Browsing: Kenya

The indicator in question in this column is figure 17.6.

17.6 of what?

According to published government statistics, the median weighted average age of an East African citizen is 17.6 years old. Among the 157 million East Africans alive today there are equal numbers of people over 17.6 years old as there are people under 17.6 years old.

So how do 17.6 years as a median age compare to other locales around the world?

If the EAC were a country it would be the 13th youngest country in the world with Uganda, Burundi, and Tanzania bringing down the weighted average against the relatively older Kenya. To add perspective, the median age of both the #1 and #2 economies of the USA and China are more than twice as old at 37.8 years and 36.8 years respectively than an East African. Even more dramatic, ageing Japan has 46.5 years as median …

A visiting renowned German scholar has cautioned Tanzania not to  sign an Economic Partnership Agreement (EPA) trade pact with the European Union (EU), saying the deal is rhymed against the country`s aspiration of becoming an industrial economy.

Addressing reporters in the capital, Dar es Salaam on 15^th April, 2019, Helmut Asche who is Professor of Economics, Politics and African studies at the University of Leipzig said as a country set to build industries and export produce, Tanzania should not sign deals that flood its market with imports.

The EPA is an anticipated trade deal between the East African Community (EAC) and the EU which gives EAC products total access to the EU market, with 82.6 per cent of imports from the EU allowed on the EAC market.

Professor Asche warned African countries against signing EPA because the arrangement does not favour their economies. He further said that Tanzania in …

The portal allows users to quickly request for and receive an instant tender security

NIC Ventures, a subsidiary of NIC Group, in partnership with Masterpiece Fusion have launched an online platform dubbed “BeeDee” for trading of securities, in the wake of a strong demand in trade finance.

The platform offers a more convenient, quick and efficient self-service process for both customers and non – customers seeking to quickly request for and receive bid bonds.

BeeDee portal, is available on mobile devices and web through a mobile phone application and web portal respectively, allowing high availability and mobility since its accessible anywhere and anytime.

James Muigai, NIC Ventures Limited General Manager notes the new online service would offer companies and business entities convenient and fast access to bid bonds for various tenders they bid for since the online process takes few minutes, hence absorbing the delays experienced during the manual bidding …

Members of Parliament from eastern African countries are on 15^th April, 2019 expected to launch the Eastern Africa Parliamentary Alliance for Food Security and Nutrition (EAPA FSN) – a sub-regional platform aimed at promoting the right to food in eastern Africa through improved legislation.

According to a statement issued on 14^th April, 2019 by the Food and Agriculture (FAO) of the United Nations, the launch is in line with the first annual meeting in Tanzania in 2019.

The platform came after realizing that malnutrition continues to be a major impediment to economic development, whereby it is estimated that 58 million children under the age of five years are too short for their age (stunted) in Africa.

`Childhood malnutrition is costing the African economy about 11 per cent of Gross Domestic Product (GDP) every year, whereas preventing malnutrition delivers $16 in returns on investment for every $1 spent in …

The service guarantees security and in-call stability, Telkom says

Telkom has introduced a new cloud-based fixed voice service dubbed “Omniconnect”, allowing SMEs and corporates to outsource for robust and secure cutting-edge technology.

Telkom Hosted PBX service will deliver a world-class end-to-end software and hardware system, powered by global technology company Avaya.

Besides making and receiving calls, the service will also offer other features such as conference calls and the ability to integrate with email and the mobile phone.

The subscription-based service will eliminate the need for businesses to make heavy initial capital investment to acquire and maintain the fixed telephone system; nor will they have to host the same on their premises.

Businesses can also flexibly upgrade or scale down the service, in line with changing needs and technology trends.

Telkom Enterprise MD Kris Senanu, said: “This solution will free corporates and SMEs to focus on their core businesses, without …

2018 profits dropped to US$6.1 million from US$18.8 million in 2017

Cement manufacturers-Bamburi Cement has expressed concerns over the Uganda-Rwanda border row, warning it could derail its earnings.

