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Kenya Economy Watch
Rank: Member Joined: 7/1/2009 Posts: 256
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Is there no end to the SME sector woes?
First it gets beaten black and blue by the unintended consequences of the Rate Cap Law.
While still down, it then gets kicked in the jewels by Covid related business shutdowns.
It can barely stand back up, yet we are now slapping it with the minimum Tax on Turnover, not to mention numerous recently introduced license fees that set high entry barriers.
Could it be that some interested parties are deliberately killing it off? Perhaps the multinationals, or the local billionaires?
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Monk wrote:Is there no end to the SME sector woes?
First it gets beaten black and blue by the unintended consequences of the Rate Cap Law.
While still down, it then gets kicked in the jewels by Covid related business shutdowns.
It can barely stand back up, yet we are now slapping it with the minimum Tax on Turnover, not to mention numerous recently introduced license fees that set high entry barriers.
Could it be that some interested parties are deliberately killing it off? Perhaps the multinationals, or the local billionaires?
Laws of power To rule people totally and have full control, weaken them economically first then make them desperate and vulnerable Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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https://www.standardmedi...-steel-firm-hits-a-snag
Athi River steel under receivership Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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https://youtu.be/JqaWy7HjIE4
Kenya has a cashflow problem Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Moody Report -Negative 2021 outlook for Nigeria 🇳🇬, South Africa, Kenya and entire Sub-Saharan African region as debt costs will intensify post pandemic "Most Sub saharan african governments' debt burdens will stabilize at materially higher levels in 2021 with the average debt burden for the region at around 64% of GDP in the near to medium term "says Kelvin Dalrymple, VP & Senior Credit Officer Report's Highlights -Tourism dependent economies like Kenya, Mauritius and Tanzania will particularly see a slow recovery -Low domestic revenue mobilization will continue to plaque SSA sovereigns particularly Nigeria, Ethiopia 🇪🇹 and Ghana 🇬đź‡. "Contingent liabilities from state owned enterprises also pose additional risk." "We do not expect debt burdens to come down in the foreseeable future as revenue generation capacity remains weak.Higher debt loads, lower government revenue and higher interest costs will increasingly challenge debt affordability. -Shock to export and foreign exchange generating sectors will continue to weigh on current account imbalances. -External vulnerability stress will rise as foreign reserves decline, further exacerbating economic challenges Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/1/2009 Posts: 256
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https://www.businessdail...illion-dividend-3256514
Interesting that CBK put a freeze on Dividend payments so that the Banks can weather the Covid storm, yet some of them are still spending cash making acquisitions during this "tough period".
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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Monk wrote:https://www.businessdailyafrica.com/bd/markets/capital-markets/bank-investors-to-miss-sh33-billion-dividend-3256514
Interesting that CBK put a freeze on Dividend payments so that the Banks can weather the Covid storm, yet some of them are still spending cash making acquisitions during this "tough period". I think KCB/NBK and Coop/JBB were CBK engineered. I&M is looking at $23mn which is reasonable for I&M which has a modest dividend payout. It seems this discussion was on for a while. Equity cancelled the dividend and that was equivalent to the BCDC purchase. Cash neutral. We know this deal was going on for a while. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 7/1/2009 Posts: 256
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VituVingiSana wrote:Monk wrote:https://www.businessdailyafrica.com/bd/markets/capital-markets/bank-investors-to-miss-sh33-billion-dividend-3256514
Interesting that CBK put a freeze on Dividend payments so that the Banks can weather the Covid storm, yet some of them are still spending cash making acquisitions during this "tough period". I think KCB/NBK and Coop/JBB were CBK engineered. I&M is looking at $23mn which is reasonable for I&M which has a modest dividend payout. It seems this discussion was on for a while. Equity cancelled the dividend and that was equivalent to the BCDC purchase. Cash neutral. We know this deal was going on for a while. Clearly CBK need not worry about KCB's liquidity. I just hope the acquisitions they are going after in DRC and Ethiopia will translate to capital gains, to make up for lost Dividends.
