 billion) in loans making it the leading lender by country rankings, even as President William Ruto looks west for more financing and trade cooperation.

Official data shows the Asian giant is still a major lender to Kenya mainly for the development of roads rails and port infrastructure.

It is the second biggest majorl lender after the World Bank, whose credit line to Kenya is currently at an estimated $14billion (Sh1.8 trillion)

The country’s debt as …

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food inflation
    • Africa failing to meet the needed sustainable agriculture practices
    • Adoption of sustainable agricultural practices remains low across the continent
    • Digital development key to agro-development in Africa

Food inflation in Africa

Food inflation in Africa is worsening by the day, with the World Bank reporting that 5 of the World’s top 10 countries with the highest real food inflation rates are African countries.

The World Bank’s May 2024 “Food Security Update” highlights sustainable agriculture importance to Africa’s agri-food systems.

“The tenets of sustainable agriculture entail reconciling environmental and social equity with economic development in order to provide for the present without compromising the ability of future generations to meet their own needs,” reads the report in part.

Analysts suggest that sustainable agriculture practices seem elusive for Africa, given that Africa holds 60 per cent of the World’s arable land. Yet, it cannot feed itself, let alone the rest of the World.

Intra-regional trade in Africa

Intra-regional trade in Africa serves as the backbone of economic transformation. East African Community (EAC) member states are increasingly trading with one another and with other African countries. At the same time, they reduced their trade with other continents like Europe, Asia, and other parts of the world, shaping the intra-regional trade in Africa’s dream projected to boost commerce and livelihoods on the continent.

The seven countries in the region (as of 2023) increased their trade with the rest of Africa by $584.6 million to $4.3 billion in the fourth quarter of 2023, a 14 per cent rise compared with a similar period in 2022, according to the latest data by the EAC Secretariat.

Cross-border trade within the region also recorded a 12 per cent rise, from the previous year’s $2.6 billion to $2.9 billion in last year’s Quarter 4, indicating rising trade within the region over the year.


  • The inaugural Korea-Africa Summit 2024 highlights the strategic importance of Africa’s rich resources and market potential for South Korea.
  • Asian economic powerhouse seeks to firm up ties between Seoul and 48 African nations through industrial infrastructure, digital transformation, and sustainable investments.
  • Summit is also building on previous successes and aspires to foster mutual growth while addressing climate change, food security, and health.

South Korea is hosting a key summit for the first time with Africa, a forum that has seen leaders from 48 countries across the continent converge in Seoul to discuss expansive economic ties and cooperation between the two regions. With a focus on industrial infrastructure and digital transformation, the Korea-Africa Summit aims to leverage Africa’s rich resources and untapped market potential to foster mutual growth and sustainable growth.

Authorities in South Korea have outlined the agenda: tapping into Africa’s vast mineral wealth and growing market, which now stands …

Kenyans in the diaspora
  • Kenyan Shilling to Reach Sh138 this month as effects of global rates and heavy rains come alive
  • Additionally, the minor decline in the foreign exchange reserves between April and May signals interventions in the forex market by the CBK.
  • The CBK is expected to leave rates unchanged at 13 per cent at its June meeting to support these dollar inflows and provide positive yields to investors.

Financial experts are now predicting that the Kenyan shilling will depreciate to Sh138 against the US dollar by the end of June 2024.

The analysist from pan African market insights firm Stears, say that the Kenyan shilling witnessed large swings in May, after appreciating 2.09 per cent between May 2 and 16. This saw the local currency resume a consistent depreciation to close the month at Sh133.37 against the dollar.

Stears notes that although the currency remained relatively unchanged compared to April, on average, …

African Economic Outlook 2024
  • African Economic Outlook 2024 calls for an overhaul of the global financial architecture to transform African economies.
  • Seventeen African economies are projected to grow by more than 5 per cent in 2024, potentially increasing to 24 by 2025.
  • Growth in Southern Africa is projected to pick up slightly from an estimated 1.6 per cent in 2023 to 2.2 per cent in 2024

East Africa is projected to lead GDP growth on the continent, amidst global challenges, according to the African Development Bank Group’s African Economic Outlook 2024 report. This region is expected to see the fastest growth, with real GDP growth rising from an estimated 1.5 per cent in 2023 to 4.9 per cent in 2024 and 5.7 per cent in 2025.

However, the economic uncertainties in South Sudan and Sudan due to conflict have led to a downward revision of 0.2 percentage points for 2024 due to larger-than-expected …

Kenya's export market -Kenya Looking to Boost Exports to $11.5Bn by 2028.
  • Kenya’s Export Promotion and Branding Agency has unveiled its strategic plan to grow Kenya’s export market to $11.5 billion by 2028.
  • For established markets, Kenya aims to implement consolidation and diversification interventions.
  • In the period Kenyan exports grew by over Sh2 billion into the country’s top 25 markets.

Kenya’s Export Promotion and Branding Agency has unveiled its strategic plan to grow Kenya’s export market to $11.5 billion by 2028. This will be a 10 percent increase from the $ 6.7 billion (Sh873.1 billion) recorded in 2022.

The agency through the implementation of the 2023/2024 – 2027/2028 strategic plan, says Kenya is set to be positioned among the top 50 global brands.

This renewed push comes at a time when Kenya’s export value for the first time in history hit $7.7 billion (Sh1trillion) in 2023, according to the 2024 economic survey by KNBS. The great performance was contributed by tea which …

Burger Consumption in 2023
  • Burger Consumption in 2023 topped on March 10th recording the highest orders in Kenya
  • Kenya ranks number in Sub-Saharan Africa for the highest number of burger orders delivered in the past 12 months.
  • Chicken burgers remain the most popular, with ‘double’ burgers being the norm, and the Smash burger trend sweeping Kenya with a staggering 444 per cent growth.

Kenya has topped sub-Saharan Africa for the highest number of burger orders delivered in the past 12 months. Insights contained in Glovo’s annual report on burger consumption in Kenya show that Kenya saw a 35 per cent increase from May 2023 to April 2024.

This achievement makes Kenya the number one country in Sub-Saharan Africa for the highest number of burger orders delivered, with Nigeria and Uganda following respectively.

It also ranks Kenya second among all African markets in the number of customers with burger orders, just behind Morocco.

In total, …

Kenyan Shilling to Reach Sh138
  • Kenyan Shilling drop to Sh100 against the dollar will mirror the pre-2020 levels 
  • A weak shilling means costly imports and the burden is often passed to the consumers.
  • The exchange rate affects how much we earn from exports.

Kenya Shilling strengthening against the US dollar to the pre-2020 level of about 101 can only be realised sometime in September, according to market analysts.

The latest monetary update by the international research body, Economic Intelligence Unit (EIU), shows the US dollar will remain bullish against the local currencies for much longer amid the high Fed rate which will be maintained for much longer.

“The Fed cuts will come later than we previously expected,” the report reads.

“We have pushed the forecast for the date that the Fed will begin reducing its policy rate to September, from June previously, and now expect a 50-basis-point reduction before year end (from 75 basis points …

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