Home > Insights > The value of Kenya exports to East African markets hit a three-year increase in first eight months of 2019
Tuesday, 15 Oct 2019

The value of Kenya exports to East African markets hit a three-year increase in first eight months of 2019


Insights Africa

$ti2
Economic Outlook

Economic Outlook

  • The value of Kenya exports to East African markets hit a three-year increase in first eight months of 2019. Earnings from goods sold to UgandaTanzania and Rwanda reached 77.32 BN KES (744.9 MM USD) in the January-August, a 5.98% growth compared to 72.99 BN KES (703.2 MM USD) in same period in 2018.
  • In Kenya, Real estate sector growth remained largely flat in Q3-2019 with rental yields in the commercial office and retail sectors decreasing by 0.1% and 0.2% respectively. Noting that the residential sector remained also flat at 4.9% in the period under review.
  • In Kenya, most bank customers are increasingly preferring insurance-linked investments more than bank savings as the products offer more stable returns in the long term.
  • The Bank of Uganda (BoU) has decided to reduce the Central Bank Rate (CBR) by 1% point to 9% in order to encourage banks to lend to the private sector at a lower rate.
  • The United Kingdom is keen to encourage more of its tourists to visit Tanzania and enjoy its rich natural attractions noting that the UK is the second leading source of tourists to Tanzania annually after the United States.
  • The World Bank reported that Ghana is among the fastest-growing economies in the world. The other countries are EthiopiaRwanda and Cote d'Ivoire. Noting that the four countries, which are currently experiencing 7% economic growth, are also the four fastest-growing economies in Africa.
  • The Zambian Government is keen to improve its electronic tax administration processes and interfaces and ensure improved synergies with customs authorities to better manage VAT refund claims in 2020 budget. Further, it will become mandatory for businesses to use electronic fiscal devices.
  • According to the Public Accountants and Auditors Board (PAAB), Zimbabwe has entered into hyperinflation for the second time in two decades. Noting that Zimbabwean entities must now apply IAS 29 in their financial reporting.
  • Namibia launched the Infrastructure Development and Investment Fund aimed at mobilizing financial resources for infrastructure for a range of sectors in the country. The country aims to raise about 1.5 BN NAD (100.26 MM USD) in total.
Political Events

Political Events

  • The prime minister of EthiopiaAbiy Ahmed, who signed a peace deal with Eritrea last year, has won the 2019 Nobel peace prize. The award recognized Abiy's efforts to achieve peace and international cooperation, and his decisive initiative to resolve the border conflict with neighboring Eritrea.
  • Russian President Vladimir Putin is set to meet again with President Uhuru Kenyatta on 23-24 October 2019 in Sochi, Russia by inviting Mr. Kenyatta to attend the Russia-Africa political summit and the accompanying Russia-Africa Economic Forum in order to a strategic bilateral partner in the East African trading bloc.
Stock Market

Stock Market

  • The Dar es Salaam Stock Exchange (DSE), 21-domestic market capitalization has increased by 1% in a quarterly basis as stock prices declined. The DSE's Tanzania Stock Index (TSI), that measures the depth of local listed firm increased from 9.17tri/-in Q3-2019 from 9.08tr/-in Q2-2019.
  • KCB Group Plc has listed an additional 142,979,717 shares at the Nairobi Securities Exchange (NSE) following the successful acquisition of the National Bank of Kenya (NBK).
Companies Transactions

Companies Transactions

  • President Paul Kagame of Rwanda officially opened a smartphone manufacturing plant in the East African country. The factory has been built by an African smartphone brand, Mara Phones, which forms part of the Mara Group of companies. The smartphone factory is reported to have the capacity to manufacture more than 2 million smartphones in one calendar year.
  • Qatar Airways is solidifying its aviation presence in the African market by purchasing shares in Rwanda national airline, RwandAir, to counter its current problems with its Gulf neighbors.
  • Equity Group will get a 13 BN KES (125 MM USD) discount on its purchase of four banks in Rwanda, Zambia, Mozambique and Tanzania from a London-listed investment group offering 6.72% of its shares worth 10.9 BN KES (105 MM USD) to Atlas Mara, meaning that the valuation of the four banks dropped by more than half.
  • In Kenya, the restaurant chain Java House is set to open 14 more express branches by June 2020 targeting institutions such as hospitals and colleges as it shifts to kiosks formats that are less capital-intensive. The firm is targeting to hit about 100 branches by the end of 2020.
  • Equity Bank is taking over a total of 2 BN KES (19.26 MM USD) worth of loans that had been advanced to East African Cables by various lenders, including Standard Chartered Bank (Kenya) and Ecobank Kenya Limited.
  • Debroso Construction Company Ltd., a little-known construction company has been awarded a 1 BN KES (9.6 MM USD) contract to maintain a section of the Nairobi- Thika Highway which cost 31 BN KES (298.6 MM USD) under the control of the Kenya National Highways Authority (Kenha).
  • Diamond Trust Bank (DTB) has teamed up with African payment services provider DPO Group, and Mastercard, to launch a virtual payment card in Kenya and Tanzania. Known as the DPO Virtual Card, the new offering will facilitate business to business (B2B) payment without having to use a physical credit card, debit card or bank account.
  • Agricultural Marketing Cooperative Societies (Amcos) plans to open three coffee processing factories in Shinyanga, Simiyu and Geita regions, Tanzania to support President John Magufuli's ambitious industrialization country objective.

Dubai

Office No. N307, North Tower,
Emirates Financial Towers, DIFC, Dubai, UAE
P.O Box: 506726
Tel: +9714 351 8187
info@multiplesgroup.com

Cairo

Zepter Office Building,
S5-6, Area 5, District 1, New Cairo, Egypt.
P.O Box: 11477
info@multiplesgroup.com

Nairobi

Kenya Block C, Ground Floor, Fortis Office Park Muthangari
Dr Westlands, Nairobi, Kenya
Tel: +254 20 5148174
P.O. Box: 66488-00800

BETA