Overview

The Kenyan bourse remains a leader with new investment products and regulatory support
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Kenya’s stock exchange has played a vital role in the expansion of the nation’s economy for six decades. In terms of market capitalisation, it is the leading bourse in the East African region. As well as being a founding member of the African Securities Exchanges Association and the East African Securities Exchanges Association (EASEA), the bourse was promoted from affiliate to full member of the…

Overview

Optimism grows as Kenyan retailers adapt to change
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The retail sector in Kenya has faced a number of challenges in recent years. The collapse of two of its main supermarket chains dealt a major blow to the sector, affecting mall footfall and supplier’s balance sheets, and taxing goodwill. However, with the economy strengthening, foreign investors entering the local retail market and the middle class continuing to grow, prospects remain positive. Conversely,…

Overview

Kenya places increased focus on manufacturing to drive industrial growth
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After a challenging 2017, the industrial sector has started to show signs of recovery, suggested by improved output figures. The turnaround came about at the end of 2017, as the sector continues to focus on longer-term prospectives and transforming itself into a key driver of economic activity. A Slow Start Before Kenya gained independence in 1963, official British policy deterred the development…

Overview

Increased capital investment adds to Kenya's energy offerings
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A stable and expanding energy supply is central to Kenya’s ambition to establish itself as an industrialised middle-income country, as set out in its Vision 2030 development strategy. The nation is fortunate in its energy mix: hydro, geothermal, solar and wind energy already play a significant role in power generation, and – particularly in the case of geothermal – there is room for further expansion.…

Overview

Kenya to maintain its position as an international transit hub with multi-modal developments
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Transport and logistics are at the core of Kenya’s economic narrative due to the country’s role as a trans-shipment hub for goods moving to landlocked countries in East and Central Africa. The Port of Mombasa (PoM) is located on international container routes, serving as a well-integrated landing port for regional shipping networks, while land connectivity has also become a major focus, with a…

Overview

Rapid expansion of the global aviation industry propels investment efforts
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The aviation sector is experiencing rapid growth worldwide, propelled by booming tourism industries, lower air fares and the push for greater connectivity in an increasingly globalised economy. Middle-class expansion has also spurred growth in air travel, as more people are able to afford flights for holidays or business-related travel. According to Boeing, commercial airlines experienced annual average…

Overview

Kenya increases insurance offerings to double penetration rates
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With its large population, diverse economy and an insurance penetration rate of less than 3% of GDP in the first quarter of 2018, compared to a global average of more than 6%, Kenya holds significant promise as an insurance arena. Recent years have seen the government and the industry regulator attempt to realise this potential: key measures have included the localisation of marine insurance business,…

Overview

Emerging markets benefit from reinsurance programmes to protect against natural disasters
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While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries…

Overview

Kenyan banks embrace consolidation and digitalisation
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The past year has been a challenging one for Kenya’s banks. As the full-year results for 2017 began to emerge, the effects of a new cap on lending interest rates become apparent, with most banks reporting reduced margins and profitability. A tighter lending environment, however, has encouraged banks to find alternative routes to revenue. Technological innovation, in particular, has received a fresh…

Overview

Kenya grows as a key political and economic player in the region
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As the largest economy in the EAC and COMESA in terms of GDP, Kenya has positioned itself as a major economic power in the region and across sub-Saharan Africa. Traditionally a largely agrarian economy, Kenya has quickly entrenched its position as a manufacturing, logistical and technology hub in the region. As a market-based economy with a supportive domestic policy environment, Kenya has been dubbed…