Economy

Who is Who: Meet Raimond Molenje, the new Acting CEO of Kenya Bankers Association

Mr Molenje joined the Kenya Bankers Association in 2018 and has 19 years of experience in legal and regulatory practice, human capital, and policy advocacy, having held senior management roles in leading business member organisations. Until his appointment, Raimond served as the Director of Legal,

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Kenya joins the Egmont Group: Implications on businesses and the war against money laundering and terrorism financing

Kenya has recently been under increased spotlight, particularly on the money laundering and terrorism financing (ML/TF) front. The Financial Action Task Force (FATF) recently put Kenya on the heightened watch list, often referred to as the “grey list,” citing deficiencies in its anti-money laundering and

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AfCFTA Digital Trade Protocol: A review of the key to overcoming barriers to intra-Africa digital trade.

Digital trade, defined as digitally enabled transactions for the trade of goods and services, is reshaping the global economy and the regional economy is not exempted. Its impact on growth, development, and job creation is powerful, especially among the youth. It has the potential to

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National Building Code 2024: Revolutionising Kenya’s construction sector for world-class digital infrastructure and economic growth.

In a landmark move set to redefine Kenya’s urban landscape, the Cabinet Secretary for Lands, Public Works, Housing, and Urban Development has unveiled the much-anticipated National Building Code 2024. Published in the Kenya Gazette Supplement No. 36 on February 20th, 2024, this comprehensive code is

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Ending monopoly to curb frequent power outages: Further review of the new energy regulations.

In last week’s Vellum, we covered the draft Energy (Electricity Market, Bulk Supply and Open Access) Regulations, which opened access to the entire value chain of the electricity grid to anyone interested in selling electricity in the country. This effectively ends Kenya Power and Kenya

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FKE slams PSRA for unilateral actions impacting jobs and contracts

The Private Security Regulatory Authority (PSRA) in February 2024 released a Legal Notice notifying the general public of a list of 726 registered and licensed corporate private security service providers in Kenya as of 5th February 2024. Nine private security companies not on the list

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Simplifying tax compliance: How small businesses can join the eTIMS bandwagon.

In a groundbreaking move aimed at revolutionising tax collection, the Kenya Revenue Authority (KRA) has introduced the electronic Tax Invoice Management System (eTIMS), mandating all businesses to electronically generate and transmit their invoices. This initiative includes businesses in the informal sector and small businesses, emphasising

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New energy regulations set to open Kenya’s electricity market to competition and investment. 

One of the biggest problems the electricity market has faced in Kenya has been the monopoly over the transmission and distribution of electricity in the country by two state agencies. Transmission and operation of the transmission infrastructure are done by the Kenya Electricity Transmission Company

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Kenyan banking sector balances strong profits with sovereign exposure challenges

Fitch Ratings recently conducted a peer review, where they assessed the creditworthiness of three bank holding companies – KCB Group PLC, NCBA Group PLC, and I&M Group Plc – along with their Kenyan banking subsidiaries and Stanbic Bank Kenya Limited. The rating given to these

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Trade and Financial Services Round-Up 

Kenya Puzzle of counties running 1,400 illegal bank accounts County governments are operating more than 1,400 accounts in Kenyan commercial banks, in breach of the law that requires them to hold their cash at the Central Bank of Kenya (CBK). The Controller of Budget has

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SAMA hosts President Ruto, Ethiopia’s PM to discuss Kenya’s digital transformation 

On Tuesday this week,  SAMA AI was host to Kenya’s President William Samoei Ruto and Ethiopia’s Prime Minister Abiy Ahmed, alongside Kenya’s Cabinet Secretary for Information, Communications, and the Digital Economy, Eliud Owalo, Kenya’s Principal State Department Secretary of ICT and the Digital Economy, Eng.

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An analysis of foreign competition regulations in comparison to the COMESA regulations. 

