Knight Frank’s Kenya Market Update H2 2024 reveals declining occupancy rates in the commercial office sector. According to the market report, average monthly asking rents for prime office space remained stable at USD 1.2 per sq ft. However, occupancy fell by 4.5% to 72.7% in H2 2024, down from 77.2% in H1 2024. This decrease is attributed to two primary factors: a challenging economic environment impacting tenant demand and the introduction of substantial new office supply including Purple Tower, Highway Heights, Matrix One, The Mandrake, and Museum Hill Towers, adding 522,284 sq ft to the market. Despite this overall decrease,…
Author: Muindi
Muindi
Experience working on communication and marketing departments and in the broadcast industry. Interested in sustainable development and international relations issues.
Equity Bank has announced a reduction in interest rates for new and existing Kenya Shilling-denominated loans. Effective February 13, 2025, for new loans, and March 1, 2025, for existing loans, all borrowers can expect a 300 basis point (3%) decrease. This move aligns with the Central Bank of Kenya’s (CBK) recent decision to lower the Central Bank Rate (CBR) by 50 basis points to 10.75%. This marks the third consecutive rate reduction by Equity Bank in the past six months, following similar decreases in September and November 2024. The revised Equity Bank Reference Rate (EBRR) stands at 14.39%, with individual…
The Kenyan government has approved additional spending of KSh199 billion in the second supplementary budget, a nearly threefold increase from the KSh67 billion that the Draft Budget Policy Statement for 2025 had proposed. This is significant, though lower than previously reported, and still exceeds the projected revenue shortfall following the withdrawal of the Finance Bill 2024. From the proposed 2024/25 Supplementary Estimates No. II, KSh199 billion has been allocated, comprising KSh199 billion for recurrent spending and KSh145.8 billion for development. “The approval comes amid economic disruptions, including civil protests in June, July, and August 2024, which led to the withdrawal…
US-based infrastructure investment firm Everstrong Capital has initiated efforts to secure Kshs 452.2 billion from Kenyan pension funds to finance the construction of the 440-kilometer Nairobi-Mombasa Expressway. In partnership with CPF Capital & Advisory, Everstrong Capital aims to channel significant pension fund assets towards this ambitious infrastructure project. CPF Capital & Advisory, a subsidiary of CPF Financial Services, will provide transaction advisory and placement services for the “Usahihi Expressway Project,” designed to improve travel efficiency between Nairobi and Mombasa. With Kenyan pension funds holding substantial assets, amounting to Kshs 2.0 trillion as of June 2024, Everstrong’s initiative represents a significant…
Safaricom PLC and Opportunity International have partnered to develop FarmerAI, an innovative AI chatbot to provide smallholder farmers in Kenya with real-time, relevant agricultural best practices. The agricultural sector contributes significantly to Kenya’s GDP (22.4% according to KNBS), and smallholder farmers represent a substantial portion of the farming population. FarmerAI aims to address information gaps faced by these farmers, such as access to timely weather advisories, optimal planting schedules, and effective pest management strategies. AI-Powered Solutions FarmerAI leverages generative AI and localized agricultural insights to provide farmers with crucial information directly through accessible channels like SMS and WhatsApp. This direct-to-farmer…
Labh Singh Harnam Singh Limited (LSHS), a leading bus and truck body manufacturer in East and Central Africa, has been placed under administration, signaling a significant setback for the Kenyan automotive industry. This move comes amidst mounting financial challenges for the company, including a substantial debt to KCB Bank. Impact of Administration The appointment of joint administrators, PVR Rao and Swaroop Rao Ponangipalli, effectively transfers control of the company’s assets and operations from its directors. “Following the appointment, all the affairs and business of the company are being conducted by the joint administrators whose powers extend to all assets and…