Author: Antony Mutunga

BY ANTONY MUTUNGA W hen President Uhuru Kenyatta signed the interest rate cap into law, most financial institutions were enjoying high returns due to the high-interest rates they were charging. However, since the signature, the institutions shifted their focus to lending mostly to large organizations and governments whom they considered less risky. What came next was a decline in access to credit for most small and medium enterprises (SMEs), which make up a majority of the Kenyan economy. Kenya’s economy has continued to slow down due to a reduction in the growth of the private sector, a rising unemployment rate,…

BY ANTONY MUTUNGA The beginning of the year mostly symbolizes a fresh start for many. However, the beginning of 2020 was different for one of the country’s oldest retailers. It marked the end of an era for Nakumatt, which was once the biggest retailer’s in East Africa. Since 2017 the company struggled with a cash crunch, which saw it start to reduce the 60 stores it had as it could no longer raise enough cash to pay rent or its creditors and suppliers. The entry of France’s Carrefour and South Africa’s Shoprite into the market continued to hurt the retailer.…

BY ANTONY MUTUNGA There is no doubt that the digital economy in Africa is on the rise. According to the International Telecommunication Union (ITU), the number of people using the Internet in Africa soared to 24.4% in 2018 from 2.1% in 2005. The growing adoption of technology is fast transforming the continent. The rapid adoption of mobile technology has seen the continent leapfrog fixed-line Internet connections and increase financial inclusion.Despite technology creating solutions for health, environmental and overpopulation challenges that Africa is facing, the continent relies much on overseas technology companies to create the needed digital infrastructure. As a result,…

Username investments augment her properties with a perimeter fence, estate gate, graded access roads, water and electricity making them ready for immediate development to woo more customers BY ANTONY MUTUNGA The local youth are facing a tough time where unemployment and lack of credit have crippled most opportunities to better their living standards. With formal employment not offering enough chances to serve their growing population, a majority have ended up in the informal sector. As a result, many of the youth have put aside any thoughts of investing in a home or in a plot. The growing real estate sector…

BY ANTONY MUTUNGA Last year, the sub-Saharan region recorded a 3% growth after a slow year in 2017, where it stood at 2.7%, according to the International Monetary Fund (IMF). This was as a result of better economic policies and external environment. For 2019, the IMF predicted the economic growth was to increase even further, stating it would reach 3.5%. After six months, the institution reviewed its forecast, and in its October 2019 regional economic outlook, it trimmed down its forecast to 3.2%. The slower pace is due to weaker growth in one of the largest countries in the region,…

BY ANTONY MUTUNGA According to the Central Bank of Kenya, the outstanding total public debt has increased from Sh1.89 trillion in June 2013 to Sh5.81 trillion as of June 2019. As a result of increased public investment and a shortfall in revenues, the IMF increased the country’s risk of defaulting on debt repayments score from low to moderate. With the country’s debt sustainability ratio currently standing at 62%, the Government had already breached the debt threshold of 50% of the GDP. The country breached the threshold in 2016 due to increased borrowing to fund the Government’s Big Four Agenda. In…

BY ANTONY MUTUNGA The worldwide leader in office workplace solutions has continued its penetration of the Kenyan market by opening their 10th business centre in the country at Britam Towers, Upper Hill. The centre aims to attract the growing number of developers, start-ups, entrepreneurs, SMEs and blue-chip companies in the city. The new centre which offers fully furnished offices, co-working spaces, meeting rooms and virtual offices was possible as a result of another successful joint venture with Lanor Holdings, which is part of the AMS Group. It adds to the other Regus flexible workspaces located in Westlands, Kilimani, Nairobi Central…

T echnology has done wonders for this world. Since the start of the digital era, the world has experienced numerous technological advancements that have taken it to new heights. Artificial intelligence (AI) is among these technologies as it has the potential to change how people work and live. In its state and the current growth rate of technology advancement, it is only a matter of time before it starts impacting the society and the economy enormously. To better understand AI, there is a need to identify the components that make it, and one such subset is machine learning. It is…

For a long time, Kenya has maintained the title of king in East Africa thanks to its lead in different industries such as technology and finance. However, this is fast becoming a thing of the past as her neighbours start to come up while Kenya seems to loosen its grip on the crown. Countries such as Ethiopia and Rwanda have seen their economies flourish while Kenya’s has dwindled, or, at best, remained stagnant. Every year the country’s debt has increased reaching Sh5.42 trillion with the domestic debt at Sh2.70 trillion and the external debt amounting to Sh2.72 trillion as of…