Browsing: Kenya’s Economy

Kenya's economy in 2023
  • A report by the Institute of Public Finance has projected that Kenya’s economy will remain subdued in 2023, growing at a projected 5%
  • The growth will be at the back of a persistent rise in commodity prices, global events and a high risk of debt distress
  • Support for the agricultural sector and easing of fiscal pressure through budgetary consolidation are among the areas that are likely to shape economic performance during the current budget cycle

A new report has projected that Kenya’s economy will remain subdued in 2023, growing at a projected 5%, owing to a persistent rise in commodity prices, global events and a high risk of debt distress.

According to the Macro-Fiscal Analytic Snapshot 2022/2023, there is an opportunity for Kenya’s economy to register a remarkable upward trend if the government focuses more on fiscal consolidation efforts that include cutting back on non-priority expenditures to increase investment and …

Kenya's economy in 2023
  • The economy recorded an average growth of 5.6 percent in the period between January to September 2022 
  • The Country’s Q3’ 2022 Gross Domestic Product (GDP) hit 4.7 percent. 
  • The growth was largely driven by the non-agricultural sectors

The Kenyan economy recorded an average growth of 5.6 percent in the period between January to September 2022 according to the latest report by Cytonn Investments. 

The annual markets report indicates that the country’s third quarter Q3 Gross Domestic Product (GDP) hit 4.7 percent, adding to the 5.2 percent and 6.8 percent growth recorded in Q2 and Q1 respectively. 

The average GDP growth of 5.6 percent marked a decline from the 7.7 percent average growth recorded in a similar period in 2021. 

“The growth in Q3 was largely driven by the non-agricultural sectors, with accommodation and food, wholesale and retail trade, professional administrative and support, and finance and insurance sectors recording growths of

Most African economies have been staring into an economic abyss, besieged by a plethora of daunting challenges that have left many teetering on the edge of a precipice. A glance into Africa’s economic crystal ball for 2023 depicts a mixed bag of fortunes, with some economies set to flourish like a green bay tree, some will find themselves staring down the barrel of a recession whilst others will remain in the doldrums.

According to the International Monetary Fund (IMF), economic growth in Sub-Saharan Africa is expected to reach 3.7 percent in 2023.  Slowing global growth, higher external borrowing costs and weaker domestic currencies, are now the dominant factors weighing on Africa’s economies next year. In reiteration, the Economist Intelligence Unit (EIU) predicts that African economies will face turbulent times in 2023, as a range of internal and external shocks undermine growth prospects and threaten stability, but most of countries will…

  • Kenya’s next government will be required to work on new strategies to reduce the country’s over-reliance on debt
  • The country’s debt stock stood at KSh 8.6 trillion as of May 2022, equivalent to 69.1 per cent of the GDP and 19.1 per cent points above the IMF recommended threshold of 50 per cent for developing nations
  • The incoming government could bridge the deficit gap by instituting austerity measures, reducing amounts extended to recurrent expenditure and focusing on developments 

Kenya’s next government will be required to work on new strategies to reduce the country’s over-reliance on debt.

According to analysts from Cytonn Investments, the country’s debt stock stood at KSh 8.6 trillion as of May 2022, equivalent to 69.1 per cent of the GDP and 19.1 per cent points above the IMF recommended threshold of 50 per cent for developing nations.

According to the analysts, Kenya’s new president will need to …

In April 2022, the world’s biggest palm oil producer, Indonesia started implementing a full ban on the commodity’s exports risking upsetting the vegetable oils market. 

At the time of the implementation of the ban on April 28, vegetable oil prices were already at their highest. 

The reason for the ban was that cooking oil in the archipelago nation was in short supply and prices were going up. In several cities, people were waiting in line for hours at distribution centres to buy cooking oil at subsidised prices. 

Due to this, Southeast Asia's most populous nation had its authorities worried that the lack of supplies and rising prices could cause social unrest. This led to the import ban. 

Africa was also affected by this ban and Kenya was among the countries that started feeling this almost immediately. 

