27th August 2021 Trade & Financial Services Round Up

  • 27 Aug 2021
  • 5 Mins Read
  • 〜 by Francis Monyango


The 2021 Budget Review and Outlook Paper

The 2021 Budget Review and Outlook Paper (BROP) has been prepared against a background

of expected global recovery after a  slump  in  2020  occasioned  by  the  negative  effects  of  the COVID-19 pandemic. The global economy is projected to grow by 6.0 percent in 2021, from a contraction of 3.2 percent in 2021.


The Kenyan economy is projected to recover from the negative impact of the Pandemic and attain a robust growth of 6.2 percent in FY 2021/22 and maintain a growth of above 6.0 percent over the medium term.  


The revenue performance gradually picked up at the beginning of November 2020 following the reopening of the economy and the reversal of tax relief measures that was implemented in January 2021.  Thus, total revenue collection including A-i-A amounted to Ksh 1,783.7 billion against the revised target of Ksh 1,837.8 billion reflecting a shortfall of Ksh 54.1  billion.  On  the  other  hand,  total  expenditure  and  net  lending  was  Ksh 2,754.9 billion against a target of Ksh 2,886.9 billion reflecting a shortfall of Ksh 131.9 billion.


The underspending is mainly due to the lower absorption of recurrent expenditure by Ksh 23.0

billion and development expenditure by Ksh  109.0  billion.  As a  result,  the  fiscal  deficit

(including grants) for FY  2020/21 was  Ksh  950.2  billion  (8.5  percent  of  GDP)  against  a targeted deficit of Ksh 976.2 billion (8.7 percent of GDP).

Source: Ministry of Finance, Planning and National Treasury 


State shakes up publicity of Uhuru legacy plans

The government has moved to improve supervision and publicity for President Uhuru Kenyatta’s legacy projects, reorganising its public communication and advertising teams and ordering ministries to make mandatory quarterly reports on the progress of projects under the Vision 2030 and Big Four agenda.


Head of Public Service Joseph Kinyua said all public reporting channels have been collapsed into a single unit comprising the Presidential Delivery Unit and the Kenya Vision 2030 Delivery Secretariat.

Source: Business Daily


Weaker shilling piles cost pressures on consumers

The shilling has weakened to a near five-month low against the US dollar, pressured by a faster growth in imports which has spurred a higher demand for the greenback than cash inflows from exports and Kenyans abroad.


Forex traders quoted the Kenyan currency at an average of 109.80 units against the US dollar on Thursday afternoon, marginally weaker than the 109.71 closings on Wednesday.


This was the weakest level since late March when it oscillated between 109.75 and 109.85 before appreciating slightly to a year-to-date high of 106.54 units on May 10 on expectations of loan inflows from the International Monetary Fund ($410 million or Sh45.02 billion) and the World Bank Group (Sh82.35 billion).

Source: Business Daily


UK keeps travel ban on Kenya amid tourism season

Travellers from Kenya remain banned from the United Kingdom in the latest update that took effect Thursday evening in a fresh blow for tourism which is currently in its main season.


The UK updated countries on England’s “Red List” amid concerns about the spread of new Covid-19 variants that have now been reported in Kenya.


Britain retained Kenya, whose cases of Covid-19 have been surging by double digits, on the travel ban first placed in April.


The decision deals a fresh blow to the Kenyan hospitality industry, whose tourism season traditionally peaks from July to September, coinciding with the country’s dry season and the world-renowned migration of wildebeest and zebra through Maasai Mara Game Reserve.

Source: Business Daily



Uganda Airlines to fly the A330neo to Nairobi this week

Following the successful addition of its pair of A330-800s to its Air Operator’s Certificate (AOC), Uganda Airlines is now embarking on marketing its new product across its network, according to a report by aviation website Airspace Africa.


This week on the 27 and 29th of August, travelers between Nairobi and Entebbe will have the opportunity to fly the carrier’s new wide body whose cabin features 20 full-flat, business-class beds, 28 premium-economy seats and 210 economy-class seats, totaling 258 seats.

Source: The Independent


Kasaija hails retirement benefits sector as it grows to 11.1% of GDP

The Minister of Finance, Planning and Economic Development, Matia Kasaija has lauded the Retirement Benefits Sector as key to Uganda’s economy because of the sector’s ability to mobilise national savings and enhance population productivity and wellbeing.


“The retirement benefits sector contributes significantly to the country’s gross domestic savings, which account for a big proportion of the Gross Domestic Product,”  Kasaija said. As of July 2021, the sector assets were worth Sh17 trillion.


The Minister said this today as he was releasing the 2020 Annual Sector Performance Report of the Retirement Benefits Sector at the Uganda Media Centre.

Source: The Independent



T-bills appetite up, yields down

The Treasury bills yields are predicted to drop further in this quarter as the appetite continues to increase since the beginning of this year.


The bills overall weighted average yields (WAY), according to NMB Bank quarterly Market Digest, shows a downward trend to stand at 4.65 per cent end of March lower than 5.83 per cent recorded in the previous quarter. “T-bill yields in Q3 [of this year] are anticipated to further drop,” NMB, one of the largest banks said.


The demand for 182 days and 365 days are on the upper side while for 35 days waned off and demand for 91 days showed signs of recovery.

Source: Daily News


Government to review revenue, expenditure system

The government has launched a Commission to review the government revenue and expenditure system that would help increase collection and create prudent spending.


The ten-member commission with expertise in economics, taxation, finance and spending systems has been given six months from now to complete the work and make recommendations that will support the improvements.

Source: Daily News


Informal money vending business turns lucrative

The Dar es Salaam’s informal street money sellers to commuter buses are reaping big as the business turns to be lucrative.


The business that involves giving change to Dar es Salaam commuter buses ‘dala dala’ is conducted against the law but going on unabated.


The money vendors, despite operating against the laws and regulations according to the central bank, have become a great help in supplying change to dala dala conductors who find it difficult to keep running to banks to obtain them.

Source: Daily News



Youth tipped on green innovations

Youths in the country have been called upon to join the efforts to innovate and create jobs in the green sector while at the same time solving environmental issues that are affecting the country.


Addressing the youth during the youth green knowledge exchange and exhibition event held in Kigali, Juliet Kabera, the Director General, Rwanda Environment Management Authority (REMA) said that the green sector offers countless opportunities and it is up to the youth to seize them.

Source: NewTimes 



Enhanced Investment to Reduce Stunting Saves 55.5 Billion Birr Annually: Pres. Sahlework

Investing the scarce resources on reducing stunting has a huge benefit of return for investment that can save 55.5 billion birr or 16 percent of the GDP annual loss, President Sahlework Zewde said.


The President made the remark today at the High-Level launching ceremony of the Food and Nutrition Strategy and Seqota Declaration Expansion Phase.


President Sahlework stated that investing in ensuring food nutrition and reducing stunting will significantly contribute towards realizing the country’s ten-year perspective development plan.


According to the president, enhanced investment on efforts to reduce stunting would help the nation save 55.5 billion birr annually.