Economy

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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Only time can tell whether gov’t efforts to tame biting cost of living and inflation will bear fruits

The cost of living in Kenya has escalated in the past few years due to a combination of factors such as the Covid-19 pandemic, changing weather patterns, drought and increase in the price of fertiliser and other agricultural inputs. Annual inflation in Kenya went above

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President Ruto clips CS Mutua wings in foreign policy shift

Kenya President Ruto clips CS Mutua wings in foreign policy shift President William Ruto’s government has announced a major shift in the country’s foreign policy by allowing other countries and their missions in Kenya to engage directly with ministries and state agencies, without going through

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Supplementary Estimates for FY 2022/2023: An overview

The Select Committee on Budget and Appropriations submitted the report on the Supplementary Estimates for FY 2022/2023. In the supplementary budget, requests for reallocations and additional allocations as well as expenses covered under Article 223 of the Constitution are submitted for approval by the Parliament.

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24th February 2023 Trade and Financial Services Round Up

Kenya  KRA chief Githii Mburu quits, board names Rispah Simiyu in acting role The Kenya Revenue Authority (KRA) Commissioner-General, Githii Mburu, has resigned after a three-year and seven month stint at the seat on the 30th floor of Nairobi’s Times Tower. Recently appointed KRA board

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An overview of the 2022 Tax Expenditure Report

The 2022 Tax Expenditure Report was released by the National Treasury with the goal of promoting data accessibility and transparency while providing information for tracking and analysing tax expenditures. Tax expenditures are utilised to accomplish particular policy goals by enacting targeted preferential tax measures that

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Inside Kenya’s Public Debt Dynamics and the Medium Term Debt Management Strategy (MTDS), 2023

  The “Why” of Debt Pre-cursorily, debt is indeed a double-edged sword. Wise and moderate use of the same, history has shown, results in improved welfare. Improper, imprudent and over-indulgence in debt, may end up being calamitous. On one hand, for households, individuals and private

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10th February 2023 County Round Up

Kilifi The County Government of Kilifi appoints members to the Kilifi County Budget and Economic Forum. The Governor also extends the period for the completion of the work of the Taskforce on Pending Bills Verification in Kilifi County Government by a period of sixty (60)

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Broken Kenya Kwanza promises: Impact of lifting price subsidies on cost of living and economic growth

Price subsidies are not long-term solutions to social protection. The Kenya Kwanza administration has been eliminating most of the subsidies that were introduced by former President Kenyatta’s administration such as electricity, fuel and maize price subsidies. President William Ruto’s administration’s rapid elimination of the price

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3rd February Trade and Financial Services Round Up

Kenya EPRA reveals second plan to increase cost of power The Water Resources and Management Authority (WARMA) is the latest State entity to seek a bigger pie of the electricity bills in what looks set to further increase the cost of power. WARMA has applied

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Explainer: What you need to know about Kenya’s Privatisation

Bill, 2023 At the core of national conversation lately is a proposed legislation seeking to govern the process of privatising state-owned companies and entities. The Privatisation Bill, 2023, which is at the public participation stage, seeks to streamline the regulatory and institutional framework for the

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A return of the politics of tax

Taxation in Kenya has taken a political twist in a week that saw President William Ruto train his guns on former President Uhuru Kenyatta and businesses associated with his family. Speaking a day after Azimio leader Raila Odinga held a rally at Jacaranda grounds, Ruto

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27th January 2023 Trade and Financial Services Round Up

Kenya Banks’ Sh224bn record profits signal bonus, dividends boom Banks’ pre-tax profits for 11 months to November last year hit a record Sh223.7 billion on increased lending, setting the stage for a dividend windfall for owners when full-year results are announced in March. Central Bank

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Meet Dr Fancy Too a new Board Member at KRA

Dr Too is the Director, Graduate Programs (LLM and LLD) at the Strathmore University Law School. She has also previously served as the Dean, Kabarak University Law School. In social service, Dr Too is the Chairperson of Kipteris Girls High School Board of Management. She