Kenya’s story with agricultural productivity goes way back to the end of the late

  • Kenya’s economy is expected to expand the fastest in 2022 despite this being an electioneering year
  • This is a much better performance than any other since the onset of the multiparty system 20 years ago
  • It is estimated and expected that the economy will grow by 5.4 per cent by the time we get to September 2022

Kenya Economy

A projection of global economists has suggested that Kenya’s economy is expected to expand the fastest in this electioneering year despite not knowing who will win the 2022 election in Kenya.

This growth is more than any other since the onset of the multiparty system 20 years ago shrugging off politics in Kenya 2022.

This increase, they say is supported by increased expenditure and also the need for more human resources to run campaigns with the introduction of features like social media campaigns which also is a way of collecting revenue.…

The second-hand clothing sector is an important contributor to Kenya’s economic growth and the continued demand for these clothes means that the government can continue collecting taxes.

East Africa’s economic hub is one of the largest importers of second-hand clothes, popularly known as mitumba, in the Sub-Saharan Africa (SSA) region for its use and also export to other countries. A report by the Institute of Economic Affairs (IEA Kenya) notes that demand drives the second-hand clothes market.

In 2019, Kenya imported 185,000 tonnes of second-hand clothes which is the equivalent of 8,000 containers. Between 2015 and 2018, the scale of wholesale trade of second-hand garments is estimated to involve 741,000 tonnes of used items.

Read: Local garment can meet great demand – Tanzania

The annual value of this trade was reported in 2019 to be on average Ksh 18 billion (US$180 million) which is less than 1 per cent …

President Uhuru Kenyatta and the county governments have agreed on a raft of Covid-19 response measures to be put in place ahead of the gradual re-opening of the country’s economy.

The measures according to a statement from the Presidential Strategic Communications Unit (PSCU), are aimed at safeguarding Kenyans against the adverse health and socioeconomic impacts of Covid-19.

Among the plans is the attainment of a national 30,500 isolation bed capacity within one month.

The third extra-ordinary session of the national and county governments’ co-ordination summit set the target of 300 isolation beds for each county so as to deal with the rising cases of infections, currently in 35 of the country’s 47 counties.

Also Read:President Uhuru Kenyatta’s plan to Eradicate Malaria in Africa

In addition to raising the isolation bed capacity, the meeting which was also attended by Deputy President Dr William Ruto tasked county governments to review their …

Stanchart released the outlook for the EAC three big economies – Uganda, Kenya and Tanzania.

According to the outlook report, the bank lowered Uganda growth forecasts to 6.0 per cent in 2020 and 6.2 per cent in 2021.

According to the report, although it is difficult to assess the full impact of the regional locust invasion, food prices have already been pressured due to flooding especially in eastern Uganda in December last year.

“We now expect the Bank of Uganda to keep its policy rate on hold at 9.0% throughout 2020 having previously seen scope for more easing,” said part of the report.

The report adds that they project the Bank Of Uganda (BoU) will adopt a tighter policy stand to control inflation given the 2021 elections and the rising caution over the extent of the government’s public financing requirement.
Stanchart’s chief economist for Africa and the Middle East, Razia …

Two contractors were yesterday charged before the Milimani Court Chief Magistrate Hon. Kennedy Cheruiyot with several counts of tax evasion amounting to KSh35.7 million ($0.345 million).

The two contractors; Yussuf Khalif Bulle and Abdirahim Osman Yarrow, both directors of El-Yumo Contractors Limited, jointly faced eleven counts which involve failure to pay taxes, falsifying accounts statements to reduce tax liability and failure to file tax returns all happening between 2014 and 2018.

According to a statement from the country’s revenue Authority, Kenya Revenue Authority (KRA), the accused, in their statements, deliberately failed to declare taxable income by filing nil returns and also failed to declare the correct amounts of taxable income to reduce Value Added Tax (VAT) liability for various years of income.

The two had been awarded contracts by the Judiciary and Kenya Urban Road Authority to construct Mandera Law Courts and routine maintenance of lot 5Y roads in Dandora …