Browsing: Kenya

• 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 …

• The SAP FCPA violation will result in a $100 million fine from the US Securities and Exchange Commission.
• From December 2014 to January 2022, SAP was found to have utilized third-party intermediaries and consultants to pay bribes to government officials in order to secure business.
• The SEC’s action is part of a coordinated global settlement that involves the United States Department of Justice and criminal and civil authorities in South Africa.

German software giant SAP has disclosed that it paid Kenyan government officials for tenders in the country. The company has now agreed to pay $100 million in fines to settle charges of paying bribes to secure business deals in Kenya, Tanzania, South Africa, Malawi, Ghana, Indonesia, and Azerbaijan.

In 2019, a whistleblower complaint filed with the US Securities and Exchange Commission and the US Department of Justice indicated that SAP was involved in corruption and bribery, thereby violating US …

• The Kenyan government owes media companies $10.8 million (Sh1.7 billion) in pending media bills.
• Kenyan media companies have, however, been challenged to become innovative during the tough economic times and reinvent their operating models to remain competitive.
• Kenya’s media industry is among the sectors worst hit with the changing business models according a 2023 report by Oxford university and Reuters Institute for the Study of Journalism.

The Kenyan government has offered to pay media organizations $10.8 million (Sh1.7 billion) which it owes in pending media bills, a move that will significantly help them address financial struggles within the sector brought about by the changing media landscape.

Media organizations in Kenya have been grappling with cash flow challenges due to outstanding payments from the State, leading some companies to resort to employee layoffs and substantial budget cuts as a consequence of mounting financial difficulties.

This situation arises at a time when …

• MediaTek Technology says it aims to improve 5G adoption in East Africa as a strategic priority in 2024.
• Some of the best 5G smartphones in Kenya are powered by MediaTek’s Dimensity chipsets.
• Broadband demands are expected to continue rising in the Sub-Saharan region with the advent of augmented reality.

Fabless semiconductor company MediaTek Technology will collaborate with telecom operators and original equipment manufacturers (OEMs) in Kenya and greater East Africa region to promote the adoption of 5G and contribute to narrowing the digital divide in the region.

This partnership is occurring at a time when significant progress has been made in terms of 5G adoption, not only in Kenya but across the continent, over the past couple of years.

Kenya ranks as the third-largest country in Africa in the continent’s mobile phone market, with 5 million smartphones shipped annually.

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Some of the best 5G smartphones in the country are …

• Vienna Payment Solutions has joined the Kenyan market by partnering with Interswitch East Africa.
• Kenya has been a regional powerhouse in digital payments, with the 2023 Economic survey placing the value of mobile money transfers at $47.6 billion.
• Interswitch East Africa Head of Technology, Naomi Wachira, says the solution marks a significant leap towards bridging gaps in the payment industry.

Austria-based firm Vienna Payment Solutions has entered the Kenyan market through a partnership with Interswitch East Africa, as the increasing popularity of mobile money continues to open up a new frontier for spirited competition in the space.

Following the partnership, the two companies introduced VIPASO, a payment solution comprising two applications: a consumer app and a merchant app. This initiative aims to enhance payment solutions for banks, players in the hospitality industry, on-the-go services, financial institutions, and retailers.

This comes when merchant payment platforms are projected to grow and …

• The East African region and the Common Market for Eastern and Southern Africa (COMESA) were the single biggest trade blocs that consumed Kenya’s exports.
• According to the Kenya National Bureau of Statistics (KNBS), the value of Kenya’s exports to the EAC totaled $496.7 million (Ksh77.9 billion) up from $431 million (Ksh67.7 billion).
• There was an increase in earnings from exports to Uganda (27.7%), Tanzania (32.1%), South Sudan (64.4%) and the Democratic Republic of Congo (78.6%).

Kenya’s exports to her East African Community (EAC) neighbours increased in the third quarter of 2023, as the country continued to push volumes amid efforts to cut the high import bill.

This comes as Africa increasingly remained Kenya’s biggest export market, even as economies edge closer to operationalizing the African Continental Free Trade Area (AfCFTA).

The East African region and the Common Market for Eastern and Southern Africa (COMESA) were the single biggest trade …