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- Kenyan Shilling, which has been on a free-fall against the Dollar since mid-last year, fell to a record-low of 162 to the greenback with projections it could tumble further into the year.
- The unit has shed over 31 per cent of its value to the dollar year-to-date, as the Fed rate hikes in the US took a toll on currencies across the different markets.
- According to Kenya National Bureau of Statistics (KNBS), the Kenyan shilling also ceded ground against the Euro, Pound Sterling and the Japanese Yen.
The Kenyan government is facing a major headache as the country’s currency continues to fall against the US Dollar and other major currencies, hitting a new low this week.
Kenyan shilling, which has been on a free-fall against the dollar since mid-last year, fell to a record-low of 162 to the greenback with projections it could tumble even further this year.
- Rising volatility in Kenya’s Fixed Income Market derives from a combination of global and domestic factors.
- The yield curve soared fastest at the head and upper belly of the curve, rising by a cumulative 661bps on the three-month treasury bill.
- There is hope as it is anticipated, that a rebound in trading activity will happen in 2024.
The Kenyan Fixed Income Market displayed remarkable flexibility last year to experience one of the most rapid annual increases in yields resulting in a notable inversion of the effective yield curve.
According to financial experts, the rising volatility in the fixed income space derives from a combination of global and domestic factors.
On the external front, the rapid monetary policy tightening in 2022 and 2023 led investors to price-in bearish capital gain expectations for bonds.
On the domestic front, the rising concerns around fiscal sustainability indicators, coupled with an elevated inflationary regime in …
- The IMF loan to Kenya provides a much-needed shot in the arm as it navigates debt repayments, including the $2.0 billion Eurobond maturing in June this year.
- The country is expected to repay Eurobond debts of $1.96 billion in 2024, $880 million in 2027, and $978 million in 2028.
- Debt repayment has pressured Kenya as it consumes more of forex reserves and ordinary revenues, wiping out gains in diaspora remittances and tourism earnings.
The IMF loan to Kenya
The International Monetary Fund (IMF) has approved a $684.7 million loan facility for Kenya, giving the East African country the much-needed support to navigate financial pressures amid a maturing Eurobond.
The funds are part of the $941.2 million Extended Fund Facility (EFF) and Extended Credit Facility (ECF) program approved in April 2021 and extended by 10 months in July 2023 to April 2025.
The first review under the 20-month Resilience and Sustainability …
- Safaricom recognized for its outstanding people strategy, work environment, talent acquisition, learning, diversity and inclusion, and employee well-being.
- The telco first received the Top Employer certification in 2022 and has retained it for three consecutive years.
- The certification comes just a few months after the company was ranked the third-best employer in Africa by an American business magazine, Forbes.
Kenya’s leading telecommunications company, Safaricom PLC, has, for the third consecutive year, received recognition as a top employer in both the country and across Africa.
The most recent certification for the year 2024, awarded by the Top Employers Institute (TEI), underscores the Nairobi Securities Exchange listed company’s HR policies and people practices.
The TEI program certifies organizations based on their participation and results in a comprehensive HR best practices survey covering 20 topics across six HR domains. These domains include people strategy, work environment, talent acquisition, learning, diversity and inclusion, and …
- International Finance Corporation targets specific projects in Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.
- IFC’s $30 million (Sh4.8 billion), own-account investment will help Africa Infrastructure Investment Fund 4 Partnership (AIIF4) exceed its final close target of $500 million (Sh80.4 billion).
- A pan-African infrastructure private equity firm called the Africa50 Infrastructure Acceleration firm I is raising up to $500 million for investments
Kenya is among six African countries that International Finance Corporation (IFC) will pump $30 million (about KSh4.8 billion) equity investment to fund works on essential infrastructure.
The fund, managed by Africa Infrastructure Investment Managers (AIIM), part of the Old Mutual Group, will support projects in the telecoms, renewable energy, and transport sectors across Africa but with a specific focus on Côte d’Ivoire, Egypt, Kenya, Morocco, Senegal, and South Africa.