Competition law comprises a set of legal rules which aim to control the socially harmful exercise of private market power, whether through hardcore cartels, single-firm monopolies, or mergers that reduce structural competition. This is a discipline that has undergone a remarkable process of expansion in

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Shaping global environmental policy to tackle climate change, in light of UNEA

The recent conclusion of the sixth United Nations Environment Assembly (UNEA-6) in Nairobi, Kenya, has underscored the urgency of shaping global environmental policy to combat the escalating climate crisis. As the world’s foremost decision-making body on environmental matters, UNEA-6 served as a vital forum for

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Re-thinking the FATF Approach: Assessing the Effectiveness of the Listing Model as Kenya navigates the “Grey List”

  Background Kenya is, once again, on the international financial market radar, not for Eurobond reasons but this time round for money laundering and terrorism financing (ML/FT). The Financial Action Task Force (FATF) placed Kenya on the ‘grey list’ – putting the country under increased monitoring

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Trade and Financial Services Round-Up.

KENYA World Bank, IMF charging Kenya 14.5pc interest — CoB Controller of Budget Margaret Nyakang’o has flagged the cost of concessional loans taken up by the government over the years from lenders such as the International Monetary Fund (IMF) and the World Bank, saying they

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ESG Integration: A game-changer in investment strategies for resilient, sustainable returns

In recent years, Environmental, Social, and Governance (ESG) considerations have emerged as critical factors reshaping the investment landscape. Investors are increasingly recognising that sustainable business practices, ethical conduct, and responsible governance are not only beneficial for society and the environment but also essential for long-term

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The power of fairness: The currency for success in corporate culture and economic transaction.

Fairness is a fundamental aspect of human behaviour that goes beyond simple transactional interactions. From psychological experiments to legal rulings and corporate governance, the concept of fairness influences decision-making in various spheres of life, including corporate. Fairness plays a crucial role not only in personal

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2024 Medium-Term Debt Management Strategy analysis

The Medium-Term Debt Management Strategy (MTDS) is an annual policy document written by the National Treasury to guide government borrowing and debt management. The 2024 document prepared in January 2024 has figures up to June 2023, while the Second Quarterly Economic and Budget Review (QEBR)

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Navigating the complexities of encryption: Striking the balance between privacy and security in the digital age

In an increasingly digital world, the protection of privacy and the maintenance of security have become paramount concerns. The passage of the UK Online Safety Act highlights the ongoing struggle to strike a balance between combating illegal online activities and safeguarding individual freedoms. The UK

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The making of a national budget: Kenya’s budget cycle timeline

Kenya’s financial cycle relies on the budget process, which begins with the budget-making process. The budget process is guided by the budget calendar issued by the National Treasury and Economic Planning ministry, which stipulates timelines for several key activities to be undertaken to finalise the

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Kenya’s fiscal landscape: A Review of the 2024 Budget Policy Statement and its implications on businesses

Background The Budget Policy Statement (BPS) is a government policy document that sets out the broad strategic priorities and policy goals to guide the National Government and County Governments in preparing their budgets for the subsequent financial year and over the medium term. This is

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Corporations in Kenya join govt in the ambitious plan to plant 15 billion trees.

Responding to the urgent global call for environmental protection and sustainability, Kenya has made a bold move to plant an unprecedented 15 billion trees. Aimed at mitigating climate change, increasing biodiversity and enhancing environmental resilience, this ambitious effort reaffirms the nation’s commitment to environmental stewardship

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You can run, but you can’t hide: As Kenya adopts CRS, calls for balancing tax transparency with data privacy concerns emerge.

Kenyan commercial banks have started implementing the Common Reporting Standards (CRS), a tax procedures regulation of 2023. This regulation requires all Kenyan banks, trusts, and other financial institutions to report and share information about foreign account holders with the Kenya Revenue Authority (KRA) as the

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CBK agriculture survey: Sector shows resilience, expects price decline despite challenges.

The Central Bank of Kenya released the Agriculture Sector Survey for January 2024,  highlighting the sector’s significant contribution to the country’s economy. Accounting for an estimated 33% of the GDP, agriculture serves as the backbone of Kenya, playing a vital role in generating foreign exchange

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Insights from the National Assembly report on the Affordable Housing Bill, 2023.

