The largest economy in the EAC, Kenya is a major player in both the region and sub-Saharan Africa as a whole. Over the past few decades its market has transformed from being largely agrarian into one of the most diversified and innovative on the continent, even developing a thriving technology sector that some have dubbed the Silicon Savannah. A new constitution that went into effect in 2010, following…
The country’s politics have changed markedly since the introduction of a new constitution in 2010. The final document, which had been debated in parliament for the greater part of two decades, has ushered in a more decentralised political system and structure that is meant to make the government more democratically accountable and responsive to the needs of citizens. While some issues are still…
Kenya’s banking sector benefits from healthy fundamentals – a result due in large part to the Central Bank of Kenya’s (CBK) prudent regulatory oversight – which in turn has ensured steady growth in lending and assets, and strong performances for listed creditors. However, 2016 provided the sector with its fair share of challenges to navigate. Another bank closure – the third in two years…
The capital markets in Kenya have witnessed many years of sustained and rapid growth. This performance, phrased as one investor as “Africa in fifth gear”, reflects the broader macroeconomic fundamentals of the country’s economy, which is set to strengthen further in 2017 as a result of ongoing government spending on infrastructure and the recovery in tourism. Both the IMF and the National Treasury…
Interview:Lamin Manjang, Joyce-Ann Wainaina and Jeremy Awori In light of the recent challenges, how would you evaluate performance in the banking sector? LAMIN MANJANG: I think that the speed to which Imperial, Chase and Dubai Bank were put into receivership by the Central Bank of Kenya (CBK) has raised a lot of concerns about the health and stability of the banking sector in Kenya; it started…
A young population with rapidly rising purchasing power forms a solid base from which the Kenyan insurance market can grow. While penetration remains relatively low, it is in line with most countries in the region and creates a welcoming, innovative environment for industry players. In 2016 Kenya was ranked as one of Africa’s most mature insurance markets, with growth forecast at 6% a year, according…
Under the auspices of the overarching Vision 2030 economic development plan, industrialisation remains a top priority for the Kenyan government, with the sector recording steady growth in 2015 against a backdrop of falling energy and input prices, lending an optimistic outlook for 2017 and beyond. The food and beverage segment continues to dominate, leading growth in 2015 as a result of surging beverage…
Kenya is a constitutional democracy with a multi-party political system. In 2008 the government launched Vision 2030, a development blueprint for the country with the aim of turning Kenya into a middle-income economy by 2030. Vision 2030 is based on three pillars, namely an economic pillar, a social pillar and a political pillar. The economic pillar aims to achieve an average GDP growth rate of 10%…
The retail sector in Kenya is benefitting from rising middle-class purchasing power, robust macroeconomic growth and a surge of investment in high-end formal retail space, with a host of foreign retailers, brands and producers entering the market. Although well-entrenched local players remain dominant in the supermarket segment, the entrance of France’s Carrefour in 2016 marked an increase in competition…
Even amidst a broader downturn in many African markets, Kenya has consistently been one of sub-Saharan Africa’s most reliable performers. It was the sub-Saharan Africa’s fifth-largest economy in 2015 behind Nigeria, South Africa, Angola and Sudan, ranked 11th in inward foreign direct investment and is one of the few countries in Africa that is not primarily dependent on extractive revenues. This…
