BY PETER WANYONYI In January and March of this year, this column discussed the emergence and growing acceptance of cryptocurrencies such as Bitcoin, as well as their underlying technologies such as Blockchain. The general view of cryptocurrencies is that they are a fresh new approach to money and its issuance and management, and the lack of a centralised authority controlling the issuance of such currencies makes them particularly attractive to those who want to remain anonymous while transacting online. So far, so good. But every good thing has a not-so-good side, and cryptocurrencies are no different. The very reasons that…
Author: NBM CORRESPONDENT
BY STEPHAN DAMHORST Digitalization is the business driver for companies to safeguard their businesses. However, a great percent of the digitalization projects have or are failing after spending fortunes in activities targeting digitalization. According to a survey done by FUJITSU, one in three organizations have cancelled their digital projects, while a quarter has suffered a cost of up to €555,000 (Sh65.3 million) in digital failed projects. On another hand, some organizations are experiencing great success and are already enjoying the benefits. What seems to be the problem? 74% of businesses also admit that they do not have a digital strategy…
BY KOSTA KIOLEOGLOU According to the Central Bank of Kenya (CBK) report released last month, real estate contributed the most to May’s increase in the stock of non-performing loans (NPLs).The ratio of the non-performing loans to gross loans increased to 12.4% in April from 11.4% in February 2018 largely due to increased NPLs in the real estate, trade and manufacturing sectors. Banks are designed to optimize the transfer of funds from savers to borrowers. However, with lending comes the inherent risk that loan repayments might fall behind schedule or that the borrower might not be able to repay the debt…
This year’s Budget Speech had its main focus on the “Big Four Agenda”. Accordingly, a lot of allocations went to health, housing, food security and manufacturing, with other significant portions going to the so-called enabling sectors, such as security and infrastructure. Government spending has increased five-fold in a span of 10 years, with the latest budget being bigger than those of Tanzania, Uganda and Rwanda combined. For perspective, in the 2007/2008, Government spent Sh693 billion compared to this year’s Sh3.074 trillion. Properly however, what government has at its disposal is Sh2.3 trillion, as Sh800 billion will go towards servicing public…
BY ANTONY MUTUNGA Last month the government was once again at a crucial point as the 2017/2018 financial year was coming to an end. As always the government through the treasury had to present the budget as they welcomed the 2018/19 financial year that started this month. However, unlike before, this time around the budget came at a time when the government has more than one main objective to achieve. With the government working towards reducing the fiscal deficit so as to reduce the current public debt while also focusing on the sectors in its Big Four development Agenda; universal…
BY GILBERT NG’ANG’A If you look only at the topline numbers of Kenya’s economic agenda for the new financial year as per the budget read by Treasury Cabinet Secretary Henry Rotich mid-June, the country looks set for a massive take-off in its growth ambitions. This clearly gives President Uhuru Kenyatta gigantic mileage from a legacy perspective and is good optics for his deputy, William Ruto who is angling to ride on Jubilee’s economic plan to succeed his boss in 2022. But that’s where the relatively positive story ends. When and if the pipeline of projects is successfully rolled out as…
BY PETER WANYONYI A common theme emerged across the region when E.A Finance Ministers presented their budgets on June 14:not a single country in the Community, like their counterparts elsewhere in Africa, can fund its own budget fully. And there’s a new kid on the block, one that does not insist on intrusive conditions that the Western lenders impose. But the story of Chinese lending to Africa and other poor regions of the world makes for concerning reading. As East Africa’s finance ministers simultaneously presented their countries’ 2018/19 budgets on June 14, a common theme emerged across the region: not…
BY SHADRACK MUYESU It is trite law that subsidiary legislation is inferior to the mother Act and that where there is a conflict subsidiary legislation should be construed to give effect to the Act or voided to the extent of the inconsistency. By dint of this, advocates are allowed to tout and advertise. In fact, rule 2 of the Advocates (Practice) Rules 1966 has been deemed unconstitutional. Most emphatically, in Okenyo Omwansa George & another v Attorney General & 2 others, the High Court found that a complete ban on advertising by advocates such as that contained in Rule 2 undermined the…
BY BERNARD MATUMBAI The promulgation of Kenya’s new Constitution in August 2010 epitomised a nation profoundly desirous of a break from tradition; a new beginning in the dispensation of the country’s socio-economic affairs; a renewal of equitable distribution of public resources; a rededication to the redemption of missed opportunities and, more importantly, the definitive path to decentralised governance and service delivery. A culmination of heightened clamour to end years of brazen mismanagement of public affairs, nay, skewed allocation of resources at the national level, Devolution could not have come at a better time. The period preceding, during and after the…
BY ANTONY MUTUNGA Who is Africa Plantation Capital after nearly three years of operation in East Africa region? Africa Plantation Capital Ltd was incorporated back in October 2015. It is part of the APC Group, a group of associated companies including the award‐winning Asia Plantation Capital, which has widened its global corporate presence to include Africa Plantation Capital (APC) in Kenya with major acquisition of freehold lands for the creation of high value bamboo plantations. APC is set to play a key role in the Groups’ expansion within the East Africa Region. Currently the company is represented by three offices…