The Parliamentary Budget Office (PBO) in January 2024 published a financial and economic analysis of the Affordable Housing Bill, 2023 (the Bill). The PBO in its analysis raised several issues and concerns on the potential implementation of the Bill in the event it was assented

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Navigating Voluntary Tax Disclosure Programmes: A Guide for Businesses.

In the dynamic landscape of taxation, businesses often find themselves grappling with complex tax compliance requirements. In response to this challenge, tax authorities around the world have introduced voluntary tax disclosure programmes (VTDPs) to incentivise taxpayers to come clean about previously undisclosed tax liabilities. These

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CBK surveys point to optimism despite inflationary pressures: MPC raises interest rates.

The Central Bank of Kenya (CBK) conducts a Market Perceptions Survey before each Monetary Policy Committee (MPC) meeting to gather insights from banks and non-bank private sector firms regarding various economic indicators such as inflation, economic growth, credit demand, and exchange rates. The survey aims

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Driving compliance in Kenya: Public and private sectors should collaborate to navigate low compliance levels.

Compliance is a critical imperative for both the public and private sectors, although the nuances of implementation vary significantly between them. The distinct approaches taken by both sectors are largely influenced by the inherent differences in organisational structures, objectives, and accountability mechanisms. The differences notwithstanding,

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Kenya’s Eurobond return exceeds expectations, eases debt repayment concerns.

On February 7, the Kenyan government made an offer to partially repurchase its existing Eurobond, which is maturing on June 24, 2024, at par, including payment of accrued interest. Additionally, the government announced its intention to issue a new bond in the market.    The

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President Ruto’s Japan visit Sh350bn deals, powering Kenya’s economic revival

President Ruto’s visit to Japan earlier this week led to the signing of agreements worth Kshs 350 billion. A giant share of the money will go towards key projects and programmes crucial for Kenya’s economic revival. Notably, the Dongo Kundu Infrastructure Ecosystem and the Mombasa

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AfCFTA competition protocol: Balancing opportunities and challenges for digital platforms in Africa

The vision of a united Africa is realised through the establishment of the Africa Continental Free Trade Area (AfCFTA), the world’s largest Free Trade Area (FTA), encompassing 55 countries and representing all African Union (AU) member states. The practical implementation of the AfCFTA has the

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Ukrainian delegation visits Kenya: Kyiv actively pursues business and diplomatic relations with Nairobi amid ongoing conflict

The Republic of Ukraine, despite the ongoing conflict, is actively seeking diplomatic partnerships and building relationships with Kenya. A delegation from Ukraine was in the country recently to meet various government officials and Members of Parliament to discuss areas of interest. Such sectors of interest

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 Bridging the revenue deficit: Kenya’s quest to explore diverse international markets

Kenya’s economy was hit by global shocks, including the COVID-19 pandemic and geo-political issues, such as the Ukraine-Russia conflict, over the past two years. This has been exacerbated by the ballooning debt obligations owing to the downward trajectory of the shilling against the dollar. As

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Kenyan shilling expected to continue free fall against the dollar through 2024, prompting urgent action

The Kenyan shilling’s free fall against the dollar and major currencies is expected to continue for the better part of 2024, as the local currency officially crossed the 160-unit points against the US dollar on January 15.  This suggests that President William Ruto’s administration has

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Trade and Financial Services Round-Up.

KENYA UK and Kenya in fierce tax fight The United Kingdom has made an official complaint over the higher import duty Kenya charged on some of its products, a senior government official has revealed. In line with the East Africa Community (EAC) Customs Union, Kenya

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PSRA’s solo move to impose minimum wage on security firms sparks legal challenges and ministry disapproval

The Private Security Regulatory Authority (PSRA) in November 2023 released a Legal Notice which set the minimum wage for private security officers at Kshs.30,000 per month. While this was a move that was highly welcomed by the private security guards in the country, their employers

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Kenya’s economic landscape in 2024: Report reveals resilient growth trajectory amidst adversities necessitating balance

