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Kenya Economy Watch
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Monk
#2581 Posted : Tuesday, January 05, 2021 3:05:48 PM
Rank: Member

Joined: 7/1/2009
Posts: 272
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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Ericsson
#2582 Posted : Tuesday, January 05, 2021 9:52:06 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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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  | | Edit by user: Tuesday, January 05, 2021 9:53 PM | Reason: Not specified
Ericsson
#2583 Posted : Friday, January 08, 2021 6:14:44 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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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Ericsson
#2584 Posted : Wednesday, January 13, 2021 6:01:46 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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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Ericsson
#2585 Posted : Wednesday, January 13, 2021 6:17:36 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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 🇬🇭.

"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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Monk
#2586 Posted : Thursday, January 14, 2021 9:52:43 AM
Rank: Member

Joined: 7/1/2009
Posts: 272
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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VituVingiSana
#2587 Posted : Thursday, January 14, 2021 11:30:57 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,342
Location: Nairobi
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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Monk
#2588 Posted : Thursday, January 14, 2021 3:30:15 PM
Rank: Member

Joined: 7/1/2009
Posts: 272
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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Ericsson
#2589 Posted : Friday, January 15, 2021 12:21:11 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
https://nation.africa/ke...-grind-to-a-halt-3257836
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#2590 Posted : Saturday, January 16, 2021 8:42:48 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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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wukan
#2591 Posted : Sunday, January 17, 2021 11:02:00 AM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,652
Things are looking upApplause

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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Ericsson
#2592 Posted : Sunday, January 17, 2021 11:19:35 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
wukan wrote:
Things are looking upApplause

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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wukan
#2593 Posted : Monday, January 18, 2021 8:25:58 AM
Rank: Veteran

Joined: 11/13/2015
Posts: 1,652
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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Ericsson
#2594 Posted : Monday, January 18, 2021 8:55:59 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
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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Ericsson
#2595 Posted : Thursday, January 28, 2021 12:01:28 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
https://www.businessdail...54pc-in-december-3271288
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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