Author: David Indeje

Kenya’s manufacturing sector experienced a slight slowdown in the third quarter of 2024, recording real GDP growth of 2.3 per cent, down from 2.8 per cent in the same period of 2023. While the sector continued to expand, key challenges emerged, impacting overall performance. The food subsector remained a significant driver of growth, with sugar production surging significantly. Output rose from 77,686 metric tonnes in Q3 2023 to 231,052.6 metric tonnes in the review period, a substantial increase. This robust performance in sugar production provided a crucial boost to the overall manufacturing sector. Furthermore, the production of soft drinks experienced a…

The Kenyan Treasury experienced robust demand for its securities in FY2024. Treasury bills, particularly the short-term 91-day bills, were highly sought after by investors, reflecting a preference for minimizing interest rate risk. This strong appetite resulted in significant oversubscription rates across all maturities. T-Bill Market During the year, T-bill auctions remained highly oversubscribed in FY2024, with an overall subscription rate of 153.3%, exceeding the previous year’s 120.0%. The 91-day T-bill witnessed the strongest investor demand (399.7% oversubscription) as investors sought to minimize duration risk. This was slightly lower than the preceding year’s 529.1%. The 364-day and 182-day T-bills also saw…

Kenya’s annual inflation rate increased marginally to 3.0% in December 2024, from 2.8% in November, remaining within the Central Bank of Kenya’s target range of 2.5% to 7.5%. This slight uptick was primarily driven by rising food and transport costs, despite the Kenyan shilling’s strong performance this year. According to the Kenya National Bureau of Statistics (KNBS), the Food and Non-Alcoholic Beverages index increased by 0.7% between November and December. Notably, prices of maize flour (sifted, fortified, and loose) rose significantly, while some fruit and vegetable prices declined. The transport index also contributed to the overall inflation increase, rising by…

Ethiopian lawmakers have passed legislation allowing foreign banks to operate within the country, a crucial step in the government’s efforts to attract foreign investment. Ethiopia, home to over 120 million people and boasting one of sub-Saharan Africa’s largest economies, has gradually opened its tightly controlled economy since Prime Minister Abiy Ahmed assumed power in 2018. The new law, enacted by Parliament on Tuesday, grants foreign lenders the authority to: Establish subsidiaries Open branches or representative offices Acquire shares in domestic banks. However, the law imposes a 40% cap on foreign strategic investors’ ownership in any local bank. The state-owned Commercial…

The Kenya Veterinary Association (KVA) calls for the postponement of the planned nationwide livestock vaccination, citing concerns over inadequate public awareness, insufficient resources, and the politicisation of the campaign. In a statement released on Tuesday, December 17th, the KVA emphasised the need for more time for public sensitization to address concerns and ensure the active participation of livestock keepers. They argued that the current lack of transparency and stakeholder involvement undermines the credibility of the exercise. “The government should pause the current exercise to allow time for adequate public sensitization and to address concerns from Kenyans. This will help ensure…

Gilbey’s, Kenya’s leading gin brand, recently hosted the “Real Gilbey’s Hangout” at Mass House, an electrifying in-bar experience that brought the brand’s “Made for Real Moments” life campaign to life. The event transformed Mass House into a vibrant hub of fun, flavour, and friendship. Guests indulged in expertly crafted Gilbey’s cocktails, showcasing the brand’s renowned quality, smooth taste, and versatility. Engaging games like checkers and Jenga fostered connections and encouraged guests to savour shared moments with friends. A highlight of the evening was a thrilling cocktail-making competition, where participants showcased their creativity in crafting unique Gilbey’s concoctions. Winners of the…