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20th January 2023 Trade and Financial Services Round Up

  Kenya   Users allowed to sue Safaricom over clients’ bank details access  The High Court has allowed millions of Safaricom subscribers to join a class action suit against the telecoms operator over a clause in the SIM card registration rules that allows the firm

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13th January Trade and Financial Services Round Up

Kenya State bursts recurrent budget forecast by Sh81.7bn President William Ruto’s administration projects expenditure for the day-to-day running of the government is Sh81.7 billion more than what the previous regime budgeted, pointing to piling spending pressures, including salaries and wages. The Treasury has forecast recurrent

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16th December 2022 Trade and Financial Services Round Up

Kenya KRA in dilemma over Ruto directive on seizing property The Kenya Revenue Authority (KRA) faces a legal dilemma in the wake of President William Ruto’s directive to the taxman to go slow on issuing distress orders that trigger asset seizures of suspected tax evaders.

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Small businesses and the digital economy: Addressing challenges to bridge the gap

The Center for International Private Enterprise (CIPE) released a policy brief on micro and small enterprises’ participation in Kenya’s digital economy. It explored challenges that MSEs face in the digital economy. The study considered four categories of digital technologies; that is connectivity; digitisation and automation

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2023 Economic Look Out

What will the New Year usher in, in emerging markets and in Kenya? From an economic perspective, the following is expected in emerging markets:   GDP Growth  Global economic experts appear to be in agreement that there will be an economic growth slowdown but it

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9th December 2022 Kenya Gazette

PUBLIC SECTOR Appointments: Cabinet Secretary for Interior and National Administration, Kithure Kindiki, has appointed: Silas K. Sachida, Masika M. Mukuyuni, Geoffrey Wanyoike, and Moses Mucheru Hopkins M. Hoyt to be fingerprint experts.   Cabinet Secretary for Lands, Public Works, Housing and Urban Development, Zachariah Njeru,

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9th December 2022 Trade and Financial Services Round Up

Kenya KRA starts crackdown on hidden employee perks The Kenya Revenue Authority (KRA) has started a crackdown on firms under-declaring their payrolls in what will see thousands of employees pay taxes on items like overtime, leave pay and per diems. The taxman is targeting a

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Enter Fractional Share Ownership in Kenya: What you need to know about fractional investing

Fractional shareholding allows a person to purchase a piece, or a fraction of a share.  For example, if one share costs KSh 500, a person could buy a proportion of that say for KSh 250 while another person buys the remainder for KSh 250. Each

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2nd December 2022 Trade and Financial Services Round Up

Kenya Equity’s takeover of Spire the best way out, says CBK Equity Bank’s plan to buy struggling Spire Bank is the best deal available in the market, the Central Bank of Kenya told Parliament yesterday. CBK governor Patrick Njoroge told MPs that the deal is

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25th Trade and Financial Services Round Up

Kenya Court stops law allowing workers to withdraw pension for home purchase A High Court has stopped the implementation of the Retirement Benefits (Mortgage Loans) (Amendment) Regulations, 2020 which allows workers to withdraw part of their pension to buy a home.  Justice Anthony Ndung’u said

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Banks to use Treasury bonds as loan collateral

As part of measures aimed at increasing industry liquidity and relieving the Central Bank of Kenya (CBK) from frequently having to bail out cash-strapped institutions, banks will soon be able to borrow from one another using government debt securities as collateral. The CBK implemented this

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e-governance: Paving the way to digital transformation

There are unique opportunities to use ICT for economic growth, productivity increase, and better service delivery.  According to the International Cooperation Development 2019 report on Guidelines and Roadmap for full deployment of e-governance systems in Africa, there are two critical elements of e-governance: digital elements

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Can Kenya Airways salvage its position and revert to a profitable path?

