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Kenya Economy Watch
Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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obiero wrote:Ebenyo wrote:Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If the economy grew by 5.9% and with inflation rate at 8%,thats s 2.1% growth.It means poverty rate is still high. This is new. You minus inflation from growth. Never seen this before The best thing i like as wazua member is,i get opportunity to learn.Its been interesting for me in the last three months since i joined here.Im learning new dimensions as an investor in NSE.As times goes by,i hope to continously grow. My point was,since economy grew by 5.9%,while inflation is 8%,it still a very low growth.Economy grows at a low rate while inflation erode any benefit that comes with the little growth. However, i have noted your point.I will seek further clarity from my two schools:1 www.wazua.co.ke 2 www.google.co.ke Towards the goal of financial freedom
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Ebenyo wrote:obiero wrote:Ebenyo wrote:Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If the economy grew by 5.9% and with inflation rate at 8%,thats s 2.1% growth.It means poverty rate is still high. This is new. You minus inflation from growth. Never seen this before The best thing i like as wazua member is,i get opportunity to learn.Its been interesting for me in the last three months since i joined here.Im learning new dimensions as an investor in NSE.As times goes by,i hope to continously grow. I like the way Wazuans provoke both analytical and critical thinking on whole economy! John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Member Joined: 3/15/2009 Posts: 360
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Ebenyo wrote:obiero wrote:Ebenyo wrote:Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If the economy grew by 5.9% and with inflation rate at 8%,thats s 2.1% growth.It means poverty rate is still high. This is new. You minus inflation from growth. Never seen this before The best thing i like as wazua member is,i get opportunity to learn.Its been interesting for me in the last three months since i joined here.Im learning new dimensions as an investor in NSE.As times goes by,i hope to continously grow. My point was,since economy grew by 5.9%,while inflation is 8%,it still a very low growth.Economy grows at a low rate while inflation erode any benefit that comes with the little growth. However, i have noted your point.I will seek further clarity from my two schools:1 www.wazua.co.ke 2 www.google.co.ke Real GDP Growth (thats the 5.9% figure) has already taken inflation into a/c
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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shocks wrote:Ebenyo wrote:obiero wrote:Ebenyo wrote:Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If the economy grew by 5.9% and with inflation rate at 8%,thats s 2.1% growth.It means poverty rate is still high. This is new. You minus inflation from growth. Never seen this before The best thing i like as wazua member is,i get opportunity to learn.Its been interesting for me in the last three months since i joined here.Im learning new dimensions as an investor in NSE.As times goes by,i hope to continously grow. My point was,since economy grew by 5.9%,while inflation is 8%,it still a very low growth.Economy grows at a low rate while inflation erode any benefit that comes with the little growth. However, i have noted your point.I will seek further clarity from my two schools:1 www.wazua.co.ke 2 www.google.co.ke Real GDP Growth (thats the 5.9% figure) has already taken inflation into a/c Give us the formula of computing GDP growth so as to believe in 5.9% growth. We want to see rise in cost of living component in the equation such that GDP growth is expressed as a function of inflation to enable us appreciate your assertion. John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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shocks wrote:Ebenyo wrote:obiero wrote:Ebenyo wrote:Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If the economy grew by 5.9% and with inflation rate at 8%,thats s 2.1% growth.It means poverty rate is still high. This is new. You minus inflation from growth. Never seen this before The best thing i like as wazua member is,i get opportunity to learn.Its been interesting for me in the last three months since i joined here.Im learning new dimensions as an investor in NSE.As times goes by,i hope to continously grow. My point was,since economy grew by 5.9%,while inflation is 8%,it still a very low growth.Economy grows at a low rate while inflation erode any benefit that comes with the little growth. However, i have noted your point.I will seek further clarity from my two schools:1 www.wazua.co.ke 2 www.google.co.ke Real GDP Growth (thats the 5.9% figure) has already taken inflation into a/c The GDP growth is driven by government expenditure esp infrastructure, not the private sector. Most of the public spend is earned by the Chinese. Life is short. Live passionately.
