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Recent Topicals

Restructuring and Insolvency in Kenya

Jan 19, 2025

Insolvency refers to a financial situation where an individual, business or entity, such as a fund, is unable to meet their financial obligations or settle their debts as they become due. In most cases, the state of insolvency occurs due to an increase in business expenses, poor cash management, law suits, poor budgeting, fraud, business expansion, or a reduction in sales.  In Kenya, insolvency proceedings are primarily governed by the Insolvency Act of 2015. The act provides for how insolvent companies can be assisted to service creditors obligati...

Kenya Macro Economic Review

Jan 5, 2025

Economic Growth: According to the Kenya National Bureau of Statistics (KNBS) Q2’2024 Quarterly Gross Domestic Product Report, the Kenyan economy recorded a 4.6% growth in Q2’2024, slower than the 5.6% growth recorded in Q2’2023. The main contributor to Kenyan GDP remains to be the Agriculture, Fishing and Forestry sector which grew by 4.8% in Q2’2024, lower than the 7.8% expansion recorded in Q2’2023. Most sectors recorded lower growth rates compared to Q2’2023 with Accommodation and Food Services and Financial & Insurance recording growth of 26.6%, 5.1%, compared to, 42.8%, 13.2% growth in Q2”2023   respectively. The slowed growth in the economy could be attributed to the still elevated fuel prices which made production more expensive and negatively impacted the business environm...

Sub-Saharan Africa Regional Review

Jan 5, 2025

According to the World Bank, the Sub-Saharan African economy is projected to grow at a rate of 3.0% in 2024, 0.6% points higher than the 2.4% recorded in 2023. Notably, the projection was revised downwards from the earlier forecast of 3.4%. The downward revision of the regional growth by the IMF is mainly due to the destruction of Sudan's economy in a civil war, weak external demand, tight global financial conditions and high inflationary pressures in most countries. Additionally, public debt is expected to remain high due to increased debt serving costs as a result of continued currency depreciation in the region and high interest rates in developed economies. The decline in the region’s economic growth is attributable to; The heightened inflationary pressures following the Russia-Ukraine c...

Global Markets Review

Jan 5, 2025

Global Economic Growth: According to the World Bank's June 2024 Global Economic Prospects report, the global economy is projected to grow at 2.6% in 2024, matching the growth rate recorded in 2023. This forecast marks a slight downward revision from earlier projections, reflecting continued economic headwinds, particularly in the emerging markets. The World Bank’s growth projection is 0.6 percentage points lower than the IMF’s 2024 forecast of 3.2%. The lower growth is attributable to global inflationary pressures and continued tightening by central banks for much of 2024. However, recent developments indicate that some central banks, such as those in the United States

Alternative Financing in Real Estate development

Dec 29, 2024

In analyzing the alternative financing in Real Estate, we discuss the following; Overview of the Real Estate Sector in Kenya, Traditional Financing for Real Estate Developments, Alternative Financing for Real Estate Developments, Case Study: South Africa’s Real Estate Investment Market (REIT) Market, Recommendations: Measures to Increasing Access to Real Estate Development Funding, and, Conclusion. Section I: Overview of the Real Estate Sector in Kenya The Real Estate sector in Kenya has grown over the years to become one of the largest contributors to the country’s Gross Domestic Product (GDP), supported by factors such as; i) positive demographics including higher urbanization and population growth rates of