Kenya Airways (KQ) woes came to head this week with its pilots going on strike and bringing to a halt the operations of one of the largest airlines on the continent. It was not just passengers getting stranded, but the horticultural sector also reported losses

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 Ruto regime revamps housing project under Sanduku initiative to give Kenyans affordable houses

One of the fundamental social and economic rights is housing, which is established in our Constitution. During his inauguration as the fifth President of Kenya, Dr William Ruto, in his speech, outlined specific areas which are a priority for his administration in the next five

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Inflation Adjustment explainer

What is Adjustment for Inflation? The Excise Duty Act and Miscellaneous Fees and Levies Act provides for the Commissioner-General of the Kenya Revenue Authority, by Gazette Notice, to adjust the specific rate of excise duty every two years to take into account inflation. Recently, the

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Highlights of the 2022 Kenya Financial Sector Stability Report

The Central Bank of Kenya (CBK) recently released the 2021 Financial Stability Report which discusses developments and risks in Kenya’s economy and financial sector in the post-Covid–19 pandemic recovery phase, and details how the financial sector has remained resilient.  The report outlines some of the

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Fears of an impending global recession rife as world economies experience financial disruptions

World leaders assembled in Davos, Switzerland, for the 2022 World Economic Forum annual meeting against a backdrop of deepening global friction and uncertainties. It is against this backdrop that world leaders discussed the most pressing issues at the moment: Ukraine and the future of the

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Economic Survey 2022: A look at ICT sector performance during and after the pandemic

The Kenya National Bureau of Statistics (KNBS) recently released the Economic Survey 2022, detailing how various sectors and job markets performed and offered insight into the post Covid-19 recovery. Kenya’s economy rebounded in 2021 compared to 2020, with most sectors recording significant improvement. According to

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Treasury avoids tricky decision on long-term action on fuel

The good news from the Budget Statement was that fuel would be spared the proposed 10 per cent increase in Excise Duty that the Treasury has asked the National Assembly to impose on Kenyans when the Finance Bill is passed.  The bad news, according to

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Kenyans dig deeper into their pockets after fuel and LPG prices go up even as regulator seeks to control gas prices 

Rubis Energy recently released its reviewed prices of liquefied petroleum gas refills. Customers refilling a 13kg gas cylinder would have to part with Kshs 3,340 from the current price of Kshs 3,113 being an increase of over Kshs 200. Pricing of cooking gas is unregulated

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Kenya’s Policy Options for Steady Economic Growth during the Transition

Kenya’s economy has been on a path to recovery in 2021 following the easing of Covid-19 containment restrictions. As the economy rebounds, the country heads into an election year. Against this background, the Parliamentary Budget Office recently released the 13th edition of the Budget Options

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Kenya’s key economic strategies in 2022 Budget Policy Statement to spur recovery

Kenya’s economy has been on a path to recovery in 2021 following the slump in 2021 occasioned by the negative effects of the Covid-19 pandemic. It is against this recovery background that Kenya’s 2022 Budget Policy Statement (BPS) is based upon.  Kenya’s economy rebounded strongly

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The Senate Speaker’s Roundtable 2021. Economic Recovery During and Post Covid-19: Strategies and Opportunities in Building A Better Future Together

The KEPSA Senate Speaker’s Roundtable is a high level platform between the business community led by KEPSA and the Senate, to facilitate a joint review of the policy and legislative environment in the country, identifies crucial legislations to private sector that need to be reviewed

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Mashujaa Day Goodies: A Look at Uhuru’s Economic Stimulus Strategy

President Uhuru Kenyatta took advantage of Mashujaa Day celebrations on Wednesday, October 20, 2021, to announce a raft of economic measures and interventions his government seeks to make to reinvigorate the economy which is reeling from effects of the Covid-19 pandemic.  President Kenyatta announced a

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The Continent’s Inaugural Afraican Conference on Debt and Development (AfCoDD)

