Browsing: Kenya

• The men’s world marathon record holder, Kelvin Kiptum has died in a road accident aged 24, in Kenya, his home country.
• Born in the Rift Valley, Kenya’s long-distance running bastion, Kiptum was barely a teen when he began following elite athletes training in the legendary high-altitude region.
• At just 24 Kiptum was one of the most exciting road-running prospects in recent years.

The men’s world marathon record holder, Kelvin Kiptum has died in a road accident aged 24, in Kenya, his home country. The grisly road accident also claimed the life of Kiptum’s coach, Rwandese Gervais Hakizimana, with a third occupant of the vehicle, Sharon Kosgey, surviving the crash and rushed to hospital.

The police have reported that Kelvin Kiptum, lost control of his vehicle while driving in Kaptagat Uasin Gishu County, in the southwestern part of Kenya, at 11 pm local time.

According to the local county commander, Peter …

• Cyber threats increased by 943 per cent in the three months to December 2023, with 123 million cases detected in the previous quarter.
• In response to these threats, Kenya’s National Cyber Security Centre issued 8.06 million advisories during the period under review.
• This represented a 44.4 per cent increase compared to the 5.6 million advisories issued between June and September.

The Communications Authority of Kenya reports that the number of cyber threats in Kenya increased in the three-month period leading up to December 2023.

In its 2023/24 Q2 cyber security report, the regulator notes that the number of cyber threats rose to more than 1.2 billion cases, up from 123 million threats detected in the previous quarter, representing a 943 percent increase.

The increase is attributed to the enhancement of Kenya’s cyber threat monitoring capabilities and the increased exploitation of ‘system vulnerabilities,’ driven by the increased deployment and use of …

• The cost of borrowing in Kenya has been going up since October last year, when it was at 10.50 per cent, before two consecutive raises.
• This means banks are likely to adjust their interest rates upwards, pushing the cost of borrowing beyond the reach of many.
• The majority of bank rates are currently above 20 per cent, amid a high default rate as banks struggle with Non-Performing Loans (NPLs).

Higher interest rates to raise the cost of borrowing in Kenya

The cost of borrowing in Kenya is set for yet another rise if banks are to factor in the latest Central Bank of Kenya increase in the base-lending rate.

The Central Bank of Kenya (CBK) has raised borrowing costs to highs last seen nearly 12 years ago, as it moves to try and contain the country’s inflation, which has started to pick.

On Tuesday, the Monetary Policy Committee, CBK’s top …

• Kenya’s distressed debt levels are pushing the country in a tight spot following years of successive borrowing, the Institute of Public Finance (IPF) says in its latest Macro Fiscal Analytical Snapshot Report.
• This is compounded by the inability of the private sector to create woefully insufficient jobs for millions of young people entering the job market annually.
• The report notes that since 2014, persistent high fiscal deficits have resulted in a swift escalation of public debt, now standing at 70 per cent of the GDP.

Kenya risks missing its economic growth targets in the medium-term as the country grapples with high debt distress and a deteriorating macroeconomic operating environment.

According to the Institute of Public Finance (IPF) in its latest Macro Fiscal Analytical Snapshot Report, the country finds itself in a tight spot following years of successive borrowing.

This is coupled with the inability of the private sector to create …

• Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.
• Within the Southern Africa region, higher integration will drive its share of total intra-Africa exports to a third by 2035.
• The MENA Region and the Middle East-East Africa corridors will also be substantial, with combined trade volume expected to reach almost USD200 billion by 2035.

Increased infrastructure interconnectivity by the African states has been identified as the key driver that will lead to success of the African Continental Free Trade Area (AfCFTA). Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.

This comes after members after some member states expressed concern that the African trade system has failed to grow beyond the estimated 14–15 per cent over the last three to four years.

However, prospects are now positive that intra-Africa trade will grow 3.9 per …

• EAGC funding seeks to tackle trade challenges directly by removing trade impediments and building food export capacity in Kenya, Tanzania, and Uganda.
• This is across export value chains such as Maize, Beans, Millet, Sorghum, and Rice.
• Further, a core part of this is to increase the ability of grain producers to export both regionally and to the rest of the world.

Food export competitiveness in East Africa

Through USAID’s Economic Recovery and Reform Activity (ERRA) program, the United States government has awarded a three-year grant worth $2 million to the Eastern Africa Grain Council (EAGC).

The funding is geared towards strengthening the competitiveness of export-oriented staple food value chains in East Africa.

ERRA program is delivered by TradeMark Africa (TMA), with funding from Feed the Future. Via its five-year $75 million program, USAID and TMA are driving transformative trade and investment reforms in the East and Horn of Africa.

This …

• There is a Climate Funding gap of 40 billion dollars in blue carbon, yet no Kenyan firms are undertaking it.
• According to the World Bank, Kenya remains vulnerable to frequent climatic shocks that pose significant economic risks.
• The East African country has been gravely affected by changing weather patterns and a fall in disposable income available for necessities.

Despite their considerable potential, Kenya is foregoing billions of dollars in untapped climate financing opportunities. While many startups are entering this sector, industry experts argue that the current figure remains insufficient to combat climate change adequately.

Pangea Accelerator, an investment platform that provides funding for startups and small and medium enterprises (SMEs), says that the region needs to grow the number of startups, fully focusing on the environment. The Founder of Pangea, Jonas Tesfu, says that as a country, Kenya needs to have a lot of innovative businesses join climate change initiatives …

• 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.

The local …

• 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 …