Status of Rate Cap Review in Finance Bill, 2018
Aug 26, 2018
This week we revisit the interest rate cap topic following the proposed amendments to the Finance Bill, 2018, tabled by the Parliamentary Committee on Finance and Planning in the National Assembly during its second reading. According to the chair of the committee, the proposed amendments were based on deliberations of the committee and the comments received during public awareness and stakeholder participation forums conducted between 1st – 3rd August 2018, following the first reading of the Finance Bill, 2018 on 3rd July 2018. The Finance Bill, 2018, during its first reading, proposed the repeal of section 33B of the Banking Act, which would result in the elimination of the Central Bank’s powers to enforce an interest rate cap in banks and other financial institutions. However, based on the committee’s deliberations and input from the public, the committee is now of the view that, (i) the upper limit on interest rate cha...Aug 19, 2018
The International Monetary Fund (IMF) recently concluded their visit to Kenya where they were holding discussions with the Kenyan Government on the second review under a precautionary Stand-By Arrangement (SBA), which was extended to Kenya on 14th March 2016. The SBA is a lending arrangement extended by the IMF to member countries in emerging markets in need of financial assistance, normally arising from financial crisis. In a press statement after the Kenyan visit, the IMF stated that their mission to assess the Kenyan economy achieved significant progress, but it remains uncertain if Kenya’s access to the standby facility will be extended as talks with the government are set to continue. As such, this week we are focusing on whether Kenya needs the facility. In this note we shall address the following items: The IMF’s available programs and engagement with Kenya, The IMF’s visit to Kenya in...Nakuru Real Estate Investment Opportunity
Aug 12, 2018
In line with our regional expansion strategy, we continue to assess investment opportunities in various Kenyan Counties, to enable us to diversify our portfolio of real estate investments for our clients. So far we have covered 13 counties, including Nyeri, Laikipia, Meru, Mombasa, Narok, Homabay, Kisii and Uasin Gishu, and have subsequently released research notes such as the: Nyeri Real Estate Investment Opportunity 2017, Kisumu Real Estate Investment Opportunity 2016 and Kisumu Real Estate Investment Opportunity 2018, released last month. This week, we shift our focus to Nakuru County, specifically, the headquarters, Nakuru Town. We analyse the real estate investment opportunity in the town in terms of rental yields, capital appreciation,...The Fight Against Corruption in Kenya…Yet Another Chapter
Jul 29, 2018
Transparency International defines corruption as the “abuse of entrusted power for private gain”. Corruption can be classified as grand, petty and political, depending on the amount of money lost and the sector where it occurs. Grand corruption consists of acts committed at a high level of government that distort policies or the central functioning of the state, enabling leaders to benefit at the expense of the public good, Petty corruption refers to everyday abuse of entrusted power by low and mid-level public officials in their interactions with ordinary citizens, who often are trying to access basic goods or services in places like hospitals, schools, police departments, and other agencies, and, Political corruption is a manipulation of policies, institutions and rules of procedure in the allocation of resources and financing by political decision makers, who abuse their position to sust...Kisumu Real Estate Investment Opportunity
Jul 21, 2018
In line with our regional expansion strategy, we continue to assess investment opportunities in the Kenyan Counties, to enable us to diversify our portfolio of real estate investments for our clients. So far, we have covered 13 Kenyan Counties, including; Nyeri, Laikipia, Meru, Mombasa, Narok, Homabay, Kisii and Uasin Gishu. In line with this, in August 2016 we released the Kisumu Real Estate Investment Opportunity 2016, a research note that focused on the real estate market performance in Kisumu covering the residential, commercial offices, retail and hospitality themes. According to the research note, the market recorded average rental yields of 7.0%, with office, retail, and residential themes recording average rental yields of 7.0%, 9.0%, and 5.1%, respectively. In this focus, we update that...