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Rank: Member Joined: 8/27/2010 Posts: 495 Location: Nairobi
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sparkly wrote:The GDP growth is driven by government expenditure esp infrastructure, not the private sector. Most of the public spend is earned by the Chinese. This is why I've always ignored the government touting the GDP as a measure of how well Kenya is doing. Quote:Simon Kuznets, the economist who developed the first comprehensive set of measures of national income, stated in his first report to the US Congress in 1934, in a section titled "Uses and Abuses of National Income Measurements": "Economic welfare cannot be adequately measured unless the personal distribution of income is known. And no income measurement undertakes to estimate the reverse side of income, that is, the intensity and unpleasantness of effort going into the earning of income. The welfare of a nation can, therefore, scarcely be inferred from a measurement of national income. " Following on his caution with respect to economic extrapolations from GDP, in 1962, Kuznets stated: "Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what. " The sensitivities related to social welfare has continued the argument specific to the use of GDP as a economic growth or progress metric. Austrian School economist Frank Shostak has noted: "The GDP framework cannot tell us whether final goods and services that were produced during a particular period of time are a reflection of real wealth expansion, or a reflection of capital consumption. For instance, if a government embarks on the building of a pyramid, which adds absolutely nothing to the well-being of individuals, the GDP framework will regard this as economic growth. In reality, however, the building of the pyramid will divert real funding from wealth-generating activities, thereby stifling the production of wealth. " Source: Boundless. “Evaluating GDP as a Measure of the Economy.” Sent from my Black Nokia 3310
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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There are at least 7 malls on the 46km Thika Rd stretch; 1 for every 6km.This is the highest concentration on a single road in Kenya. Out of 55 lives lost on Nairobi roads in may and June,17 were lost on Thika superhighway Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 3/23/2011 Posts: 304
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Found part of this conversation on twitter about the current labor market very interesting as it highlights MNC operations in the Country (compiled most of the info in the list below)....... 1. July 2016 - Coca-cola has downgraded its regional HQ in Nairobi and relocated most of its operations to SA and Nigeria 2. January 2016 - CNBC Africa announced it would move its regional studios from Nairobi to Kigali Rwanda. The business development manager said their decision was inspired by the goodwill and support from Rwandan Government. 3. February 2016 - Kenya Flourspar Company announces plans to shutdown operations in Kenya. More than 2000 directly employed workers were affected/lost jobs along with another 1000 casual workers 4. January 2016 - Barclays Africa Group announces plans to close its regional management office in Nairobi moving it to SA 5. November 2015 - Orange/France Telecom announces plans its selling its 70% stake in Telkom Kenya and exiting the Kenyan market. The following month it laid off about 500 employees in a new round of retrenchments at the company. 6. October 2014 - Cadbury Kenya announces plans to shut down its manufacturing plant in Nairobi as part of a global transformation strategy. The move left about 300 Kenyans who worked at the plant either as permanent or casual employees jobless. 7. May 2014 - Tata Chemicals Magadi announces plans to shut down operations in Kenya by closing down its main factory in Kajiado County. The firm employed about 500 permanent workers who were all sent home. 8. September 2014 - Eveready East Africa finally shuts down its dry cell plant in Nakuru. It says it will import batteries from Egypt. About 170 workers lost their jobs. In 2013 the firm retrenched 74 employees following up with 26 layoffs in 2009 and 130 in 2008. 9. July 2014 - The British High Commission in Nairobi announces plans to scale down its operations starting December. 10. July 2014 - Global banking conglomerate HSBC announced plans to shut down its Nairobi office 3 years after it kicked off operations. The bank opted to exit Kenya as part of the groups restructuring that has seen it scale down operations in the market. 11. January 2015 - Nestle Kenya scaled down its operations in Kenya sending home 46 senior and junior staff members. 12. November 2011 - Nokia downgraded its Kenya office from regional HQ to a sales office and put it under SA 13. Colgate Palmolive ceased manufacturing in Kenya. It tendered out its plant after a review of its marketing/distribution operations. 14. April 2010. Reckitt Benckiser started selling off its property including a production plant in Kenya scaling down operations. 15. Bridgestone, Johnson & Johnson and Unilever restructured operations opting to serve local market through importing from Egypt. - GM was to open a bus assembly plant in Kenya but later shelved it. Soon to import ready buses from Egypt. - Not to mention layoffs at KQ, KMC, Bamburi and pending layoffs at Mumias and Uchumi as well as layoffs in the Hospitality industry as Tourism recovery is slow. You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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alutacontinua wrote:Found part of this conversation on twitter about the current labor market very interesting as it highlights MNC operations in the Country (compiled most of the info in the list below).......