A macro-fiscal analytic snapshot has been given in a joint report by IPF Kenya and Oxford Policy Management. It reveals a resilient growth trajectory amidst adversities. We delve into the key messages outlined in the report, exploring the nuanced impact on poverty, inflation, debt, fiscal

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When policies do more harm than good: Unpacking the impact of regulatory changes in the face of EABL’s profit  decline

The release of East African Breweries Limited’s (EABL) half-year results has sparked debate on the adverse impacts of regulatory and policy changes on the business environment. EABL’s profit after tax declined by 22 per cent to Kshs 6.8 billion, a downturn attributed to macroeconomic-driven cost

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Kenya’s economic struggles: The IMF-backed reforms, fuel subsidy controversy and the road ahead

At present, Kenya is grappling with multiple challenges compounded by global conditions impacting economic activities and leading to tightened financial conditions.  The Kenyan economy is facing multiple challenges as it tries to recover from a prolonged drought and El Nino effects. These challenges include volatility

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Ethiopia-Somaliland agreement sparks tensions over sovereignty, trade, and territorial disputes in the Horn of Africa

Ethiopia’s agreement with breakaway region Somaliland, seeking port access in exchange for potential sovereignty recognition, could cause upheaval in the Horn of Africa. Somalia views it as an attack on its sovereignty, considering Somaliland is just a de facto country and has called upon the

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IGAD navigates turbulent geopolitics: Oil dispute, diplomatic tensions, and Sudan’s exit introduce uncertainties for the region

At first glance, the 42nd Extraordinary Assembly of the IGAD (Intergovernmental Authority for Development) Heads of State and Government held on 18th January 2023, appeared to be a productive meeting. From the released communiqué, the Heads of State reaffirmed their commitment to work together in

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Preparing business for El-Niño by mitigating risks and ensuring resilience

El Niño is a natural climate phenomenon marked by warmer-than-average sea surface temperatures in the central and eastern Pacific Ocean near the equator, which occurs on average every 2-7 years. The higher-than-average sea surface temperatures over the Pacific Ocean alter the normal rainfall patterns of

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Kenya’s Treasury Single Account: The move to consolidate govt finances and the impact on commercial banks

The recent approval by the Cabinet on 15th January 2024 to implement the Treasury Single Account (TSA) sets the stage for the consolidation of government finances in Kenya. Government funds have traditionally been spread across numerous bank accounts under the names of various government MDAs.

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Trade and Financial Services Round-Up

KENYA Shilling falls to a new low of Sh160 to the dollar The shilling’s official exchange rate has hit Sh160.23 to the dollar, extending its record decline against the US currency on the back of pressure from importer demand and efforts by the Central Bank

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 IMF-GoK negotiations: Review unveils progress and challenges from tax measures to state-owned enterprises

During the IMF-Treasury discussions, a review highlighted several met structural benchmarks, with the exception of the qualitative performance criteria for tax collection. However, the deviation observed was smaller than initially anticipated at the time of the reviews. In the wake of December, authorities submitted to

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Business landscape 2024: Key measures for corporate compliance in the new year amidst evolving challenges

Since a majority of the world’s economic activity is conducted through corporations, their impact on society is significant. As such, potential corporate misconduct poses a significant threat to social welfare. History has shown that imprudent and irresponsible corporate behaviour and action have a far-reaching impact

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Kenya-Uganda trade standoff: Legal battle after denied licence and concerns over fuel import crisis

According to trade statistics from 2021, Uganda is a major destination for Kenyan exports, making it a crucial trading partner. As a landlocked country, Uganda heavily relies on Kenya and Tanzania to access goods that arrive via sea. It, therefore, came as a surprise that

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Jamhuri Day – KENYA @ 60:Reflecting how far we have come and charting the path forward

Kenya’s history and struggle for independence from British colonizers are woven into the fabric of Nairobi. The country was given a new start when Prince Philip, husband of Queen Elizabeth II, formally handed over power on December 12, 1963, thereafter, known as Jamhuri Day —