In the telecoms sector, the fund will focus on financing data centers, fiber networks, and communications towers. In …
- Market insights firm Stears says Kenya might not be attracting sufficient fintech investments due to the near-monopoly of tech giant Safaricom PLC.
- On average, Kenya accounted for 8 percent of fintech investments made on the continent between 2019 and 2023. At the same time, Nigeria got 39 percent, Egypt’s 16 percent, and South Africa’s 20 percent.
- Historically, Nigeria has led fintech funding on the continent, enjoying special attention from investors.
Kenya has not been prioritized by fintech investors as much in the last five years compared to other key African markets such as Nigeria, Egypt, and South Africa.
These revelations are highlighted in a report by Stears, a market research company headquartered in Nigeria that specializes in African investments.
According to the report, Kenya, on average, represented only eight percent of fintech investments in the continent between 2019 and 2023. In contrast, Nigeria accounted for 39 per cent, Egypt …
- Consumer spending in countries like Kenya is projected to increase as inflation slows gradually, but overall spending will be cautious and value-driven.
- Entry-level consumers, who spend between $2 and $4 daily, are expected to drive demand, while preferences in the upper segment will evolve to include more refined tastes focused on luxury and convenience.
- The report states that consumers will be more price-conscious, deviating from general global norms, particularly in Africa..
The aftermath of the COVID-19 pandemic, astronomically high commodity prices, global monetary tightening, and food protectionism shaped the consumer landscape in 2023. These realities resulted in a consumer landscape characterized by unhappy consumers with closed wallets, as per the Stears 2024 outlook report.
“World inflation was projected to average 6.9 per cent in 2023, the highest level since 1996, impacting consumer trends globally. However, bright spots exist in the consumer landscape this year,” it says.
Global inflation is …
- Trade tensions within the EAC bloc have intensified lately, with neighboring countries taking adverse actions against each other.
- In the latest development, Tanzania is blocking passenger flights from Kenya Airways to Dar es Salaam, while Burundi has officially closed its borders with Rwanda.
- Elsewhere, Kenya has been pursuing trade deals with the European Union and the United States, leaving regional economies to play catch-up
Heightened trade and political tensions between the East African member states are threatening to erode the gains of a free market and the dividends of a united bloc for a region expected to achieve the fastest growth across Africa this year.
As East Africa increasingly evolves into a focal point for economic growth and development, underlying trade tensions are testing the region’s unity to the fullest. As nations strive to harness the benefits of globalization, differing economic policies and priorities can often strains trade relations defeating …
- With the cost of living ranking done in terms of countries’ major cities, Kenya’s Nairobi has been ranked position 141 out of 173 cities surveyed globally.
- For the ninth time in the previous eleven years, Singapore continued to hold the top spot in the rankings as the most expensive city in the world.
- Kenya’s inflation for the month of December slightly eased to 6.6 percent, down from 6.8 percent in November.
Kenya’s ranking in the cost of living improved in 2023, a result of the country’s decreased cost of living in the 12 months leading up to September, as indicated in the latest report from the International Research Unit, Economic Intelligence.
During this period, Kenya fell 33 places in the rankings of countries surveyed on the world’s cost of living, with Nairobi securing the 141st position out of 173 cities surveyed globally.
According to Economic Intelligence, this suggests that the …
- East Africa is set to outshine other regions in 2024 growth with Rwanda, Kenya, Tanzania and Uganda posting impressive numbers.
- This year, Africa’s overall growth is forecasted at 4 per cent, a notable increase from 3.3 per cent in 2023.
- These are findings of a new Africa 2024 outlook report by Stears, an economic analysis and data-driven insights provider.
The prevailing economic woes in Kenya are projected to continue in 2024 with persistent currency depreciation and inflationary pressures taking toll on individuals and businesses. This is according to a new Africa 2024 Outlook report by Stears, a Nigeria-based economic analysis and data-driven insights company.
Already, the latest statistics show that the Kenyan Shilling has already breached the 160 mark against the US dollar.
Stears’ 2024 Outlook delves into key African countries, specifically Kenya and the continent’s powerhouse Nigeria, projecting persisting economic challenges for both economies.
he macroeconomic analysis …