1. July 2016 - Coca-cola has downgraded its regional HQ in Nairobi and relocated most of its operations to SA and Nigeria
2. January 2016 - CNBC Africa announced it would move its regional studios from Nairobi to Kigali Rwanda. The business development manager said their decision was inspired by the goodwill and support from Rwandan Government.
3. February 2016 - Kenya Flourspar Company announces plans to shutdown operations in Kenya. More than 2000 directly employed workers were affected/lost jobs along with another 1000 casual workers
4. January 2016 - Barclays Africa Group announces plans to close its regional management office in Nairobi moving it to SA
5. November 2015 - Orange/France Telecom announces plans its selling its 70% stake in Telkom Kenya and exiting the Kenyan market. The following month it laid off about 500 employees in a new round of retrenchments at the company.
6. October 2014 - Cadbury Kenya announces plans to shut down its manufacturing plant in Nairobi as part of a global transformation strategy. The move left about 300 Kenyans who worked at the plant either as permanent or casual employees jobless.
7. May 2014 - Tata Chemicals Magadi announces plans to shut down operations in Kenya by closing down its main factory in Kajiado County. The firm employed about 500 permanent workers who were all sent home.
8. September 2014 - Eveready East Africa finally shuts down its dry cell plant in Nakuru. It says it will import batteries from Egypt. About 170 workers lost their jobs. In 2013 the firm retrenched 74 employees following up with 26 layoffs in 2009 and 130 in 2008.
9. July 2014 - The British High Commission in Nairobi announces plans to scale down its operations starting December.
10. July 2014 - Global banking conglomerate HSBC announced plans to shut down its Nairobi office 3 years after it kicked off operations. The bank opted to exit Kenya as part of the groups restructuring that has seen it scale down operations in the market.
11. January 2015 - Nestle Kenya scaled down its operations in Kenya sending home 46 senior and junior staff members.
12. November 2011 - Nokia downgraded its Kenya office from regional HQ to a sales office and put it under SA
13. Colgate Palmolive ceased manufacturing in Kenya. It tendered out its plant after a review of its marketing/distribution operations.
14. April 2010. Reckitt Benckiser started selling off its property including a production plant in Kenya scaling down operations.
15. Bridgestone, Johnson & Johnson and Unilever restructured operations opting to serve local market through importing from Egypt.
- GM was to open a bus assembly plant in Kenya but later shelved it. Soon to import ready buses from Egypt.
- Not to mention layoffs at KQ, KMC, Bamburi and pending layoffs at Mumias and Uchumi as well as layoffs in the Hospitality industry as Tourism recovery is slow.
my only problem is that only negatives were picked, now bring the positives we compare to get a verdict "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 3/23/2011 Posts: 304
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mlennyma wrote:alutacontinua wrote:Found part of this conversation on twitter about the current labor market very interesting as it highlights MNC operations in the Country (compiled most of the info in the list below).......
1. July 2016 - Coca-cola has downgraded its regional HQ in Nairobi and relocated most of its operations to SA and Nigeria
2. January 2016 - CNBC Africa announced it would move its regional studios from Nairobi to Kigali Rwanda. The business development manager said their decision was inspired by the goodwill and support from Rwandan Government.