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Somalia’s integration and new leadership catalyst for EAC strategic trade shift

Recent developments within the East African Community (EAC) include the election of South Sudan President Salva Kiir as the chairman of the EAC and the acceptance of Somalia as part of its regional organisation. This decision, long-awaited but not without its challenges, brings both opportunities

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Key legislative and regulatory policies set to shape Kenya in 2024

The year 2023 saw the introduction of several legislative and regulatory updates in Kenya. Notably, as the year ends, various notable legislative and regulatory policies and strategies are scheduled to be implemented in the coming year.  Implementation of these proposed changes in law will likely

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Significant moments of the year that was 2023

While ushering in the new year at State House in Mombasa on January 1, President William Ruto said his government was committed to sustainably driving the economy in 2023. The President said he had taken time to lay a foundation during his first days in

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Trade and Financial Services Round-Up

KENYA   Stanbic lowers ESG loan screening threshold to Sh50m   Stanbic Bank Kenya will from next month start screening loans of Sh50 million and above for environmental, social and governance (ESG) compliance, tightening the sustainability threshold which currently starts at Sh300 million.   The

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Green energy revolution: Macro-economic effects, power struggles and winners in the changing landscape of energy economics.

Economic power affects every state and industry in defining manners. Economic power is the access to wealth, natural renewable resources, monopoly powers and/or superior technology. The current global initiative towards climate change threatens to cause a shift in economic powers and strengths, particularly concerning access

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Driving growth: Government leasing program fuels Kenya’s automotive sector

In 2013, the government introduced the leasing program for official government transport, a groundbreaking initiative aimed at providing efficient and cost-effective transport solutions for various government departments. Now in its 7th phase, the program has not only transformed the government’s transport operations but has also

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COP 28 Climate Talks: The imperative role of the banking sector in addressing climate change and nurturing a greener future

The forthcoming 2023 United Nations Climate Change Conference more commonly known as COP28, scheduled for the end of this month in Dubai, demands special attention. We must reflect on the key takeaways from last year’s round of global climate talks to see the progress being

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Fintechs making strategic moves: What the vertical integration portends for the financial landscape in Kenya?

The news this week in the banking and fintech world has been the acquisition of Choice Microfinance Bank by Chinese Investor Robin Duah Wei. Wei’s acquisition is interesting because he not only owns a digital advertising company but also mobile digital lenders in Kenya and

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Kenya’s debt situation: Economist Ndii sheds light on looming crisis and mitigation efforts

Seven months before the maturity of the 2024 Eurobond, Kenya’s debt situation has been likened to a “patient in an intensive care unit” where extensive efforts are being made to restore good health, but the situation remains a matter of life and death.  In a

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Tax education should complement automation of revenue systems to enforce compliance

For a country to attain its developmental goals, it has to generate revenue to fund these goals. A significant portion of a country’s revenue is generated through taxation. Despite the crucial role taxation plays in a country, issues of non-compliance persist and remain a pressing

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Significant Political Sentiment – Kenya explores new infrastructure financing opportunities with Beijing

On Wednesday, October 18, China’s President Xi Jinping held a meeting with President William Ruto who was in China to attend the third Belt and Road Forum for International Cooperation.  This was his maiden trip to China, a visit which was keenly watched by diplomatic

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Assessing the Feasibility of Kenya’s Proposed Unemployment Insurance Fund

Kenya is currently grappling with a challenging economic landscape characterised by a high cost of living, and the recent introduction of a housing levy has added to the financial burdens of employers and employees. Amid these economic challenges, the Unemployment Insurance Authority Bill, sponsored by

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US-Kenya business roadshow: Driving investments in apparel, agriculture and technology

The US-Kenya Business Roadshow is organised by the American government’s Prosper Africa initiative in collaboration with the US Embassy in Kenya. The event is centred around exploring business and investment opportunities within the apparel, agri-business, and technology sectors. This event spanned multiple cities: New York

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AU’s G20 membership: Implications for the African economy

