Author: James Wambua
Ruto’s financial incentives for manufacturers and farmers
Prof. Njuguna Ndung’u, the Treasury Cabinet Secretary, has outlined a variety of initiatives to revive Kenya’s struggling manufacturing sector and encourage farmers to increase their output. President William Ruto’s administration has targeted manufacturing and agriculture as industries for reforms that might spur economic growth and the creation of jobs for the young since taking office in September of last year. According to the Economic Survey 2023, the agricultural sector in Kenya continues to be the foundation of the nation’s economy, contributing an average of 21.4 percent of GDP directly and up to 33.0 percent indirectly. However, due to a lack of government action and problems…
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Equity buys Rwanda’s Cogebanque for Sh6.7 billion
Regional bank Equity Group will purchase the majority stake in Rwanda-based lender Cogebanque for a total cash payment of Kes6.7 billion (about $48.1 million). The Compagnie Generale de Banque (Cogebanque), often known as Cogebank, is the fifth largest commercial bank in Rwanda. On Wednesday, Kenya’s Equity Bank stated that it has entered into a legally binding agreement to purchase 91.93 percent of the outstanding share capital of Cogebank. Dr James Mwangi, Group Managing Director and CEO, Equity Group Holdings Plc said, “Rwanda’s five-year average GDP growth rate at 6.5 percent ranks it amongst the 10 fastest growing countries in the world.” He added, “Rwanda’s economic…
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IFC secures stake in Safaricom Ethiopia
The World Bank’s private sector lending arm International Finance Corporation (IFC) and MIGA have secured a stake in Safaricom Ethiopia. The deal, which will be in the form of equity, loan, and guarantees is tailored to support the ongoing setup of Safaricom Ethiopia’s greenfield telco network. IFC will make a $157.4 million equity investment in Global Partnership for Ethiopia BV and a $100 million A-loan to its wholly-owned subsidiary, Safaricom Ethiopia. Following the transaction, IFC will hold a minority position in Safaricom Ethiopia. “IFC is delighted to announce its support to Safaricom Ethiopia, the first private sector-led telecoms operator in the country, and its parent…
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IFAD-EU deal seeks faster digital remittances to rural Kenya
The UN International Fund for Agricultural Development (IFAD) and the European Union have unveiled two new initiatives today in Kenya that aim at boosting rural development by making the use of digital remittance flows faster, safer and cheaper. The collaboration will focus on cutting transaction costs, and promoting financial inclusion in rural areas. To further the reach in rural areas, the initiative will leverage the power of Savings and Credit Cooperative Organizations (SACCOs). Under the EU-funded PRIME Africa initiative, IFAD has allocated two grants to Credit Bank and Financial Sector Deepening Kenya (FSD Kenya). The grant projects aim to empower rural communities and stimulate economic…
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Government laying digital traps to tax virtual music
The word music appears just once in Kenya’s 510-page Economic Survey 2023, perhaps an indication of the loud but minuscule role the segment plays in the country’s economy. Despite its enormous potential, the music industry remains a footnote in Kenya’s economy only featuring lumped under the broad arts, entertainment, and recreation segment. The survey statistics show that the arts, entertainment, and recreation GDP contributed Kes28 million to Kenya’s wealth last year. Although the music industry is struggling in Kenya, signs of success have began streaming in as Kenyan artists push through digital platforms in search of the Afrobeat and Amapiano success, and the taxman cannot…
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