This comes amid a drop in net profit for the year 2018, reported at Ksh614 million (US$6.1 million) down from Ksh1.9 billion (US$18.8 million) in 2017.

“The difficulties experienced in the Uganda-Rwanda border have significantly impacted exports to Rwanda from Uganda and the Group hopes this matter is resolved expeditiously,” the company said in its financial statement signed by Chairman John Simba and Group Managing Director Seddiq Hassani.

The Nairobi Securities Exchange (NSE) listed firm has however reported a 3.7 per cent jump in turnover, from Ksh36 billion (US$3.6 billion) in 2017 to Ksh37.2 billion (US$3.7 billion) in 2018 as cement volumes grew by nine per cent.

“The Group achieved this growth despite a market decline of five per cent in Kenya, …

Bottlenecks to the completing of the planned Trans African Highway include difficult terrain and climate conditions, inadequate funding for Road maintenance and upgrades as well as insecurity due to civil conflicts that have damaged roads that now require reconstruction.

There is a new-found political will and High-level commitments by the Democratic Republic of Congo (DRC) and Uganda to develop and upgrade the Northern Corridor Road Sections  of their country of the Trans-African Highway (TAH) Network No 8 from Lagos, Nigeria to Mombasa that is expected to open the whole of Africa to interstate trade.

Uganda and DR Congo are already working to fix the gaps of the northern corridor in Mbarara-Bushenyi-Kikorongo-Mpondwe-Kasindi-Beni-Komanda-Kisangani  which measures 940Km.

Bottlenecks to the completing of the planned TAH include difficult terrain and climate conditions, inadequate funding for Road maintenance and upgrades as well as insecurity due to civil conflicts that have damaged roads that now require …

Diaspora transaction volumes rose to Ksh107 billion in 2018

Equity Bank’s Fintech innovation and digitization has powered rapid growth of Diaspora banking boosting the total revenue income by 38 per cent.

Diaspora transaction volumes grew by 196 per cent to Ksh107 billion (US$1.06 billion) while the commissions recorded a 169 per cent rise from Ksh279 million (US$2.76 million) in 2017 to Ksh751 million (US$7.43 million) after the same period last year.

The results came in the backdrop of a unique business model and strategy that creates resilience while managing headwinds of interest rate capping and challenging macroeconomic and business environment.

Speaking during the release of the 2018 full year results, Equity Group CEO & MD Dr. James Mwangi noted that, remittances have taken a significant market share moving from Ksh36 billion(US$356.1 million) to Ksh107 billion(US$1.06 billion) and hopefully this year surpassing Ksh200 billion (US$1.98 billion) in diaspora remittances processing simply …

Private capital remains an important driver of investment activity in much of Africa

Office yields remained largely stable in most African markets over the past two years, anchored by patient domestic capital as local investors assume a longer-term perspective, a new analysis by Knight Frank shows.

The analysis, published in a new Knight Frank report dubbed Africa Horizons, shows that of the 35 office markets covered, yield remained stable in 16 locations in the two years to 2018 and rose in six, while 13 markets recorded declines.

Africa Horizons provides a unique guide to real estate investment opportunities on the continent, examining developments in agriculture, hospitality, healthcare, occupier services (office), capital markets, residential and logistics property sectors.

“By taking a longer-term perspective, and in some cases a lower return profile, local investors have remained more active than headline figures suggest. This explains how yields in most major markets have remained …

Coverage of retirement schemes in Kenya remains below 50%

Majority of Kenyans securing their old age by saving under retirement schemes are still exposed to tough times during sunset years, a survey has revealed.

The study by pension fund administrator Zamara Group has revealed that though pension’s legislation in the country has improved the governance and operations of the retirement funds, it has done little to improve the coverage and adequacy of retirement benefits to individuals.

Coverage of retirement schemes in Kenya has remained relatively low with less than 50 per cent of the formal sector covered and coverage of the much larger informal sector virtually non-existent.

According to Zamara Group CEO Sundeep Raichura, even those who are saving under retirement schemes have insufficient coverage to provide an adequate income when they retire.

The study which covered 65,000 retirement scheme members, spread across more than 200 retirement funds in the …