Browsing: Kenya

• Kenya’s economic resurgence in 2024 proving a reality following a notable upturn in recent months, marked by positive indicators across sectors.
• According to CBK, leading indicators point to the continued strong performance of the Kenyan economy in the first quarter of 2024.
• According to the World Bank, Kenya’s economic growth is projected to be 5.2 per cent, boosted by increased investment in the private sector as the government reduces its activities in the domestic credit market.

A strong rebound

Kenya’s economic prospects are looking brighter, attributed to the interventions by the World Bank and the International Monetary Fund, which have played a massive role in easing volatility witnessed less than three months ago.

Major economic indicators in the country show that confidence is slowly creeping back after the government secured the International Monetary Fund’s facility to pay back the Eurobond.

The repayments had triggered volatility in financial markets, including the …

• Remittance inflows for March grew to $407.8 million, up from $385.9 million in February, with the US maintaining its lead as the top source for Kenya’s remittances.
• This was also higher by 14.2 percent compared to the $357.0 million sent in the same month last year (March 2023), according to official data by the Central Bank of Kenya (CBK).
• The cumulative inflows for the 12 months to March 2024 totaled $4.4 billion compared to USD 4 billion in a similar period in 2023, an increase of 10 percent.

Kenyans living and working abroad sent home more money in March, boosting the country’s forex reserves and supporting families and friends.

Remittance inflows for March grew to $407.8 million, up from $385.9 million in February, with the US maintaining its lead as the top source for Kenya’s remittances.

This was also higher by 14.2 per cent compared to the $357.0 million sent …

• Kenya looks to rise on its estimated $38.4 million blue economy investments to grow sector revenue to $921 million annually. 
• Africa, with its vast coastline and rich marine resources, is poised to harness the immense potential of the blue economy.
• BlueInvest Africa is a business-to-business event that aims to catalyse the growth of Africa’s blue economy through strategic investments.

The Kenyan government is looking to ride on its estimated $38.4 million (KES 5 billion) investments in the blue economy initiatives to increase revenue to $921 million (KES 120 billion) annually.

This will be a threefold increase from the current $288.6 million (KES 37.6 billion) that the state generates from the blue economy.

The Cabinet Secretary in the Ministry of Mining, Blue Economy & Maritime Affairs, Salim Mvurya, said that part of the plan was to map the fisheries’ infrastructure across the country.

“We want to increase the revenue to Sh120 …

• 121 African startups secured $466M, marking a 27 per cent drop from the previous quarter; women-led startups got 6.5 per cent of the capital.
• About 87 per cent of startup funding in the three months to March went to entities in Nigeria, Kenya, Egypt, and South Africa.
• Gender imbalance persists as only 6.5 per cent of the financing went to female-led startups in Africa.

The big four economies of Nigeria, South Africa, Kenya, and Egypt continue to attract the highest share of funding going to startups in Africa, even as the ecosystem suffered a 27 per cent drop in financing to $466 million in the three months to March 2024.

The latest analysis from Africa: The Big Deal shows that 87 per cent of startup funding in the three months to March went to upcoming entities in Nigeria, Kenya, Egypt and South Africa.

Attracting $160 million, Nigeria’s economy accounted for …

• EAPI Retail Forum will take place on the event’s second day on 17 and 18 April 2024 in Nairobi.
• Rising consumer demand has led to the development of strong local retail brands.
• Key speakers at the EAPI Retail Forum say a growing middle class and the rise of digital connectivity are boosting the retail sector.

Retail is emerging among the most vibrant sectors of the East African economy. Kenya’s capital city, Nairobi, has become an important retail market in its own right and a stepping stone into the rest of the country and wider East Africa.

Nairobi is a rising regional shopping destination, the headquarters to many regional retail and food and beverage (F&B) businesses, and a Launchpad for retail concepts in other East African areas.

Digitally savvy middle-class Kenyans are demanding local brand experiences that align with what they see regionally, continental, and internationally and are boosting the retail …

• Kenyan doctors have rejected a $18.3 million (KES2.4 billion) offer to return to work.
• The top demands of over 7,000 medics include immediate hiring of trainee doctors, adequate medical insurance coverage for doctors and their dependents, and fixing delays in pay.
• The labour boycott also calls for paying doctors working in public hospitals as part of their higher degree courses.

In a move that further throws Kenya’s healthcare system into a spin, public hospital doctors under the Kenya Medical Practitioners, Pharmacists, and Dentists Union (KPMDU) lobby have rejected a $18.3 million (KES2.4 billion) offer to leave the streets and go back to work.

The latest twist underlines the deepening rift between healthcare professionals and Kenyan officials amid a strike that has now stretched into its third week since March 15.

Representing over 7,000 members, KMPDU initiated the strike to address several critical issues, including the demand for the payment of …

• Tourism in Kenya is the third-biggest foreign exchange earner after remittances and agricultural exports.
• The tourism sector’s performance has been impressive, with earnings reaching $ 2.7 billion in 2023, a 32 per cent growth from $1.8 billion recorded in 2022.
• In 2024, the sector is projected to recover to pre-pandemic levels per the strategy for tourism in Kenya 2021-2025.

Tourism in Kenya

Tourism is Kenya’s third-highest foreign exchange earner after remittances and agricultural exports.

According to the Tourism Research Institute, the industry accounts for about 10 per cent of Kenya’s gross domestic product and about 5 per cent of its formal employment.

Kenya has been a significant tourist destination in East Africa, attracting visitors worldwide to its wildlife parks, sandy beaches at the coast, diverse flora and fauna, cultural heritage, and scenic landscapes, to name a few.

However, the outbreak of COVID-19 sent shockwaves to the tourism sector, bringing it …

• 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 …