G20 is a premier intergovernmental forum aimed at international economic cooperation that acts as a tool to shape and strengthen global architecture and governance on impactful international economic issues. With a rotating regional presidency of the forum among its members, G20 was founded in 1999

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Budgetary process: Exploring the role and effectiveness of Sector Working Groups

Prof. Njuguna Ndung’u, the Cabinet Secretary, National Treasury, set in motion the budget process for the financial year 2024/2025 on 18th August 2023, when he launched the Medium-Term Budget Preparation process. During the launch, Prof. Ndung’u indicated that sector working groups needed to begin their

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Budget Process: The ball is already rolling for big decisions in the 2024/2025 financial year

The budget-making process is an ongoing exercise characterised by strict timelines mandated by the Constitution and the Public Finance Management Act, 2012. The National Treasury on August 18, 2023, launched the  preparation of the FY 2024/25 and the medium term budget through the formation of 

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Rethinking the Nighttime Economy; Is Closure of Bars really the Solution?

Growth of the nighttime economy is integral to the overall growth of the economy. Growth of nighttime visitations in urban areas is precipitated by the blend of retail, commercial, industrial, residential, institutional, and recreational activities. Some of the places that host these nighttime activities include

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BRICS and the difficult goal of dedollarisation

On Monday, this week, a three-day meeting for heads of state of the 40-member nations of BRICs kicked off in South Africa. This is the 15th such annual summit to be held, but this time it centred on the topic of Africa in relation to

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Devolution Conference: County Assemblies’ financial autonomy a welcome move

County Assemblies are inching closer to financial autonomy after the devolution conference rooted for their independence in order to strengthen their oversight role on county executives. Last week, senior state officials who attended the devolution conference at the Eldoret Sports Club in Uasin Gishu County,

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Kenya Weekly Market Wrap

  “In contrast to the previous week, all the benchmark indices closed in the green. The NSE 20 led the winning charge, notching 1.0% higher w/w on the price gain of most large caps as the NASI and NSE 25 regained 0.8%w/w and 0.7%w/w respectively.”

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Elevating competitive edge through compliance: Key findings from the 2023 Global Compliance Risk Benchmarking Survey

  As our world undergoes rapid and dynamic transformation, the momentum behind the regulation of businesses shows no signs of waning. Suffice it to say, due to the fast-paced and interconnected nature of modern-day business terrain, the fundamental place of compliance cannot be downplayed. Consequently,

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Mindful consumption: Embracing ethical consumerism to strengthen sustainability in Kenya

Ethical consumerism, a growing global movement, represents a deliberate effort by individuals to make purchasing decisions that prioritise social, environmental, and ethical concerns. It involves supporting products and services that align with personal values, such as fair trade, environmental sustainability, and respect for human rights.

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Combating money laundering: Setting the Criminal Assets Recovery Fund in motion will tighten the noose around the vice

The effect money laundering has on a country’s economy is both severe and extensive. Not only does it impact businesses and the economic health of a county but also has far-reaching implications for the financial sector, a critical component of a country’s economic growth and

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Decoding Kenya’s debt dilemma: A comprehensive primer on the nation’s financial landscape

In order to understand Kenya’s debt, it is important to know who Kenya is borrowing from. The source of a country’s debt can be external or internal. Internal debt is usually from the central bank, commercial banks or non financial institutions. This debt is usually

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Calls for implementation and enhancement of AfCFTA to enhance growth and development at AU meeting

  Last week, the 5th Mid-Year Coordination Meeting (MYCM) was held at the United Nations African headquarters in Gigiri, Nairobi. The Summit witnessed a remarkable gathering of 51 foreign ministers from the African Union (AU) member states, accompanied by 15 heads of states and an

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G2G oil deal: Govt pursues renegotiation of the agreement With UAE and Saudi Arabia

In March, the government announced that it would start importing diesel, super petrol and jet fuel on credit in a deal meant to ease demand for the dollar and prop up the shilling. This is an import arrangement between the Kenyan government and the governments

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Edible oils manufacturers seek government support for sustainable growth

