Home > Insights > The International Monetary Fund (IMF) reported that the size of Kenya economy is projected to reach 10.1 TR KES (99.99 BN USD) in 2019.
Tuesday, 16 Apr 2019

The International Monetary Fund (IMF) reported that the size of Kenya economy is projected to reach 10.1 TR KES (99.99 BN USD) in 2019.


Insights Africa

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Economic Outlook

Economic Outlook

  • The International Monetary Fund (IMF) reported that the size of Kenya economy is projected to reach 10.1 TR KES (99.99 BN USD) in 2019. Kenya GDP is also estimated to increase by 1.1 TR KES (10.89 BN USD) in 2019 compared to 9 TR KES (89 BN USD) in 2018.
  • In Kenya, the Ministry of Industry and Trade banned the importation of vehicles and spare parts in order to create jobs in local car assembly plants that are currently operating at only 16% capacity, producing an estimated 5,000 vehicles per annum against installed capacity of 34,000 cars.
  • The price of Kenyan coffee is still decreasing hitting the lowest point recorded in 2019 on shedding 15% at the weekly sale. The 50 kg bag of coffee fetched 9,800 KES (97 USD) compared to 11,500 KES (113.8 USD) in the previous sale.
  • Nairobi industrial area is facing challenges such as poor infrastructure and high land costs which have made investment in this area increasingly difficult, pushing developers to seek sites elsewhere around the city.
  • Rwanda is very aware that it won't meet its Vision 2020 goal. As a result, authorities have extended their development deadline to 2035. Moreover, the World Bank is estimating that at the current rate of growth, Rwanda will barely cross the threshold for lower middle-income status by 2035.
  • Tanzania has agreed on 100 BN KES (1.7 BN USD) financing deal with the World Bank to fund various projects in 2019/2020. The agreement, which is comprised of low-interest loans and grants, includes 400 MM USD loan for education and 300 MM USD for poverty reduction program.
  • The IMF has projected that Zambia economic growth will fall to 2.9% in 2020 compared to 3.1% targeted in 2019. It is projected that inflation will jump to 12.0% in 2020 after reaching 10.7% in 2019.
Political Events

Political Events

  • Kenyan tourism investors have protested Washington's decision to start running the kidnapping risk on Kenya when assessing the safety of travelling U.Scitizens.
  • A high-level trade delegation will be coming to Zimbabwe from Mauritius to engage the country's business community for stronger trade relations between the two countries for 2 days, 15 and 16 April.
Stock Market

Stock Market

  • "The Amazon of Africa" has finally sealed the deal with an IPO round reaching 200 MM USD for its listing on the New York Stock Exchange. The largest e-commerce operator in Africa, Jumia Technologies, ended its first day of trading with its stock up more than 75.6% reaching 25.46 USD per share, above the opening price of 14.50 USD at the NYSE on Friday. It has a market cap of about 3.9 BN USD.
  • President Museveni has asked that all telecom operators in the country publicly list on stock exchange so that Ugandans can own shares in the companies.
Companies Transactions

Companies Transactions

  • Logistics-cum-e-commerce operator Copia has entered Kenya with a 2 BN KES (19.8 MM USD) investment in warehouses and network establishment. Copia will deal in personal care, household, electronics, energy, beauty, baby, health, school, transport, construction and farm inputs.
  • Employees of Commercial Bank of Africa Group (CBA) are set to emerge with a 1.32% stake worth 870 MM KES (8.6 MM USD) in the merger between the lender and rival NIC Group. NIC will be the vehicle to house the ownership of the merged entity in which CBA will take a 53% stake.
  • The Equity bank tending to give its workers 205.7 million ordinary shares worth around 8.6 BN KES (85.15 MM USD). The shares are also equivalent to 5% of the issued share capital of the company.
  • The Kenyan government is planning to merge the national carrier, Kenya Airways, with the Kenya Airports Authority (KAA). The government is exploring alternative options to improve the fortunes of the airline and the country's aviation sector.
  • Heavy losses wiped out Spire Bank's capital in 2018, making it the only lender in Kenya operating with a negative asset base of 1 BN KES (9.9 MM USD) and exposing 6.6 BN KES (65.3 MM USD) worth of customer deposits to risk.
  • More than 2,000 Sony Sugar company workers have held demonstrations on the streets in Awendo, Migori County, demanding their unpaid salaries which worth around 100 MM KES (990,000 USD).
  • The Bank of Uganda assures Post Bank customers and the general public that Post Bank Uganda Limited is strong, safe and all its services will continue uninterrupted at all its branches.

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