Author: David Indeje

Kenya’s private sector activity contracted slightly in March after a six-month slump, according to the Stanbic Bank Kenya Purchasing Managers’ Index (PMI).  The PMI reading fell to 49.7 from 51.3 in February, indicating a deterioration in business conditions. The slowdown was attributed to lower new orders and cash flow problems faced by some companies.  “Output contracted modestly, which survey panellists attributed to lower new order intakes and cash flow problems,” Stanbic Bank said in the survey. “The decline in new orders signalled by the survey was only fractional, however, as firms reported an easing of price pressures that supported customer…

Listed cement company Bamburi has warned investors that its 2023 profit will be significantly lower than 2022 due to a one-time expense from selling its Ugandan subsidiary. The company expects net earnings to be at least 25% less than the KSh181 million reported in 2022 and not exceed KSh135.8 million. “The expected decline in net earnings is largely attributable to the one-off settlement of outstanding tax liabilities and legal disputes in Hima Cement Limited in Uganda as part of the closure of the sale transaction, thereby impacting 2023 results,” the company said through a notice published on Tuesday. Now Bamburi…

Kenya’s headline inflation rate fell to 5.7% in March 2024, marking the first time it dipped below 6% in 24 months. This represents a significant decline of 0.6 percentage points from the previous month’s rate of 6.3%. The Kenya National Bureau of Statistics reported monthly inflation of 0.2%, compared with 0.1% in February. However, the risk of high fuel prices keeping inflation near the upper end of the Central Bank of Kenya’s target range (2.5% to 7.5%) remains. The CBK’s Monetary Policy Committee (MPC) will meet on April 3rd, 2024, to decide on interest rates. Analysts note that its decision…

TikTok, a Chinese-owned social media platform, has established a global Youth Council.  The Global Youth Council comprises 15 teenagers aged 15–18 from around the world and aims to make the platform safer for those under 18. “Today we’re announcing the launch of TikTok’s global Youth Council, a new initiative that further strengthens how we build our app to be safe for teens by design,” reads the Newsroom post.  Council members come from diverse home countries, including the US, UK, Brazil, Indonesia, Ireland, Kenya, Mexico, and Morocco. The initiative comes amidst a growing desire for youth voices to be heard on online…

Equity Group Holdings Ltd. recorded strong growth despite economic headwinds for its 2023 full-year financial results. The Group’s net profit declined by 6.48% to Ksh 43.7 billion from Ksh 46.1 billion in 2022 after the lender doubled its bad loan provision. Despite a profit decline, the Group demonstrated resilience in a challenging economic environment marked by high inflation, interest rates, and currency volatility. “Despite the rise in the cost of funding, we did not adjust the base rate on personal loans equivalent to 32% of our loan book, effectively keeping them at 13%. This means that our interest income grew…

The United Nations General Assembly unanimously adopted the first global resolution on artificial intelligence on Thursday.  The resolution encourages the protection of personal data, monitoring of AI risks, and safeguarding of human rights. “Today, all 193 members of the United Nations General Assembly have spoken in one voice, and together, chosen to govern artificial intelligence rather than let it govern us,” US Ambassador to the United Nations Linda Thomas-Greenfield said. The non-binding resolution, proposed by the United States and co-sponsored by China and 121 other nations, represents the first time the Assembly has adopted a resolution regulating the emerging field. …