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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https://nation.africa/ke...-grind-to-a-halt-3257836Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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VituVingiSana wrote:Monk wrote:https://www.businessdailyafrica.com/bd/markets/capital-markets/bank-investors-to-miss-sh33-billion-dividend-3256514
Interesting that CBK put a freeze on Dividend payments so that the Banks can weather the Covid storm, yet some of them are still spending cash making acquisitions during this "tough period". I think KCB/NBK and Coop/JBB were CBK engineered. I&M is looking at $23mn which is reasonable for I&M which has a modest dividend payout. It seems this discussion was on for a while. Equity cancelled the dividend and that was equivalent to the BCDC purchase. Cash neutral. We know this deal was going on for a while. There is money that is spent on buying then there is also rebranding, capitalization,integration costs. So equity will spend more than the ksh.9.5bn. Coop will also spend money on recapitalization,rebranding of Kingdom bank having spent ksh.1bn on the acquisition. KCB/NBK talks have been going for a while.Talks started in 2016. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 11/13/2015 Posts: 1,589
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Things are looking up  Quote:Evidence of real economic recovery from the Covid-19 pandemic has started to manifest itself, with the Kenya Revenue Authority (KRA) for the first time surpassing its revenue collection target in December. Some of KRA's departments have recorded the highest collections ever, making the authority believe that the country is finally shedding the pandemic off the economy. Since the onset of Covid-19 in March last year, KRA has been experiencing revenue shortfalls, resulting in missing collection targets by Sh186.3 billion between March and November 2020. This was largely due to the slow economy caused by the pandemic, and the consequent containment measures that saw thousands of businesses closed, workers sent home and generally the economy hit a stand still. But in its report for the December 2020 revenue performance, KRA has posted results with prospects of a recovering economy, with the performance improving at the rate of 101.3 per cent https://nation.africa/ke...conomy-recovers-3259460
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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wukan wrote:Things are looking up Quote:Evidence of real economic recovery from the Covid-19 pandemic has started to manifest itself, with the Kenya Revenue Authority (KRA) for the first time surpassing its revenue collection target in December. Some of KRA's departments have recorded the highest collections ever, making the authority believe that the country is finally shedding the pandemic off the economy. Since the onset of Covid-19 in March last year, KRA has been experiencing revenue shortfalls, resulting in missing collection targets by Sh186.3 billion between March and November 2020. This was largely due to the slow economy caused by the pandemic, and the consequent containment measures that saw thousands of businesses closed, workers sent home and generally the economy hit a stand still. But in its report for the December 2020 revenue performance, KRA has posted results with prospects of a recovering economy, with the performance improving at the rate of 101.3 per cent https://nation.africa/ke...conomy-recovers-3259460
Lubbish. We are on the verge of defaulting on debt repayments till treasury had to seek debt relief from the Paris club. A week when Ukur Yattani told governors there is no money that's why there is a delay in disbursement. Treasury is now trying to convince China to give us a debt relief/moratorium on Kenya's debt repayments. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 11/13/2015 Posts: 1,589
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Ericsson wrote:
Lubbish.
We are on the verge of defaulting on debt repayments till treasury had to seek debt relief from the Paris club.
A week when Ukur Yattani told governors there is no money that's why there is a delay in disbursement.
Treasury is now trying to convince China to give us a debt relief/moratorium on Kenya's debt repayments.
If GoK is on the verge of defaulting why are fund managers pumping more cash to a potential defaulter? Quote:Pension funds have raised their holding in government debt past the Sh1 trillion mark for the first time ever, new data shows, on the back of volatility in the securities market. The returns-chasing funds doubled their investments in government securities in the six months to December 31, stashing in Sh133.33 billion compared to Sh52.29 billion in a similar period of the previous year — an equivalent of a 154.98 percent jump. The aggressive investment lifted retirement schemes’ holding to nearly Sh1.04 trillion as at end of last month from about Sh923.17 billion in June, the Central Bank of Kenya (CBK) statistics show. https://www.businessdail...1-trillion-mark-3260198
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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wukan wrote:Ericsson wrote:
Lubbish.
