Author: David Indeje

Kenya’s private sector activity fell in June, the sharpest drop in seven months, contrasting with the 16-month high recorded in May. Data from the Stanbic Bank Kenya Purchasing Managers’ Index (PMI) fell to 47.2 in June from 51.8 in May. A PMI reading of above 50.0 indicates an improvement in the business conditions, while readings below 50.0 indicate a deterioration.  During the period, widespread economic challenges, protests surrounding the Finance Bill 2024, and policy uncertainty led to a significant decline in sales volumes across most sectors. “The downturn was partially softened by a rise in new orders across manufacturing, which was…

Kenya’s High Court has declared the laws establishing the Social Health Insurance Fund (SHIF), unconstitutional. However, the court offered a lifeline, suspending its decision for 45 days. A three-judge bench led by Presiding Judge Justice Alfred Mabeya and justices Robert Limo and Dr. Freda Mugambi ruled that Parliament did not adequately involve the public in crafting the laws – Social Health Insurance Fund Act, 2023; Digital Health Act, 2023 and Primary Health Act, 2023. Sections of the Social Health Insurance Act requiring mandatory contributions to access public services and healthcare were deemed unconstitutional. This violates the right to emergency medical…

Nippon Paint Holdings Co., Ltd, a Japanese paint and paint products manufacturing company has launched its operations in East Africa. The company has established a wholly-owned subsidiary, NIPSEA Paint Kenya, which will introduce cutting-edge Japanese technology in automotive refinishing, car care, wood coating, and industrial coatings. Initially, Nippon Paint will utilize a central hub in Nairobi, Kenya, to serve the entire East African market before setting up individual operations in each country. This strategic move positions them to capitalize on the region’s dynamic economic growth, burgeoning middle class, and increasing investment opportunities. “We’re excited to establish a permanent presence in Africa,…

Tanzania’s Amsons Group is set to acquire Kenya’s largest cement manufacturer, Bamburi Cement, in a deal valued at $182.89 million (Ksh23.59 billion). This translates to a purchase price of Kshs 65.0 per share. The offer represents a 44.44% premium over Bamburi’s share price on the Nairobi Securities Exchange (NSE). Amsons, a conglomerate with interests in various sectors across East Africa, is seeking to expand its footprint in the region through this acquisition. The deal could potentially lead to Bamburi’s delisting from the NSE. “We have great plans to deepen our investment in Kenya and Bamburi. It is part of our…

Renewed protests in Kenya against the Finance Bill 2024 raise fears of violence, impact on safety, investment, and government debt. Kenyans resumed protests Tuesday against the Finance Bill 2024, despite President William Ruto’s assurance of a peaceful response from security forces. Dubbed “#OccupyCBDTuesday”, were infiltrated by “goons” to commit violence and theft as was witnessed in Nairobi, Kenya’s capital. Consequently, the bi-weekly protests have forced most businesses to remain closed. The protests began on Tuesday, June 18. Initial demonstrations started peacefully but turned violent on June 25th, with clashes between protesters and police. The Kenya National Commission on Human Rights…

Kenya’s private sector activity witnessed a modest improvement according to Stanbic Bank’s latest Purchasing Managers’ Index (PMI) for May 2024. The index rose to 51.8, up from 50.1 in April 2024, exceeding the neutral mark of 50.0. This signifies a strengthening of operating conditions compared to the previous month. A PMI reading above 50.0 indicates improvement, while below 50.0 indicates deterioration in business conditions. The May 2024 PMI (51.8) represents a 4.9% increase compared to May 2023 (49.4). During the period, inflation remained relatively unchanged at 5.1%, slightly above the Central Bank of Kenya’s (CBK) target of 5.0%. However, it…