COVID-19 continues to be a threat to humanity, as the number of the infected increases and a cure remains elusive. Kenya has not been left unscathed as the pandemic is taking its toll on the economy. According to Moody’s, a credit rating agency, the rapid and widening spread of COVID-19 is creating a severe and extensive credit shock across many regions and markets. As a result, Kenya is at risk due to its high debt and interest burdens, which will worsen with larger fiscal deficits and weaker growth. Due to this, in addition to the rising financing risks posed…
Author: Nairobi Business Monthly Reporter
The shilling has been on a depreciation streak having lost 5.4%, year to date, ending May at Sh106.8 on average due to reduction in diaspora remittances due to Coronavirus pandemic, a flight to safety by foreign investors, increased demand from importers as they stock up dollars and dwindling forex reserves Over the past five years, the Kenya Shilling has been relatively stable against the Dollar, as the Central bank has continuously maintained high forex reserves at above the statutory target of 4.0 – months import cover, having averaged $6.7b equivalent to 4.6 months average import cover. The shilling has been…
BY JACOB OKETCH The implosion that we have witnessed within the ruling party Jubilee has revealed the kind of political formations that we should expect ahead of the 2022 General Election. At the centre of it all is Deputy President William Ruto who has fallen out spectacularly with his party boss President Uhuru Kenyatta. The big question is what now for the embattled DP going forward? The first two weeks of May the Jubilee Party has undergone a transformation of epic proportions. First were the changes that were made in the party’s management council where four new faces were introduced…
BY VICTOR ADAR If you are mourning and someone offers you a cheque of good amount, chances are that you will stop and smile while grudgingly looking downwards, and then continue grieving after that. Believe it or not, funerals are extremely expensive in certain parts of the country with budgets going for thousands, and even millions of shillings. Try to put in mind the budget for coffin, embalming, morgue storage, newspaper and radio adverts, tents, transport, burial permit, and of course, other over heads. Insurance products might be a game changer. Davis Ongiro, the general manager of Octagon Insurance limited,…
Many challenges lie ahead. When travel finally resumes, there will be a frantic race to attract guests. Success will require innovation and originality BY KABELO MOTHOA As lockdowns are extended around the world, including in Italy, the United Kingdom, France, India and now South Africa, businesses are working hard on strategies to ensure they are ready to hit the ground running when these are lifted, even if only in a staged manner. And the hospitality industry is among the sectors leading the field. It is essential for hospitality businesses to be ready to jumpstart operations as soon as it is…
A woman is the full circle. Within her is the power to create, nurture and transform – Diane Mariechild, Author of Mother Wit and Inner Dance BY VICTOR ADAR Mothers Day is not a public holiday but a day when people are expected to show appreciation to mums and mother figures. It is an annual event that is generally celebrated on different days in different countries. This time, it was celebrated on May 10. Though sometimes overrated, a tangible gift like shoes, dress, wristwatch, earrings, laptop or a car, money transfer, or a dedication message to a special lady in…
Poor management and graft could have killed the National Hospital Insurance Fund (NHIF). The inappropriate behaviours by top managers that saw private clinics, which the national insurer had not inspected receive payments, including endemic boardroom wars and structural problems were part of the warnings. It was always about scandals with previous top management being charged of abuse of office and conspiracy. You may wonder how, for example, ghost clinics were able to draw cheques from the hospital insurance fund. Systems were most likely being misused. As such, Peter Kamunyo Gathege was appointed as the new CEO of the NHIF with…
In periods when the economic outlook is uncertain, investors should prioritize rebalancing. Although it is difficult to predict what the global pandemic will really hold for different asset classes, leading finance expert Saikat Kumar underscores that rethinking one’s asset allocation strategy amidst the current market turmoil has never been more important. “There is no doubt that the economy and markets will spring back especially with the many progress being made to overcome this global crisis. However, full recovery might take time, and so it is crucial for investors to add some resilience into portfolios in order for them to meet their…
The pound – May’s worst performing major currency – could “easily drop to $1.18” at the end of June, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations. The warnings from deVere Group’s chief executive and founder Nigel Green come as it is revealed that the British currency shed almost 4% against the U.S. dollar in May and 3% against the euro. Mr Green comments: “The pound is this year’s third-weakest major currency – just behind the New Zealand dollar and Norwegian krone, which have done even worse. It has been battered since the…
The World Bank Board of Directors approved a $43m International Development Assistance (IDA) credit for Kenya as part of a larger regional Emergency Locust Response Project to respond to the threat posed by the desert locust outbreak and to strengthen Kenya’s system for preparedness. IDA was established in 1960. It helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa. Kenya…