We are on the verge of defaulting on debt repayments till treasury had to seek debt relief from the Paris club.
A week when Ukur Yattani told governors there is no money that's why there is a delay in disbursement.
Treasury is now trying to convince China to give us a debt relief/moratorium on Kenya's debt repayments.
If GoK is on the verge of defaulting why are fund managers pumping more cash to a potential defaulter? Quote:Pension funds have raised their holding in government debt past the Sh1 trillion mark for the first time ever, new data shows, on the back of volatility in the securities market. The returns-chasing funds doubled their investments in government securities in the six months to December 31, stashing in Sh133.33 billion compared to Sh52.29 billion in a similar period of the previous year — an equivalent of a 154.98 percent jump. The aggressive investment lifted retirement schemes’ holding to nearly Sh1.04 trillion as at end of last month from about Sh923.17 billion in June, the Central Bank of Kenya (CBK) statistics show. https://www.businessdail...1-trillion-mark-3260198
They will default on concessional debt. Commercial debt they will continue to pay for fear of a sovereign downgrade. That's why they have negotiated with Paris club,World Bank,IMF,Chinese government for a relief. The Euro bond holders whose debt is private they will continue repaying. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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https://www.businessdail...54pc-in-december-3271288Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 11/13/2015 Posts: 1,589
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Quote:CBK Governor Patrick Njoroge (pictured) yesterday singled out the manufacturing sector for reporting figures that are inconsistent with government economic indicators.
“We saw the leading economic indicators have been very strong in the manufacturing sector,” he said.
“However, the numbers that are reported by the sector are quite low and there’s a problem there. Something needs to be aligned.”
Manufacturing output for the third quarter of last year stood at Sh116 billion, down from Sh120 billion in 2019 even as KNBS indicated that production of edible fats and oils, cigarettes, cement, iron sheets and motor vehicle assembly all recorded positive growth.
“The purchasing managers index (PMI) reported by one of the banks also points to a very dynamic manufacturing sector and we should also say that if agriculture is doing well, agro-processing should generally also be doing well,” he said yesterday during a virtual press briefing.
“These indicators point to strong outcomes in the manufacturing sector but some of the numbers reported by the sector about their performance don’t align themselves with these developments.”
https://www.standardmedi...ta-on-economic-recovery
What you do with this information is up to you
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Rank: Chief Joined: 1/3/2007 Posts: 18,097 Location: Nairobi
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wukan wrote:Quote:CBK Governor Patrick Njoroge (pictured) yesterday singled out the manufacturing sector for reporting figures that are inconsistent with government economic indicators.
“We saw the leading economic indicators have been very strong in the manufacturing sector,” he said.
“However, the numbers that are reported by the sector are quite low and there’s a problem there. Something needs to be aligned.”
Manufacturing output for the third quarter of last year stood at Sh116 billion, down from Sh120 billion in 2019 even as KNBS indicated that production of edible fats and oils, cigarettes, cement, iron sheets and motor vehicle assembly all recorded positive growth.
“The purchasing managers index (PMI) reported by one of the banks also points to a very dynamic manufacturing sector and we should also say that if agriculture is doing well, agro-processing should generally also be doing well,” he said yesterday during a virtual press briefing.
“These indicators point to strong outcomes in the manufacturing sector but some of the numbers reported by the sector about their performance don’t align themselves with these developments.”
https://www.standardmedi...ta-on-economic-recovery
What you do with this information is up to you  In Russia, at one point the factories produced more numbers than real goods to ensure the managers didn't lose their heads! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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https://www.theeastafric...oliday-extension-3272644Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 7/1/2009 Posts: 256
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https://www.businessdail...m-farmers-price-3280152
Considering the fall in production levels of pyrethrum, coffee, cashew nuts, maize and several other agricultural produce over the years, here is a positive move to forestall the same befalling the dairy sector.
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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https://www.kenyans.co.k...-fire-thousands-employeeWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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