Author: Muindi

The Bank of Tanzania (BoT) has adopted an interest rate-based monetary policy, effective January 2023, instead of the money supply. This change aims to enhance the effectiveness of monetary policy in achieving low and stable inflation and supporting economic activities. The BoT announced this change in a statement on Wednesday, January 3, signed by its governor, Emanuel Tutuba. Tutuba said the new framework aligns with Tanzania’s commitment to harmonize its monetary policy with other regional economic communities, especially the East African Community. “A change in the CBR will signal the direction of monetary policy, indicating either a tightening or expansionary…

Kenya’s Ministry of Labour and Social Protection will switch the mode of payment for the Inua Jamii cash transfer programme from bank accounts to M-PESA, a mobile money service. The change will affect the beneficiaries of the Orphans and Vulnerable Children (OVC) and Persons with Severe Disabilities (PWSD) cash transfer programmes, who will be required to enrol for M-PESA disbursements by the end of January 2024. The ministry said that the switch to MPesa will improve the efficiency, convenience, and security of cash transfers, as well as reduce the transaction costs and delays associated with bank accounts. “The first phase…

Inflation in Kenya fell to 6.6 per cent in December 2023, down from 6.8 per cent in November, mainly due to lower prices of some food and fuel items.  “This was mainly driven by increases in prices of commodities under transport (11.7%); housing, water, electricity, gas and other fuels (8.3%); and food and non-alcoholic beverages (7.7%) between December 2022 and December 2023,” the KNBS said on Kenya’s inflation. Food inflation was slightly higher at 7.7 per cent, compared to 7.6 per cent in November, as some vegetable prices increased. Fuel inflation, on the other hand, dropped to 13.7 per cent…

Acorn Student Accommodation Development REIT (ASA D-REIT) sold one of its properties, Qwetu Aberdare Heights II, to Acorn Student Accommodation Income REIT (ASA I-REIT) for Sh1.48 billion.  The property has 630 beds and is located near USIU. It is the fourth asset that ASA I-REIT has acquired from ASA D-REIT in the past three years, bringing its total portfolio to seven properties with 4,450 beds. The sale also increased the total asset value of ASA I-REIT to Sh10.5 billion. ASA D-REIT used part of the proceeds to repay Sh600 million of the Acorn Green Bond, which has a total value…

Sanlam Kenya Plc, a non-bank finance solutions provider, has projected a drop in its earnings after tax for the year ending December 31, 2023, due to high costs of doing business and a sluggish economy. The company expects its earnings to be at least 25 per cent lower than the previous year, the board of directors announced. The decline in earnings has been attributed to high-interest rates that have increased finance costs for the company and unrealised losses on its government securities portfolio, which have reduced its fair value. For the financial year ended December 31, 2022, the company reported…

Everyone needs a roof above their heads. According to the Worldometer, Kenya’s 2023 population is estimated at 55,100,586 people at mid-year. Kenya’s population is equivalent to 0.68 per cent of the total world population. At the same time, Kenya ranks number 26 in the list of countries (and dependencies) by population. With such a vast population, housing demand has been growing year over year. According to Habitat for Humanity, Kenya has an annual housing demand of 250,000 units with an estimated supply of 50,000 units, culminating in a housing deficit of 2 million units, or an 80 per cent deficit.…