Author: David Indeje

Growth in the Kenya private sector softened in November on slower increases in orders, exports, buying levels, and output as the Covid-19 restrictions and resurgence of positive cases, the latest Stanbic Bank-Purchasing Managers’ Index survey indicates. The headline PMI fell sharply to 51.3 points in November from an all-time high of 59.1 points in October. A reading above 50 on the index indicates expansion. “Key to the slowdown were weaker increases in business activity and sales, as firms commented on issues with money circulation and economic stress caused by a rise in local COVID-19 cases. Reintroduced curfew measures meanwhile led…

Kenya’s National Treasury says tax reliefs which took effect in April will end January 1. Treasury Cabinet Secretary Ukur Yatani in a statement issued Friday said the corporate tax rate currently at 25% will revert back to 30% and the Value Added Tax (VAT) will revert back to 16% from 14%. “These are not new taxes but just a return to the prevailing tax rate before the pandemic,” National Treasury said. However, it said it is committed to continuing cushioning low-income earners by retaining the 100% tax exemption for those earning monthly incomes of Ksh 24,000 and below.  Treasury’s announcement…

HF Group PLC, a multi-dimensional financial services provider, expects the coronavirus (COVID-19) crisis to hit its profit in the year ending Dec. 31, 2020.  In a cautionary announcement to investors, the group’s chief executive Robert Kibaara says the duration, severity, and volatility of the pandemic has resulted in a slowdown in the real estate sector credit growth adversely “affected the non-performing loans take out initiatives.” “As a result, HF Group Plc projects that the net earnings for the year ended 31 December 2020 are expected to be substantially lower compared to the earnings reported for the same period  in 2019.”…

Kenya’s headline inflation rate hit a 7-month high of 5.46% from 4.84 in October, the statistics body said on Monday. The Kenya National Bureau of Statistics attributed the increase to higher food costs with year-on-year food inflation standing at 6.09%  in November 2020. “This was a net effect of increase in prices of several food items which outweighed decreases in prices of others. Prices of beef with bones, wheat flour-white and tomatoes increased by 0.99, 0.69, and 0.67 percent, respectively.” Government data also showed that the Housing, Water, Electricity, Gas and Other Fuels’ Index, increased by 0.07 percent in the…

Britam Holdings, a diversified financial services company and Kenya Airways have issued profit warnings that earnings for the year will be lower than 2019 earnings. According to Britam, the uncertain economic outlook from the Covid-19 pandemic has affected its core business units vital including real estate and the stock markets. In a statement to shareholders, Britam through the Company secretary Nancy Kiruki said “Based on a preliminary assessment of the forecasted financial results of the Company for the period ending 31 December 2020, the earnings of the Company for the current financial year are expected to be substantially lower compared…

Kenya’s current account deficit (CAD) narrowed further in the 12 months to October 2020 on the back of agricultural exports and resilient remittances. According to the Central Bank of Kenya data, the current account deficit narrowed to 4.9 percent of GDP in the 12 months to October 2020 compared to 5.3 percent of GDP during a similar period in 2019. “This reflected strong performance of agricultural exports, resilient remittances, as well as lower oil imports,” said the CBK in its Weekly Bulletin.  Current Account is the sum of the balance of trade (exports minus imports of goods and services), net factor…