Author: David Indeje

Kenya’s National Treasury Cabinet Secretary Ukur Yatani says the country’s economic growth is likely to grow by less than 2.5 percent this fiscal year. “Kenya’s economic growth is expected to decline to below 2.5 percent in 2020,” Yattani said in a circular to all cabinet secretaries on the guidelines for the preparation of the 2021/22 – 2023/24 medium-term budget. “Revenue collection is likely to be adversely affected by the poor business environment occasioned by Covid-19 pandemic,” he said. He exuded confidence that the economy would rebound to six percent in the medium term. Further, he indicated that the economic policy…

Toyota Kenya has partnered with NCBA Bank to offer flexible finance schemes for commercial and personal vehicle buyers.  The schemes include an up to 95 percent financing option with the purchase of Hilux single cab pickups, Hiace vans, and Toyota Rush to be paid within 60 months, and an extended repayment holiday at the outset of 90 days. Toyota Kenya Chief Operations Officer Mr Joshua Anya said, “Although this is not the first asset finance partnership we are getting into, the significance of this partnership with NCBA Bank is down to the fact that despite the tough operating environment, our…

President Uhuru Kenyatta’s cabinet on Thursday approved the establishment of a credit guarantee scheme targeting the Micro, Small, and Medium Enterprises (MSMEs)  with an initial seed capital of KSh10 billion. The capital will be disbursed in two tranches of KSh5 billion in the current financial year 2020/21 and Financial Year 2021/22. In addition, Development Finance Institutions and participating commercial financial institutions are expected to boost the funding for the scheme to at least KSh100 Billion.  The scheme is expected to be operationalized by mid-October, 2020.  In June, the National Treasury allocated KSh3 billion to the scheme. In addition, the Cabinet…

Africa Oil Corporation has been granted an extension for its oil exploration license on Blocks 10BB and 13T in the South Lokichar basin scheme by the Kenyan Government. In a statement, the company says under the terms of the extension, the Joint Venture partners have the right to extend the second exploration period for the 10BB and 13T licence blocks until 31 December 2020, with a further extension until 31 Dec 2021 contingent on an agreed work programme and budgets. “We strongly believe in the value of the Kenya development project and will be spending the next year on optimizing…

As the effects of COVID-19 continue to be felt with an uncertain future, members of the Kenya Association of Manufacturers (KAM) are contemplating a shift strategy to remain competitive. In collaboration with tax consultancy firm, KPMG, they have published a ‘Manufacturing resilience and sustainability strategy: Priority Policy Toolkit’ on how the sector will be in a position to better build business resilience plans and policies, prioritize their workers, monitor potential pain points, and implement measures to stay resilient during this crisis and beyond. The report emphasizes that going forward, the sector will need to focus on cost competitiveness and diversifying…

Kenya’s economy to grow at 1.5% in 2020 Renaissance Capital, a leading emerging and frontier markets investment bank, says the East African economy is expected to lead the Sub-Saharan Africa region in post-COVID-19 recovery.  Yvonne Mhango, Renaissance Capital, Sub-Saharan Economist, speaking at the 6th Annual Virtual East Africa Investor Conference, said “We expect the East African region to lead the recovery in Sub-Saharan Africa,” adding that “We expect the economies to be among the first to emerge from this crisis.”   According to Mhango, East Africa scores high in terms of resilience largely being attributed to key sectors, agriculture, tourism, global…