The Kenyan economy is predicted to grow at 6.5% in 2017 from an estimated 5.9% last year driven largely by a historic spike in borrowing this year by government and private sector as the capping works itself out. Approach to forecasting1 We approach GDP forecasting from the gross fixed capital formation side. Capital formation is the investment in fixed assets of the country taken as a collective. For growth to happen there must be additional capacity created through accumulation of capital. This additional capacity is funded through savings and borrowings. Our overall view With accelerated infrastructure project implementation and completion…
Author: Editor
BY VICTOR ADAR At a critical time in the history of stagnant growth, African cities are seemingly under siege. According to a latest report by the World Bank titled “Africa’s Cities: Opening Doors to the World,” it is apparent that it is only in sub-Saharan Africa where infrastructure is not a beautiful thing, with poor roads, bad urban planning and unclear property rights taking centre stage. The low development of African cities is, the report says, because of the narrative that they are crowded, disconnected and costly. Here at home, the tale is actually the same despite the fact that…
BY BEPHINE OGUTU African cities are growing in size but experiencing stunted economic growth due to the disconnection to the world. In almost all of them, there has been a propensity towards the concentration of growing populations in moderately large cities. Within the developing world cities are the centers of growth and governance, as well as home to an increasing proportion of the national population. Many countries in Sub-Saharan Africa have recently experienced accelerated urban expansion. According to a 2004 UN report on World Urbanization Prospects, in 1950 there were only 20 million people, or 10% to 15% of the…
BY FUAD MOHAMMED As recent as January 17, the Government of Kenya deported 550 Somali refugees, cementing its resolve to close down the Daadab Refuge Camp, the World’s largest refugee camp with a population of 329,811 as of 2015. Dadaab camp was constructed in 1992. If Kenya goes ahead with it is threat, both the locals and the refugees will be affected in equal measure. The announcement to close the camp was condemned by local leaders, among them Garissa County Governor, Nathif Jama and the County Senator Yussuf Hajji who blamed government for not consulting local community and leaders. The loudest decry of the Dadaab…
BY NYAMBURA KIMAI The Merchant Shipping Act, 2009, does a great deal to bring about key measures for passenger ships as well as for loss or damage to any property. Part XV, Sections 360-368 in particular, deal solely with passenger ships, control and returns of persons on ships. Given the rapid advancement of society – and the shipping industry – the Merchant Shipping Act of 2009 can be said to be slightly out-dated as far as its provisions for passenger ships are concerned. That said, the Athens Convention relating to the carriage of passengers and their luggage by sea (PAL)…
BY VICTOR ADAR It is four years since Konstantinos Kioleoglou, the man who has become synonymous with agro forestry plantation sector, came to set up Africa Plantation Capital’s operation in Kenya. Popular as Kosta, the expert valuer is here to establish a brand name while creating a strong network and stemming out challenges currently faced by the global timber and biomass industries. Mr Kioleoglou is behind the driving seat of Africa plantation capital, a division of the APC group that was initially incorporated in 2002 as private entity. APC group which is the mother company, though, has been operating successfully…
The corner suite at KPMG East Africa is getting a little uncomfortable for Josphat Mwaura. The man who heads the regional office of the leading audit and consulting firm is not sitting pretty at all, with employees building as a wave that could sweep him out of power gains momentum. Internal email communications leaked to BT show a major fallout between top management on one side the partners and employees on the other. The tension has exploded into an all-out cyber war between the disgruntled elements and the CEO, Mr Mwaura, who is being accused of a number of ills,…
Several Banks in Kenya have partnered with Verve International in a deal that will allow customers to use Verve across the lenders’ network to withdraw cash and make payments. Inter-connectivity of Bank ATM’s and POS services allows for sharing of infrastructure amongst banks and opens up a wider network of services for their customers. This facilitates more choice and convenience for customers. This means Verve cards and virtual/digital tokens will be accessible in over 3,000 point of sale terminals, 1,300 ATMs and 12,000 agency banking outlets, giving customers more accessible banking services. These are the outlets that are part of…
Capital inflows into the Kenyan renewable sector have been steadily increasing in recent months, according to Asoko Insight, the Intelligence partner of the Africa Renewable Energy Leaders’ Summit (ARELS) At the start of 2017, renewables represent in fact 87% of the energy mix in Kenya, an impressive performance compared to players such as the European Union (25.4% in 2014) or the USA (10% in 2015). In line with its Vision 2030, the Kenyan government is scaling up power production through renewable generation, with the aim of growing by 980%, from the current 2,341MW to 23,000MW. According to Eng. Isaac Kiva, director of Renewable…
Kenya has begun test runs of Africa’s first plant that converts end of life plastic waste into commercial synthetic fuel oil. The Kiambu County-based plant uses a conversion technology that involves heating the waste under controlled conditions to produce oil, similar to industrial diesel oil (IDO) and heavy fuel oil (HFO) used in power plants, industrial furnaces and boilers. This shows the country’s resolve to stem the plastic pollution menace that has refused to melt away. Over 24 million plastic bags are used monthly in Kenya, according to the Green Belt Movement, half of which end up in the solid…