Home > Insights > The Kenyan government revenues in the first nine months of 2019/2020 decreased by 97.7 BN KES (966 MM USD)
Tuesday, 14 May 2019

The Kenyan government revenues in the first nine months of 2019/2020 decreased by 97.7 BN KES (966 MM USD)


Insights Africa

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Economic Outlook

Economic Outlook

  • The Kenyan government revenues in the first nine months of 2019/2020 decreased by 97.7 BN KES (966 MM USD), prompting the Treasury to cut budgeted funds for development projects by nearly 34.37 BN KES (339.9 MM USD).
  • In Kenya, private contractors will finance the upgrade of the old meter gauge railway (MGR) between Naivasha and the Malaba border and will also build a new line connecting to the Standard Gauge Railway (SGR) at a total estimated cost of 21 BN KES (207.6 MM USD).
  • Coast counties of KwaleKilifi and Mombasa have allocated a total of 628 MM KES (6.2 MM USD) to the fishing sector. Noting that Kwale has allocated a total of 30 MM KES towards fisheries development, Kilifi allocated 112 MM KES while Mombasa allocated 486 MM KES towards agriculture.
  • Uganda government has suspended its deal with Russian consortium RT Global Resources to build a 4 BN USD oil refinery and has invited alternative bids from a South Korean group.
  • Minister of Energy and Mineral Development, Irene Muloni, has announced the second round of competitive bidding for five new blocks in the Albertine Graben in Uganda.
  • Uganda growth in Q1-2019 has been characterized by falling export earnings, rising inflation and a slowdown in private sector credit growth.
  • Zambia has delayed the receipt of loans totaling 2.6 BN USD contracted in 2018 in order to limit its soaring debt. Noting that Zambia external debt in Q1-2019 increased reaching 10.178 BN USD compared to 10.05 BN USD at the end of 2018.
  • In Rwanda, the ministry of agriculture and relevant institutions had requested 272.58 BN RWF (300.6 MM USD) for the development of the sector in 2019/2020, but only 121 BN RWF (133.45 MM USD) has been appropriated to the sector.
Political Events

Political Events

  • China ambassador, Lie Jie, has stated that his country has provided 50,000 employment opportunities to Zambians after having 30 Zambians engaged in Chinese enterprises receiving outstanding performance awards from the ambassador.
  • The United States is impressed by the economic policies being implemented by Zimbabwe Finance and Economic Development Minister Mthuli Ncube. However, the Americans have called for political reforms and the bringing to justice of security forces responsible for the brutal crackdown on protesters in January.
Stock Market

Stock Market

  • East Africa's stock markets stayed on the downward path in Q1-2019 as local investors stayed away from the equity market and moved into government bonds to prevent value loss with the falling share prices.
  • Nigerian capital market authorities have created a new platform for listing of newly established companies and small and medium enterprises (SMEs) which accounted for more than 90% of businesses in Nigeria and provide about 85% of employment.
Companies Transactions

Companies Transactions

  • The International Finance Corporation will invest 5 BN KES (50 MM USD) in private equity firm Helios Investors which is seeking to raise a total of 126 BN KES (1.25 BN USD) by September 2019 targeting to deploy the capital in medium to large companies in which it will take minority to controlling stakes across Africa.
  • Stanbic Bank reported a 19.3% jump in net earnings in Q1-2019, helped by increased lending and higher income from fees and commissions. The lender's net profit reached 2.2 BN KES (21.7 MM USD) in Q1-2019 compared to 1.9 BN KES (18.7 MM USD) in Q1-2018.
  • Spanish delivery firm Glovo raised 17 BN KES (169 MM USD) in new funding that will partly go towards growing its African footprint and expanding its delivery portfolio.
  • NIC Bank and Commercial Bank of Africa want to make a statement through their merger deal and so is Co-operative Bank Group. Moreover, Mauritian lender SBM Bank acquired Fidelity Bank then carved out assets from collapsed Chase Bank where it booked a 3.82 BN USD bargain gain.
  • Blencowe Resources PLC has signed heads of terms for the acquisition on the Consolidated African Resources Uganda Ltd, a subsidiary of Consolidated Africa Ltdfor 2.0 MM GBP (2.6 MM USD).
  • Zimbabwe mobile operatorsEconetNetone and Telecel all increased their data tariffs to keep up with the benchmark US dollar as the Real Time Gross Settlement (RTGs) dollar value keeps declining.
  • One of Zimbabwe largest clothing retail stores, Edgars Stores Limited declared a dividend of 0,5 RTGs$ per share to shareholders while FBC Holdings Limited, a financial institution which provides financial products for retail, commercial and corporate banking declared a dividend of 0,9 RTGs$ per share to its shareholders.

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