Author: Muindi

Kenya’s inflation jumped to 6.9% in January, reversing a two-month decline. The rise has been attributed to increases in food, energy, and transport costs, which accounted for over half of household spending. “Food and Non-Alcoholic Beverages Index rose by 0.4 per cent between December 2023 and January 2024. The rise in food inflation is mainly attributed to the increase in prices of some food items, which outweighed the decrease in prices of other foodstuffs,” KNBS said in a statement issued Wednesday. Consequently, a weakening shilling has made consumers face new cost pressures from imported goods and education.

Absa Bank Kenya PLC is the official banking partner for the upcoming Magical Kenya Ladies Open (MKLO) Golf Tournament, with a Ksh 15 million investment. The sponsorship demonstrates Absa’s dedication to promoting national development through sports tourism and women’s empowerment. Magical Kenya Ladies Open takes place from February 8th to 11th at Vipingo Ridge, making it the first leg of a 31-tournament series within the Ladies European Tour 2024 calendar. Five Kenyan amateur golfers have been confirmed  The tournament provides a platform for talented female golfers from around the world, including: German Alexandra Försterling: Winner of the 2023 VP Bank Swiss Ladies Open and…

Safaricom Telecommunications Ethiopia has witnessed a surge in M-PESA users and transactions since launching the mobile money service on August 15, 2023. According to its latest quarterly update, the number of M-PESA users had reached 3.1 million by the end of December 2023, up from 1.2 million in September 2023.  The value of transactions also increased from Ksh3 billion ($18.7 million) to Ksh18.5 billion ($115.3 million) in the same period. Safaricom chief executive Peter Ndegwa expressed his satisfaction with the performance of M-PESA in Ethiopia, saying that it has generated optimism among the young population and will contribute to financial…

The United States government, through USAID’s Economic Recovery and Reform Activity (ERRA) program, has awarded a $2 million grant to the Eastern Africa Grain Council (EAGC).  This funding will strengthen the competitiveness of export-oriented staple food value chains in East Africa, specifically benefiting Kenya, Tanzania, and Uganda. Through the five-year ERRA US$75 million program, USAID and TMA are driving transformative trade and investment reforms in the East and Horn of Africa to create jobs in the staple crops and textiles sectors, especially for women and youth. A core part of this is to increase the ability of grain producers to export both regionally and to the rest of…

The Federation of Kenya Employers (FKE) has advised its members not to comply with the housing levy until the legal dispute is resolved. The Court of Appeal rejected the government’s attempt to reinstate the housing levy, which was declared unconstitutional by the High Court.  The levy would require employers to deduct 1.5% of their employees’ salaries to fund the affordable housing plan.  “In light of the court order, we advise our members not to deduct the levy unless the Court of Appeal rules otherwise after the hearing of the substantive appeal, or in the alternative, should the government challenge the…

Kenya’s Court of Appeal has upheld a High Court ruling that declared the government’s housing levy unconstitutional.  The appellate court’s decision means that the deduction of the housing levy from Kenyans’ salaries remains suspended. The government had argued that the suspension of the levy would lead to a budgetary crisis and job losses.  However, the appellate judges ruled that the public interest lies in allowing the appeals against the High Court ruling to be heard first.  “This is because if the stay sought is granted at the stage, should we affirm the challenged decision, then some far-reaching decisions that will…