The African Forum and Network on Debt and Development (AFRODAD) in collaboration with its Pan-African Civil Society Organisations, and national and international partners, is organising an inaugural African Conference on Debt and Development (AfCoDD). The forum will be held on 25th– 27th August, 2021.  AfCoDD

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An Economic case for LGBT+ inclusion in Kenya

Countries that have successfully made the transition to high-value economies share common policies and traits. One of the most important and least discussed is that an open and inclusive society that creates a welcoming environment for investment, talent, and inclusive growth. In particular, LGBT+ inclusion

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Kenya Budget Statement FY 2021/2022 theme: Building back better: Strategy for resilient and sustainable economic recovery and inclusive growth

INTRODUCTION Aptly themed, this year’s Kshs. 3 Trillion budget aims to focus on economic recovery in the wake of the Covid19 Pandemic which has occasioned increased poverty and vulnerability levels across the country. In his speech, CS (Amb.) Ukur Yatani noted that the main focus

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Request for proposals on the Budget Statement FY 2021/2022

The Kenya National Treasury has invited members of the public to contribute to the final Budget Statement for the FY 2021/2022 which will be delivered in Parliament on 10th June, 2021. In this respect, the public is invited to share their proposals via email at:

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Part 2 on the BUDGET SERIES: Which way forward for Kenya’s economy? Highlights of Kenya’s economic outlook and proposed recommendations

The Kenyan economy is currently facing significant challenges as a result of the COVID-19 (C19) exacerbating an already grim situation. Despite having attained a lower middle income status in 2014, Kenya has failed to adequately address institutional and structural inadequacies that have continued to hinder

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Kenya National Budget Part 1: Building back better: Strategy for resilient and sustainable economic recovery

KENYA NATIONAL BUDGET The current state of engagement between the state and the public on matters related to budget allocations, expenditures, and actual service delivery outcomes is mostly focused on printed and actual figures and narratives already approved for execution. There is limited engagement at

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National Treasury request for comments on the Draft 2021 Budget Policy Statement for the MTEF FY 2021/22-2023/24 Budget

The National Treasury has finalized the Draft 2021 Budget Policy Statement for the MTEF FY 2021/22 -2023/24 budget which is available at the National Treasury website www.treasury.go.ke. and it invites comments on it.

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Treasury’s post COVID-19 economic recovery strategy

The National Treasury and Planning State Department for Planning this week presented highlights of a Post-Covid 19 economic recovery strategy (ERS) including: Macroeconomic Objectives of ERS Increasing diaspora remittances and investments from Kshs.280 billion 2020 to Kshs.500 billion per year; • Increasing private sector financing

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CS National Treasury remarks at MTEF hearings

In his key note at the opening of the opening of the public Hearings on the FY 2021/22 and the medium-term Budget proposals at the Kenyatta International Convention Center on 25th November 2020, CS Ukur Yatani addressed the public on various elements of financial planning

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Highlights of the first quarterly economic and budgetary review report in the 2020/21 FY

10.7%
Growth in broad money supply, M3, improved to 10.7
percent in the year to September 2020 compared to a
growth of 6.5 percent in the year to September 2019.

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Treasury’s take: Impact of Covid-19 on Kenya’s Economy

The outbreak of the Covid-19 pandemic in 2019 has caused the most severe global economic setback. Its impact to our economy includes:
-Loss of lives
-Decline in demand of Kenya’s goods and services,
-Job losses,
-Decline in household earnings,
-Heavy public expenditures towards health sector and social
protection,
-Decline in revenue due to subdued economic activities.
Kenya’s GDP is projected to decline to 2.5 % in 2020 compared to a growth of 5.8 % in 2019.

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In need of revival: The evening economy

As we walk the path to economic recovery, we need to work towards resuscitating the evening
economy while keeping safe.

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Digital Economy Strategy highlights

The Ministry of ICT (MoICT) has released the draft Digital Economy Strategy which focuses on six pillars

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