Browsing: Kenya

• Kenyan businesses in the hospitality and tourism sector are the most confident they will post growth in Q2
• Businesses in the energy sector are also optimistic of better Q2 despite challenges in the first quarter.
• The education sector reflects a balanced sentiment, with 33 per cent expressing extreme, moderate, and slight confidence in revenue growth.

Kenyan businesses in the hospitality and tourism sector are the most confident that they will grow their revenues in the second quarter of 2024 according to a new survey by Kenya National Chamber of Commerce and Industry (KNCCI).

Compared to other sectors, the hospitality and tourism sector exhibits a stronger sense of optimism, with 41 per cent extremely confident, 29 per cent moderately confident, 18 per cent slightly confident, and 12 per cent not confident of increasing their revenues.

In the agriculture sector, results indicate a mixed outlook, with 17 per cent of Kenyan businesses …

• New hotel room developments in Kenya have dropped.
• With continued signing activity (19 hotels with about 5,200 rooms in 2023) Egypt now accounts for 28 per cent of the total pipeline.
• When it comes to hotels under construction, Marriott International leads the way, with 138 hotels (15,011 rooms) currently being built.

Kenya has ranked seventh in Africa among the countries with the highest number of hotel room developments by international hotel chains, a drop from position five in 2022.

This is according to the latest survey by Lagos-based W Hospitality Group, in association with the Africa Hospitality Investment Forum (AHIF). From the survey, Kenya has 31 hotels with a total of 4,268 rooms on the pipeline with an average room size in these hotels is approximately 138 square feet.

North Africa continues to dominate the planned supply, with Morocco and Egypt together comprising almost 31 per cent of the …

• Kenya’s equity market has received an upgrade on its classification by the FTSE Russel Index from “Restricted’ to “Pass” on the repatriation of capital and income.
• This development partly indicates that Kenya is now a maturing market, characterised by increased transparency, liquidity, and a growing investor confidence.
• Across Africa, data shows that an estimated $700 million was reported held in 11 African countries, with Nigeria accounting for the lion’s share.

FTSE Russell, a global provider of analytics, benchmarks and data services, has endorsed the Nairobi Securities Exchange Plc (NSE), ushering a new era in Kenya’s financial services industry. The NSE has announced that as of March 2024, the Nairobi bourse has been reclassified by the FTSE Russell Governance Board, moving from a “restricted” to a “pass” status.

This pivotal change is not just a mark of progress, but a move to underscore the resilience and strategic navigation of the Kenyan …

• According to an Economist Intelligence Unit (EIU) report, Kenya is among the best places for doing business globally.
• Venezuela has been ranked as the worst country in which to do business.
• Qatar has implemented a $220 billion investment program over the past decade, mainly focused on infrastructure.

Kenya has been ranked among the places with a weak business environment. Still, it has the potential for improvement over the next five years. According to a report by the Economist Intelligence Unit (EIU), it is among the best business places, a global business intelligence & market insights company.

Kenya and Angola were the only African …

• Equity Bank dividend payout of $0.03 (KES4) per share will amount to a 36 per cent payout of the regional lender’s $331.6 million net profit.
• Customer numbers grew to 19.6 million, translating to an increase in deposits, which hit $10.6 billion in 2023.
• Loan books also increased to $6.7 billion (KES887.4 billion) from KES706.6 billion in 2022.

Equity Group’s profits saw a five per cent decline to $331.6 million (KES43.7 billion) for the financial year ending in December 2023, down from $349 million (KES46 billion) the previous year. However, despite the drop, Equity Group’s dividend payout has hit record …

• Kenya Airways losses for FY2023 have majorly stemmed from FX fluctuations.
• Despite the heightened operating costs, Kenya Airways achieved an operating profit of $79.4 million.
• International Air Transport Association (IATA) predicts full recovery of the aviation industry from the Covid-19 crisis in 2024.

Kenya Airways net losses for the trading period ending December 2023 have dropped to $171.6 million (KES22.7 billion) majorly attributed to the forex exchange losses suffered during the review period.