The edible oil manufacturing sub-sector of the Kenya Association of Manufacturers, last week (3 July) released a statement urging government support for its continued growth. Through a new initiative dubbed ‘the Agriculture for Industry (A4I) Initiative’ the sector called for a collaboration with national and

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Comprehensive analysis of the delayed National Automotive Policy

The motor vehicle industry in Kenya peaked in the 1980s with the local production of the Nyayo Car being a highlight. However, the liberalisation of the economy negatively impacted the growth of this industry with the introduction of imported second-hand car parts. The National Automotive

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What the conservatory orders on the Finance Act mean to Kenya’s medium-term strategy, 2023

The High Court on Friday, June 30, issued orders suspending the further implementation of the new Finance Act, 2023. The case was filed by Busia Senator Okiya Omtata who argued that the Act is illegal as it was approved by the National Assembly without the

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James Mworia’s interview: Centum Investments and designation of Two Rivers as SEZ

The Centum Investment company is listed on the Nairobi Securities Exchange and the Uganda Securities Exchange. It is a diversified portfolio with assets of about Ksh 50 billion and debt of about Ksh 2 billion.  Since its inception in 1967, Centum Investments has been able

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Exploring the emerging jurisprudence on the mandate of the CBK

A few moons ago, the Central Bank of Kenya released its inaugural handbook on emerging jurisprudence touching on its mandate. The digest delves into various cases that have been before our local courts which affect the core of CBK’s being. The ongoing development of court

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An analysis of the trade deal between Kenya and the EU

On Monday, 19th June 2023, President William Ruto oversaw the political conclusion of the negotiations for the Economic Partnership Agreement (EPA) between Kenya and the European Union (EU). The negotiations were spearheaded by European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and Cabinet

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Unleashing potential: Africa Business Council’s drive to boost private sector participation in government procurement

The African Business Council has taken a bold step in pursuit of economic growth and empowering local businesses. The council is championing a game-changing initiative that calls for 40% of all government procurements across the 55 African countries to be allocated to the African private

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Assessing budget transparency: Does your county disclose essential fiscal information?

Twelve years after the onset of devolution in Kenya, significant progress has been made towards citizens’ access to county governments’ public budget information.  To achieve the goals of devolution, the Constitution gave county governments powers to raise, receive, allocate and spend public funds in a

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Let’s propel Kenya to the top of the global superfood exporters’ table

The global trade agenda is changing quickly from where product and price dominated the conversation to a more holistic approach where a company’s values and purpose in today’s world are intertwined, and quite correctly, a big part of the decision to purchase products.  In the

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Kenya’s Economic Position: Supply-side responses to our economic interventions will underpin the path to sustainable economic recovery

  Moody’s has downgraded Kenya’s long-term foreign-currency and local currency issuer ratings and senior unsecured debt ratings from B2 to B3 on rising liquidity risks. The Government wishes to make the following points: Kenya’s economy has remained resilient, growing at 4.8 percent in 2022 compared

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Analysing the government’s justification behind the Finance Bill

The Finance Bill 2023 proposes a raft of tax measures, some of which appear to have explored some uncharted territory. This is the first Bill under the new regime and it is grappling with several challenges. A good number of the proposals are aimed at

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Quarterly Economic and Budgetary Review: Analysis of 3rd Quarter FY2022/2023 (Ending March 31, 2023)

The National Treasury recently published the Third Quarter report for the financial year 2022/2023 per the provisions of the Public Finance Management Act, 2015. Below are some of the highlights of the Report.    Economic Growth   The report reveals that economic growth witnessed in

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Unveiling CBK governor nominee Kamau Thugge: Insights into his Background, Fiscal Policies, and Implications for Kenya

As Central Bank of Kenya governor Patrick Njoroge’s term comes to an end next month, the process to find his replacement has begun. On Monday, 15th May 2023, President William Ruto announced that he would nominate Dr. Kamau Thugge as his replacement. His Background Dr.

