Wazua
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Kenya Economy Watch
Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Is the Dubai bank saga the reason why interbank rate has been blowing hot like a blow-torch? $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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@kizee1 the tbill red signal is starting to flash. The last CBK auction shows that 91 day tbill pays a higher interest than the 182 day tbill and not so far from the 364 day tbill. The 364 day tbill rate is almost at par with current bond rate offers! The yield curve is threatening to invert! Short end commanding higher rates than long end. That's a liquidity distress signal! Equities need liquidity to stay afloat. If this liquidity is being vapourized by money markets, stocks will definitely sink lower. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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hisah wrote:@kizee1 the tbill red signal is starting to flash. The last CBK auction shows that 91 day tbill pays a higher interest than the 182 day tbill and not so far from the 364 day tbill. The 364 day tbill rate is almost at par with current bond rate offers!
The yield curve is threatening to invert! Short end commanding higher rates than long end. That's a liquidity distress signal!
Equities need liquidity to stay afloat. If this liquidity is being vapourized by money markets, stocks will definitely sink lower. Mega Bill coming up. The Bids here will be interesting. Enough to smooth the curve? We'll see. Foreign portfolio funds can be attracted to this one.
CBK to sell T-bond worth 30bn[quote]Kenya will sell a one-year Treasury bond worth Sh30 billion shillings this month and its proceeds will go towards funding the government's budget, the Central Bank said on Friday - See more at: http://www.the-star.co.k...-sell-t-bond-worth-30bn[/quote]
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Quote:Open Africa’s skies to facilitate travel – tourism ministersQuote:HARARE, June 19 (The Source) – Africa needs to open up its airspace to improve connectivity which is seen as crucial to facilitating ease of movement for tourists across the continent which is desperate for income, South Africa’s tourism minister Derek Hanekom has said.
The United Nations World Tourism (UNWTO) reports that global tourism has been on the rise, putting 2014 travellers at 1,138 billion. Africa’s share of the tourism receipts and arrivals is a mere five percent.
Hanekom who was speaking at a tourism conference in Harare on Thursday said improved air networks would encourage more visitors to travel across Africa, giving the continent a bigger share of the global market.
“Our own aviation policies are to blame for the small share which we account for. We have countries protecting their own national carriers not wanting to open up to competition,” Hanekom said. http://source.co.zw/2015...avel-tourism-ministers/
Mzembi speaks on tourism challenges in Africa While tourism has been a major contributor to the economic recovery in many parts of the world, generating foreign earnings, employment and investment, the tourism industry also suffered collateral damage marked by declining arrivals in most destinations in Africa due to various factors such as the Ebola outbreak, which reportedly claimed 11 133 in Sierra Leone, Liberia, Guinea, Mali and the United States. UNWTO Commission for Africa chairman and Zimbabwe’s Tourism minister Walter Mzembi said although the outbreak was concentrated in West Africa, Zimbabwe among other countries substantially suffered a decline in arrivals. [Media: Masters of sensation & distortion!]“Perception in source markets unfortunately views Africa as one contiguous destination, a country, when in fact the continent. The ubiquitous nature of this disease has far reaching global ramifications and it impacts negatively on tourism and trade business,” Mzembi said. Another challenge facing tourism, according to Mzembi, was the intolerable carnage on wildlife through poaching amplified by illegal trade in game products. He urged member countries to enhance sustainable management of natural resources for posterity, saying the most pressing issues were high levels of wildlife poaching, environmental degradation and illegal trade in wildlife products. https://www.newsday.co.z...sm-challenges-in-africa/
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Rank: Member Joined: 1/3/2011 Posts: 264 Location: Nairobi
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With irregular tenders being questioned and public wage being scrutinized, I for one I'm sure glad that the period of irrational exuberance is coming to an end. Can someone say bubble poppin? I work very hard to make good software and systems, my neighbor buys drinks to get an overpriced tender award, I make less than a quarter of what he makes. The economy went to shit when peeps started valuing services more that cold hard goods and technology. Time for real skills and real productivity. Back to fundamentals for EMs
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Rank: Member Joined: 3/23/2011 Posts: 304
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MPC leaves CBR at 11.50% citing month on month decrease of 0.8% in inflation (5.8% vs 6.6% previous) and low food and oil prices as some of the reasons. Dr. Njoroge however, notes that Elnino rains could disrupt food supply chains and exert pressure on food prices in the short term. This could be a major hit to PR govt as wanjiku takes to the streets with the unga revolution. https://www.centralbank....of_September_22_2015.pdfYou dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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[quote=Cde Monomotapa] Regional leaders launch implementation authorityQuote:The Heads of State under the Northern Corridor Integration Projects (NCIP) initiative have formed an authority that will primarily fast track implementation of agreed on decisions.