The latest result is a 41 percent reduction from the $289.6million (KES38.3 billion) reported in 2022 in what the airline attributes to continuing efforts aimed at navigating KQ’s back onto the path to profitability.

These losses stemming from fluctuations in currency exchange rates (FX Losses), impacted the airline’s financial position, posting the greatest drawback to its financials with $181.4 million loss.

Kenya Airways Chief Executive Allan Kilavuka said that in the review period the airline increased flight …

• Cyber security spending in Kenya is still low with half of state entities exposed to malicious attackers.
• Cyber Security Spending is projected to reach $8.4 billion in 2027.
• Banks will account for 85.6% of the financial services sector’s total spending on security products.

The increasing online threats to businesses across the region will see companies and government increase their cyber security spending to excess of $6.2 billion this year, new industry insights have shown.

Spending on security products and services in the Middle East and Africa (MEA), excluding Israel, will grow 10.3 per cent in 2024, reaching $6.2 billion, according to the latest Worldwide Security Spending Guide from International Data Corporation (IDC).

The firm’s newly released forecast indicates that this figure will reach $8.4 billion in 2027, representing a compound annual growth rate (CAGR) of 12.0per cent over the 2023–2027 forecast period.  Security software will account for the majority of …

• Kenya’s National Security Council is currently scrutinizing cybersecurity threats posed by TikTok.
• Lawmakers are citing data privacy, cybersecurity threats, and TikTok’s potential as a primary conduit for misinformation in their push to restrict its use in government-issued devices.
• Already, TikTok is accused of cases of abuses in Kenya, including identity theft, proliferation of fraud, and spreading sexually explicit content.

Authorities in Kenya are at a cybersecurity crossroads, contemplating joining Somalia to become the second African nation to enforce TikTok ban on government-issued devices.

This move, revealed by Cabinet Secretary Prof. Kithure Kindiki cites rising cybersecurity threats posed by social media platforms, notably TikTok, within the corridors of Kenya’s National Security Council (NSC).

The NSC’s concerns are not unfounded. Globally, TikTok, a video-sharing platform, faces heightened scrutiny over data privacy, cybersecurity threats, and its potential as a primary conduit for misinformation.

Already, countries such as Australia, Belgium, Canada, and the …

• East Africa’s banking giant KCB Group reports heightened operational expenses, which surged to $627 million in 2023, up from $447.9 million in 2022.
• The costs are associated with the consolidation of its subsidiary in the Democratic Republic of Congo, Trust Merchant Bank (TMB),
• Additional expenditures were related to a voluntary retirement scheme as well as litigation fees.

KCB Group, one of East Africa’s banking giants, has reported a net profit decline to $282 million for the year ending December 2023, from $307 million in 2022.

The bank has attributed this decline to increased operational costs and higher provisions for bad loans as primary reasons for the downturn in profitability.

In a period marked by economic challenges and strategic expansions, KCB Group faced heightened operational expenses, which surged to $627 million in 2023, up from $447.9 million in 2022.

DRC-based Trust Merchant Bank consolidation costs

This increase was largely due to …

• Remittance inflows amounted to $385.9 million in February, compared to $309.2 million in February 2023, an increase of 24.8 per cent.
• The cumulative inflows for the 12 months to February 2024 totaled $4.33 billion compared to $4.03 billion in a similar period in 2023, an increase of 7.5 per cent.
• The US remained the largest source of remittances to Kenya, accounting for 54 per cent in February 2024.

Remittances to Kenya continued on a growth trajectory in February, latest Central Bank of Kenya (CBK) data shows, as easing inflation in the United States saw the country maintain its position as the leading source of inflows.

This comes amid a positive projection for the year where World Bank has forecast a 2.5 per cent increase on inflows to Sub-Saharan Africa, with Nigeria, Ghana and Kenya as leading recipients in the continent.

Remittance inflows in Kenya amounted to $385.9 million in February, …