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Analyzing the Pros and Cons of Exchange Rate Fluctuation

In a recent visit to Kenya, IMF managing director Kristalina Georgieva held discussions with President Ruto and members of the Cabinet on possible policy recommendations concerning Kenya’s recovery from the exogenous economic shocks the country is experiencing. In a bid to address economic growth and

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Tax Appeals: Examining the Impact of ‘Pay to Play’ on Access to Justice and Cash Flow Constraints for MSMEs

‘Pay to play or pay to be played?’ Sections of the Finance Bill 2023 have caused a buzz amongst them the amendment of Section 32 of the Tax Appeals Tribunals Act to cause taxpayers who seek an appeal on the Tribunal’s decision at the High

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An analysis of the salient features of Economic Survey 2023

The Kenya National Bureau of Statistics (KNBS) recently published the Economic Survey 2023. Economic surveys are aimed at promoting a better understanding of the economic situation and key challenges facing the government and pointing towards ways of improving overall economic performance. Economic growth in 2022

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Unveiling the Economic Ramifications: The Impact of 16% VAT on Fuel and Fuel Products

The recent proposal to increase the Value Added Tax (VAT) imposed on petroleum from a rate of 8% to 16%, is bound to impact fuel prices and is poised to reverberate across various sectors of the economy. The VAT rate of 8% on petroleum products

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Finance Bill 2023: Is it the Breaking Point for Overburdened Kenyan Taxpayers?

The Finance Bill, 2023 which has got many tongues wagging across the country was tabled before the National Assembly on Thursday, May 4, 2023, by the National Treasury. The Bill proposes an array of tax changes geared towards expanding the tax base and raising revenue

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KNTC to go the duty-free shops’ way in low-income areas to provide basic commodities at lower prices

Kenyans who travel by air are familiar with the concept of duty-free shops. This is where one buys specific goods such as perfumes, cosmetics, tobacco and hard liquor at lower prices because import duty has not been charged in shops located in airports. The Kenya

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Main Feature: World Economic Outlook Report 2023: Insights into the rocky path to recovery

What is the IMF? The International Monetary Fund (IMF) was established in 1944 in the aftermath of the Great Depression in the 1930s. At the founding stage, the membership of the IMF comprised 44 member states. The membership has grown to a near-global status, with

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Highlights of the Finance Bill 2023: Tax changes and proposals by Kenya Kwanza government

The Finance Bill 2023 is the first fiscal legislative proposal under the Kenya Kwanza administration, aimed at implementing the Bottom Up Transformation Agenda. The Kenyan economy is expected to maintain a 6.1% growth rate over the medium term, with leading indicators showing strong performance in

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Kenyans yet to see fruits of govt efforts to tame skyrocketing commodity prices

Kenyans have decried the high cost of living as the prices of basic food commodities have gone up making it hard for them to sustain themselves. The government on the other hand has faulted the war in Ukraine as well as climate change saying that

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Debt-ridden Kenyan economy and the role of the Treasury and Economic Advisory Council

The state of Kenya’s economy is currently the subject of huge debate and focus, with the country facing a debt crisis.  In March, salaries of civil servants were delayed as the government prioritised paying off maturing debt. The two men in the eye of the

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Oil prices set to surge after producers announce plans to cut production

Prices for petroleum products are set to go up after the major oil producers announced plans to cut their production up to 1.15 million barrels per day from May until the end of 2023.  Saudi Arabia announced the biggest cut among Organization of the Petroleum

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Dollar shortage, consequences and how Kenya can cut impact of the currency in future

Kenya has been facing a dollar shortage since March last year. This is an acute foreign exchange crunch, with the US dollar reserves dropping to their lowest in eight years. The Kenyan currency keeps plummeting against major global currencies and according to the Central Bank

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Reawakening the circular economy discourse will edge Kenya toward sustainability

According to the World Bank (2021), Kenya is one of sub-Saharan Africa’s fastest developing economies. The Kenyan economy’s success has been bolstered by a stable macroeconomic environment, high investor confidence, and a resilient services sector. Furthermore, the country is proud of its market-based economy and

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