The Northern Corridor is the transport network that links the landlocked countries of Uganda Rwanda, South Sudan and Burundi to Kenya’s Maritime Port of Mombasa. Quote:Ethiopia’s Minister for Foreign Affairs Dr. Tedros Adhanom Ghebreyesus, EAC Secretary General Dr. Richard Sezibera and Donat Bagula the Executive Secretary of the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) attended as observers.
DRC and Tanzania sent some senior officials to represent them. The next Summit will be held in Nairobi, Kenya in two months time http://www.newtimes.co.r...icle/2015-06-07/189509/[/quote] Quote:Regional Director (Eastern and Southern Africa (ESAF) in the office of the International Civil Aviation Organisation (ICAO) Council, Mr Barry Kashambo said a liberalised airspace will reduce fares and increase flexibility in travel.
“The whole process is aimed at eliminating restrictions and providing guiding principles that will promote and ease movement of persons, goods and cargo by air,” Mr Kashambo told Smart Company by phone last week. Quote:The greatest benefit is expected to come from the classification of flights between the four countries as domestic, building on the recent move to allow use of national identification card as a travel document to ease movement within the bloc. http://www.ghanaweb.com/...t&utm_medium=twitter
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Rank: Veteran Joined: 6/17/2009 Posts: 1,619
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Inlation rate up slightly to 5.97% in September.
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Rank: Elder Joined: 6/21/2008 Posts: 2,490
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The shilling seems to be gaining against the dollar The man who marries a beautiful woman, and the farmer who grows corn by the roadside have the same problem
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Rank: Member Joined: 12/24/2008 Posts: 112
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it's the dollar that's falling...
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Rank: Member Joined: 5/8/2008 Posts: 288
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Elephant Man wrote:it's the dollar that's falling... Is it falling globally and do you think the trend will be reversed?
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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The parliament "has no money " as they say.  Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Member Joined: 2/18/2011 Posts: 448
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Hi Wazuans. I am wondering, what is the impact of the endless corruption and wastage on the economy in general and if possible impact of it on Government spending?
Is there precedence of a government going broke due to corruption and what are the implications of such on the hard working citizens?
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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mibbz wrote:Hi Wazuans. I am wondering, what is the impact of the endless corruption and wastage on the economy in general and if possible impact of it on Government spending?
Is there precedence of a government going broke due to corruption and what are the implications of such on the hard working citizens? Look up Ghana and Greece. They're the latest examples
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Page 38 ,39 and 40 of the Daily Nation speaks volumes possunt quia posse videntur
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Next year will be tough for the government and economically.Domestic borrowing on the roof and high interest rates as the government struggles to meet repayment obligations. KRA will really try to achieve the targets but most of the revenue will be towards debt repayments. Salary increments for public servants wasahau Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Debt worth sh.650bn matures next year and will be due for repayment. It will be a tough year economically for Kenya. Debt repayment this year had been projected at sh.400bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 10/11/2006 Posts: 2,304
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Ericsson wrote:Debt worth sh.650bn matures next year and will be due for repayment.
It will be a tough year economically for Kenya.
Debt repayment this year had been projected at sh.400bn Defaults???! Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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@mnandii As per the prescription we were given by IMF early this year;debt repayments come first and take top priority then other expenses follow. That's the reason we are having cash crunch issues Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Henry Rotich says between July and September;sh 148.7bn of revenue collected was used to pay domestic and foreign debt. He couldn't use tbiils and tbonds since interest rates are high. If in first 3 months of financial year ksh.148.7bn of debt has been repaid;it means by end of financial year we would have repaid debt worth nearly ksh.600bn. Source of repayment revenue collected by government agencies primarily KRA. This shit is not ending anytime soon. The tbills and bonds being currently issued are to sustain government operations since most of the money collected by KRA is being used to repay debt. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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