By Anzetse Were The National Treasury has expressed concern over counties borrowing money domestically without permission from national government. In the 2014/15 Financial Year four counties borrowed a total of Sh1.9 billion, with Nairobi being the biggest borrower at Sh300 million. Technically, counties are only allowed to borrow from the domestic market to fund capital … Continue reading
By Anzetse Were Kenya is an import economy and the country’s journey as an import economy has made key flaws of this economic orientation evident. One clear problem is having a chronic and substantial Current Account Deficit, secondly government has to be hawk eyed about KES depreciation to keep import bills manageable, thirdly the country … Continue reading
By Anzetse Were The year 2015 was instructive for the Kenyan economy and government. So what is in store for the economy in 2016? There are key factors that will bolster economic growth as well as factors that may threaten growth. Inflation: Inflation started inching upward last year and reached 8 percent in December 2015, … Continue reading
By Anzetse Were This year has been an enlightening and tumultuous year for the Kenyan economy. Let’s take a look at fiscal policy and monetary policy action that defined the year. In terms of fiscal policy, the Kenyan government continued on its trajectory on increasing planned expenditure, widening fiscal deficits and increasing borrowing. According to … Continue reading
By Anzetse Were The World Trade Organisation (WTO) Ministerial Summit due to be held in Nairobi this week is important to Kenya for two reasons. Firstly, it’s the first WTO Summit to be held in Africa and secondly, it’s the first time the Summit is happened after what is largely considered to the failure that … Continue reading
By Anzetse Were Last week a slate of new taxes were effected increasing the prices of goods such as bottled water, cars, beers and cigarettes. Although these items can be viewed as luxury items rather than essential commodities, the tax hike calls Kenya’s tax policy into question. The government has made it clear that it … Continue reading
By Anzetse Were It is now well known that the Standard Gauge Railway (SGR) is being developed under the leadership of the Kenyan government and will connect Mombasa to Malaba (with a branch line to Kisumu) onward to Kampala, Kigali (with a branch line to Kasese) and Juba (with a branch line to Pakwach). What … Continue reading
By Anzetse Were It is widely known that China has been making significant inroads into Africa over the past two decades and a great deal of energy has gone into analyzing Sino-African economic interaction. However, another country has been making big moves yet barely any attention has gone into analyzing India’s growing footprint on the … Continue reading
By Anzetse Were There is an increasing expectation coming out of the USA that the Fed will raise interest rates in December this year. Many African economists have been keeping an eye on the Fed and with good reason as the rate raise is likely to have an effect on frontier markets. The precise effect … Continue reading
By Anzetse Were Over the past few weeks Kenya’s fiscal management has been under domestic and international scrutiny particularly with regards to the Eurobond. However, what has been lacking in the conversation is a look at Kenya’s overall fiscal policy and how it has informed the articulation of the economy. There are three core anchors … Continue reading