BY SAMAH HASSAN Property management has been on the rise in Kenya over the years. It has become a go-to for landlords who have little time and do not want to add managing their properties on their schedule. Renting out of properties can be a pain in the flesh with tasks like getting tenants to occupy the space, maintenance of the property, collecting and accounting of the rent, services such as security and cleanliness or even beautification of the property. With this, landlords tend to seek a property manager that would handle everything for them. In return tenants are happy…
Author: NBM CORRESPONDENT
BY KOSTA KIOLEOGLOU Between 2007 and 2015, the average price of a 1-3 bedroom apartment in Kenya has risen from Sh5.2m shillings to 13.4m shillings, rendering into a compounded annual growth rate (CAGR) of 14.5% as revealed by available reports. The housing deficit in Kenya stands at 2 million and continues to grow at a rate of about 200,000 units a year as per available data. These two elements should excite every investor and prescribe a brilliant path for the Kenya real estate market. Under normal circumstances, Kenya’s real estate market would have attracted all major construction companies around the world, as well as many foreign investors. Theoretically speaking,…
With new risk-based pricing systems for loans on the horizon in Kenya, it’s becoming increasingly important for both consumers and financial institutions to understand how credit scores can help enable the right conversations. TransUnion Kenya is urging lenders to focus on individual credit scores to make smarter decisions and empower consumers to take control of their financial health. When you take a look at the Kenyan market, the need for a new pricing system for interest rates, be it risk-based or not, becomes increasingly clear. “Many banks currently take a blanket approach to pricing,” says TransUnion Kenya CEO, Billy Owino.…
BY VIPUL SHAH Kenya has continuously stood out as the place to invest in Sub Saharan Africa in spite of the challenges that it faces. Investors continue to be bullish about the economy because of Kenya’s importance to the regional economy and its focus on investments around the Big 4 Agenda. As we look forward to the reading of the Kenya Budget 2019/2020, our attention is drawn to the outlook on the Kenyan economy. The macroeconomic environment The economy was forecast to grow at 5.9% earlier this year. This has been brought down to 5.8% due to the failed long…
In a move signaling a revolution in the financing of micro, small and medium scale enterprises (MSMEs) Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge led five commercial banks in launching the pilot phase of a mobile loan product targeting MSMEs. The mobile-based credit scheme is set to improve access to credit for small-to-midsize enterprises, which have been locked out of the formal credit market because of the informal nature of their records and lack of collateral for secured loans. The loan product, marketed under the name Stawi, will initially be managed by five banks – Commercial Bank of…
Everyone has financial goals that are unique to them and their financial needs. Personal finance is about meeting personal financial goals, whether it is having enough for short-term financial needs, owning a home, buying a car, funding education or planning for retirement. There are various avenues of investments. We focus on investing in Unit Trusts, also referred to as Mutual Funds. A unit trust is an investment scheme that pools money together from many investors who share the same financial objective to be managed by a professional fund manager who invest the pooled money in a portfolio of securities such as…
BY ANTONY MUTUNGA AND DAVID WANJALA Safaricom extended its CEO’s contract that was coming to an end in August by 12 months, pouring cold water on a storm of excitement that his impending exit had began to brew. What, with speculation that GOK mulled a local head at the giant telco at the expiry of Bob Collymore’s tenure? The apprehension in the public, majority of whom are stakeholders in Safaricom, of Jubilee Government’s salivating for a local CEO at East Africa’s biggest telecommunication company is understandable. None of the government’s high potential parastatals; Kenya Power, Kenya Pipeline, Kengen, Communication Authority…
BY ANTONY MUTUNGA The economic growth of sub-Saharan Africa (SSA) took a beating in 2018, declining from 2.5% in 2017 to 2.3% according to the World Bank. The slowdown was accredited to weaker exports among the largest exporters on the continent; Nigeria and Angola, as well as subdued growth in resource intensive countries such as Zambia and Liberia. Sudan experiencing a deep recession was also a contributor. According to the World Bank’s Africa Pulse 2019 report, the slowdown was experienced more in the first half of the year. In the second half, the economy was able to rebound a bit.…
BY JEREMY OPAR Jubilee manifesto promised to deliver 500, 000 affordable housing by the end of two terms. Was this just a mere a political pledge? And how realistic has it become when it comes to policy and legislative formation. To what extent has the national government consulted with the county governments in terms of setting, planning and executing the housing project? Has the public been involved in a meaningful participation as it’s called for under Article 1 of the Constitution, which declares that all sovereign power belongs to the people? Article 1 also establishes the principle of devolution by…
BY VICTOR ADAR It is not often that companies in the same line of business would form an alliance. But that is the perception that a technology integrator and service provider, Dimension Data, is slowly trying to change. The Sh810b worth technology firm recently inked a deal with SAP to offer a new set of intelligent enterprise solutions in East Africa. The deal will, according to Ndung’u Kahindo, general manager solutions for Dimension Data in east Africa, drive utilization of SAP solutions and in-built applications that are unique to client operations, and which is currently lacking in the region. Mr…