Author: David Indeje

Kenya’s private sector experienced a sharp downturn in July, according to the Stanbic Bank Kenya Purchasing Managers’ Index (PMI). The index plummeted to 43.1, signalling a significant contraction in business activity compared to the previous month’s 47.2. Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration. The decline was primarily attributed to widespread protests and political unrest, which disrupted operations, reduced new orders, and hampered output. While inflation eased, input costs continued to rise, squeezing profit margins. Despite challenges, companies increased employment, albeit at a slower pace “for the…

The 17th Kenya Internet Governance Forum (KeIGF) convened in August, ignited robust discussions on fostering a collaborative and inclusive digital landscape for the nation. Dr. Grace Githaiga, Convenor of KICTANet, underscored Kenya’s remarkable digital progress over the past two decades. Internet penetration has surged from a modest 3% in 2004 to a substantial 40.8% today, while mobile and smartphone adoption has soared. The ICT sector has emerged as a pivotal economic driver, propelled by innovations in digital payments, e-commerce, and digital services. However, Dr Githaiga emphasized the urgent need to address challenges, particularly the internet shutdown during the #RejectFinanceBill2024 protests.…

Nairobi confirmed its first case of mpox on Wednesday after detecting the virus in a traveller from Uganda to Rwanda at a southern Kenyan border crossing. This follows a declaration of a new outbreak in the Central African Republic on Monday, with cases extending to the capital, Bangui. Mpox, a viral disease originating in wild animals, has seen a recent surge in Africa. The Kenyan Ministry of Health announced heightened surveillance measures nationwide after confirming the initial case. While no new cases have been reported domestically, authorities are closely monitoring the situation. The index case involved a long-distance truck driver…

The COVID-19 pandemic had a profound impact on Kenya’s economy, disrupting businesses, reducing Gross Domestic Product (GDP) growth, and increasing unemployment rates. In 2020, the economy contracted to -3% from a rate of 5.0% in 2019 according to the Kenya National Bureau of Statistics (KNBS). As the country navigated these challenges, the concept of “Build Back Better” emerged as a guiding principle for recovery. This approach emphasized not just rebuilding what was lost but creating a more sustainable, equitable, and resilient economy for the future. The European Investment Bank (EIB), which is the European Union’s (EU) Bank, has been a…

Kenya’s Court of Appeal has upheld a High Court ruling declaring significant portions of the Finance Act 2023 unconstitutional. The Act, which remains in effect despite the rejection of its successor, was found to have been enacted through a fundamentally flawed process that bypassed essential legislative stages. The contested sections of the Finance Act introduced amendments to crucial tax laws, including income tax, VAT, excise duty, and regulations governing Special Economic Zones and Export Processing Zones. “Having found that the process leading to the enactment of the Finance Act, 2023, was fundamentally flawed and in violation of the constitution, sections…

Standard Group Plc has announced plans to lay off over 300 employees across various departments. The Nairobi Securities Exchange (NSE) listed media house cited a challenging operating environment characterized by shifting trends in media consumption and the impact of technological advancements on the digital media landscape as the primary reasons for the job cuts. In a statement issued on Tuesday, July 30, the company formally notified the Ministry of Labour and Social Protection of its intention to declare redundancy, as required by Section 40(1) of the Employment Act, 2007. Standard Group emphasized that: “In reaching this decision, we took into…