Trade and Manufacturing

Trade and Financial Services Round-Up

Kenya  IMF rescues Kenya from $2bn Eurobond scare The International Monetary Fund (IMF) has moved to rescue Kenya from plunging into a financial crisis after the global lender confirmed that it was mobilising funds to help the country repay its $2 billion Eurobond maturing in

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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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Progress in Kenya-US Bilateral trade talks: United States Trade Representative’s proposal on key agreement areas

As negotiations for a bilateral trade agreement between Kenya and the US under their Strategic Trade and Investment Partnership (STIP) continue, the United States Trade Representative (USTR) has released summaries of texts proposed on the areas covered by the agreement.  One of these, the Services

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KENYA M-Pesa deepens share in Safaricom revenue as voice stutters The share of M-Pesa in Safaricom mobile service revenue has deepened to 41.5 percent as earnings from voice and text messaging came under pressure from applications such as WhatsApp. Safaricom’s mobile service revenue in the

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Kenya should take action to control declining agricultural production and curb food imports

Kenya recorded a decline in the growth of the agricultural sector last year, on account of unfavourable weather conditions that led to a reduction in both crops and livestock performance. The production of maize in 2022 was 3,204,000 tonnes, which is a drop, compared to

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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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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 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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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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The Hustler Fund (Financial Inclusion Fund)

The Financial Inclusion Fund popularly known as the ‘Hustler Fund’ is a flagship project of the Kenya Kwanza Government which will be launched on November 30 to offer cheap loans to ‘Hustlers’. It will be disbursed technologically through an app so that the youth can

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Benefits of Kenya-South Africa bilateral trade agreements

Kenya and South Africa have enjoyed cordial relations since post-apartheid when resident diplomatic missions in Kenya and other countries were reopened. The cordial relations between the two countries were bolstered on 5 August, 2003, where the parties agreed to sign a Declaration of Intent on

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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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AGOA vs STIP: Which way for Kenya-US Trade Agreements?

The fate of the US-Kenya Strategic Trade and Investment Partnership (STIP) signed by the two countries in August this year is shrouded in a cloud. When regimes change, priorities also change. Under President Trump, Kenya started negotiating a bilateral Free Trade Agreement that would survive

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AfCFTA Guided Trade Initiative: How long before full African integration?

The Africa Continental Free Trade Area (AfCFTA) Guided Trade Initiative (GTI) is a temporary intervention of the AfCFTA secretariat that rolled out last week on Friday, October 7, 2022, on the fringes of the 10th Council of Ministers meeting held in Ghana. The initiative nudged

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What next after Ruto reverts operations to Mombasa Port from SGR and Naivasha dry port?

Traders and transporters who were disadvantaged by the Standard Gauge Railway (SGR)  and Naivasha dry port, can now smile after President William Ruto reverted most operations to the Mombasa Port. President Kenyatta had ordered that most cargo landing in Mombasa be ferried to Naivasha for

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Kenya-Dubai port deal: The question of missing public participation and litigation risks

Background The alleged Kenya port and Dubai Port World FZE (“DP World”) deal has caused an uproar among Kenyans and particularly leaders from the Kenya Kwanza coalition. The Kenya Kwanza leaders have alleged that President Uhuru Kenyatta appointed DP World, acting on behalf of the

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Barriers to digital foreign trade in Kenya: A US perspective

The 2022 National Trade Estimate Report on Foreign Trade Barriers (NTE) is the 37th version in an annual series that highlights significant foreign barriers to US exports, US foreign direct investment, and US electronic commerce. The NTE Report identifies significant barriers, regardless of whether they

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Scrap metal ban and the need to crack the whip on critical infrastructure vandalism

President Uhuru Kenyatta has banned any exports or dealings in scrap metal. The Head of State cited increased vandalism of government infrastructure which he described as economic sabotage. He added that tough action would be taken against anyone found culpable of vandalism. This comes days

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BPS and Trade sector – General Economic and Commercial Affairs(GECA)

In the MTEF period 2017/18-2019/20, the total approved budget for the sector’s programmes and sub programmes was 78.9 Billion Ksh, while the actual expenditure was 66.47 Billion Ksh.
This represented 84.6% absorption level.

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A highlight of the Joint Venture guidelines

Background A joint venture (JV) enables companies to join forces in order to achieve goals such as expanding markets and lowering the costs of production. However, JVs or collaborations among competitors raises potential competition law issues. Competitors may join forces in order to accomplish procompetitive

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Race to compliance: Beneficial ownership registration

The Beneficial
Owner is also
required to indicate
the source of
the beneficial
and whether
the information
obtained was (a)
provided by the
beneficial owner
or their authorised
(b) taken from an
official register;
or (c) provided by
a third party not
directly related
to the beneficial

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Private Sector Engagement in the Africa Continental Free Trade Area (AfCFTA)

The World’s largest Free Trade Area is finally here with us covering a market of 1.27bn people with a combined GDP of 3.4 trillion US dollars. The region does enter the agreement with great momentum around trade: Exports have grown by nearly a factor of

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FTA Series – Part 6 : Kenya concludes its negotiations with the UK

With the United Kingdom (UK) set to conclude its exit from the European Union (EU) at the end of December, 2020 it has decided to enter into a bilateral agreement with Kenya. On Tuesday 08th December, 2020, the two countries formally signed a trade agreement ending an

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KRA Commissioner General elected as member of ATAF executive arm

The Commissioner General of the Kenya Revenue Authority was nominated as a Member of the Governing Council of the Africa Tax Administration Forum (ATAF). He was voted during the ATAF General Assembly meeting held 4th November, 2020 by 13 member states, accounting for the highest

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FTA Series – Part 5: Impact of US-KE FTA on agriculture

It’s impossible to overstate how much Congress cares about agriculture – US agriculture is very productive, and we now want to work out how to sell it.” – A Senior USTR Adviser, 2020

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ICDC gets a new lease of life: A sovereign wealth fund in the making?

Earlier today through Executive Order number 5 of 2020 the President promulgated the new framework for the management, co-ordination and integration of public port, rail and pipeline services via the newly constituted Kenya Transport and Logistics Network (KTLN) which shall be coordinated by the Industrial

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It is estimated that the ban on consumption of alcohol in restaurants and eateries as well as the closure of bars will lead to a supply chain losses estimated at well over Kes. 10Billion and will lead to close to 60,000 job losses. This is

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