The government’s undeniable optimism in the country’s economic growth projections cannot be understated. During the budget reading for the 2019/2020 fiscal year, the Treasury Cabinet Secretary underscored the government’s belief that the impressive economic growth momentum recorded in 2018 will be maintained this year. That is to say, the economic expansion will be close to … Continue reading Kenya Budget FY 2019/2020 – Unpacking some key pronouncements
Kenya’s economy is undoubtedly one of the most robust in the East African region. In the year 2018, the economy recorded an impressive 6.30% expansion, its fastest growth in nearly a decade, supported by agriculture and a vibrant service sector. A consequence of this economic growth has been rapid urbanization exacerbated by a growing middle … Continue reading Affordable Housing in Kenya – A beautiful facade?
Week ending 22nd March 2019 Pervasive and systemic risks stemming from the global economic downturn has contributed to a shift to easier monetary policy either in the form of delayed normalization or outright policy rate cuts. It was therefore no surprise when the US Federal Reserve and UK monetary policy committee (MPC) committed to keeping … Continue reading Economic Take: Monetary Policy, Interest Rates and Liquidity
I have been there and I am pretty sure we have all been there... What you may ask? Unnecessary spending that turn into costly habits. I have noted down my top costly habits based on my spending and perhaps these may resonate with you. COSTLY HABIT 1: Household Shopping I realized that I can waste … Continue reading Breaking Costly Habits
Last year, calls for monetary policy accommodation were on the rise given the need to prop up economic growth at a time of subdued business activity. However, the Central Bank’s reluctance could have been linked to its aversion towards the protracted electoral cycle and the capped interest rate environment that limited the effective transmission of monetary policy.
A better political landscape and improving macroeconomic variables has since improved investor sentiments towards the economy and could have also paved way for the much needed 50bps policy rate cut in March 2018. This was also complemented by prospects of a healthy global economy, rising commodity prices and a globally weak US dollar (y/y). It also looked more than likely that a policy rate cut would do more good than harm despite the capped interest rate environment.
That said, in its latest policy setting meeting this May, the monetary policy committee (MPC) left…
View original post 676 more words
Last year, calls for monetary policy accommodation were on the rise given the need to prop up economic growth at a time of subdued business activity. However, the Central Bank’s reluctance could have been linked to its aversion towards the protracted electoral cycle and the capped interest rate environment that limited the effective transmission of … Continue reading Kenya’s Monetary Policy Remains Limited
Lackluster performance in tax revenues has warranted the government to rethink its fiscal strategy in an effort to ease the reliance on public debt, particularly from the domestic market. To this, the government has revised its tax laws in an effort to enhance revenue collection for the fiscal year 2018/19. Most notable in the proposed Income … Continue reading Kenya: Tax bill adjustments amid government spending constraints – Is this the right call?
Walking down memory lane, I remember sitting in a career development class on one of those rare occasions I was in the university on a Friday afternoon. The adviser asked a question that has since stuck with me, ‘How much do you expect to earn post-graduation?’. She later clarified that she meant the starting salary. … Continue reading Salary vs Fulfillment in the 21st Century
Rwanda is a fairly small economy that has risen to prosperity after the genocide in the 1990s. That said, economic growth is expected to remain one of the highest in East Africa as the government looks to the domestic market to propel economic activity. Below are key highlights of the economy in 2018: As Rwanda … Continue reading Rwanda – the jewel of East Africa
Kenya's economic growth kept up with the expected slowdown with second quarter GDP growth (2017) at 5.00% compared to 6.30% in the second quarter of 2016. The slowdown in the agriculture, manufacturing, construction, transport and financial sectors largely contributed to the reduced activity. The agriculture sector was hard hit by poor crop harvest caused by … Continue reading The ‘Big Bad’ Kenyan Economy