3. February 2016 - Kenya Flourspar Company announces plans to shutdown operations in Kenya. More than 2000 directly employed workers were affected/lost jobs along with another 1000 casual workers
4. January 2016 - Barclays Africa Group announces plans to close its regional management office in Nairobi moving it to SA
5. November 2015 - Orange/France Telecom announces plans its selling its 70% stake in Telkom Kenya and exiting the Kenyan market. The following month it laid off about 500 employees in a new round of retrenchments at the company.
6. October 2014 - Cadbury Kenya announces plans to shut down its manufacturing plant in Nairobi as part of a global transformation strategy. The move left about 300 Kenyans who worked at the plant either as permanent or casual employees jobless.
7. May 2014 - Tata Chemicals Magadi announces plans to shut down operations in Kenya by closing down its main factory in Kajiado County. The firm employed about 500 permanent workers who were all sent home.
8. September 2014 - Eveready East Africa finally shuts down its dry cell plant in Nakuru. It says it will import batteries from Egypt. About 170 workers lost their jobs. In 2013 the firm retrenched 74 employees following up with 26 layoffs in 2009 and 130 in 2008.
9. July 2014 - The British High Commission in Nairobi announces plans to scale down its operations starting December.
10. July 2014 - Global banking conglomerate HSBC announced plans to shut down its Nairobi office 3 years after it kicked off operations. The bank opted to exit Kenya as part of the groups restructuring that has seen it scale down operations in the market.
11. January 2015 - Nestle Kenya scaled down its operations in Kenya sending home 46 senior and junior staff members.
12. November 2011 - Nokia downgraded its Kenya office from regional HQ to a sales office and put it under SA
13. Colgate Palmolive ceased manufacturing in Kenya. It tendered out its plant after a review of its marketing/distribution operations.
14. April 2010. Reckitt Benckiser started selling off its property including a production plant in Kenya scaling down operations.
15. Bridgestone, Johnson & Johnson and Unilever restructured operations opting to serve local market through importing from Egypt.
- GM was to open a bus assembly plant in Kenya but later shelved it. Soon to import ready buses from Egypt.
- Not to mention layoffs at KQ, KMC, Bamburi and pending layoffs at Mumias and Uchumi as well as layoffs in the Hospitality industry as Tourism recovery is slow.
my only problem is that only negatives were picked, now bring the positives we compare to get a verdict Found another thread with the positives.....let me compile it then post. You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Member Joined: 3/23/2011 Posts: 304
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Here is a thread on MNCs that have scaled up/moved their operations to Kenya (added some links).... 1. Wrigleys Co (East Africa) Ltd opens a new 63M factory http://mobile.confection...-with-63m-Kenya-factory
2. Crown Paints opens a new factory http://www.the-star.co.k...m-kisumu-plant_c1309262
3. Vaseline opened a production factory http://www.africanbusine...meet-skin-care-demands/
4. Nigeria beverage can maker GZ industries Ltd will open a new plant in Kenya this year http://www.africanbusine...meet-skin-care-demands/
5. Dell Monte opened another factory this year https://www.agra-net.com...enya-is-open-513506.htm
6. A chemicals manufacturer opened a subsidiary in Nairobi in 2016 http://www.businessdaily.../-/oahuajz/-/index.html
7. Toyota Tshusho EA is opening a fertilizer factory in Eldoret in August http://www.nation.co.ke/.../-/81m35ez/-/index.html
8. BASF one of the worlds leading chemicals groups opened its new concrete admixtures factory in Nairobi http://inafrica24.com/mo....oaCeecLk.z68r5gNQ.dpbs
9. ICANN launched its first Africa regional engagement office in Nairobi 10. Turner & Townsend Plc a construction and project management consultancy opened a regional hub in Kenya http://www.turnerandtown...h-exceeds-expectations/
11. JPMorgan Chase is opening an office in Kenya http://ksnmedia.com/2015...o-open-office-in-kenya/
12. Stanford Institute for Innovation in Developing Economies (SEED) opening its 2nd centre in Nairobi http://www.bopen.se/inde...transformation-program/
13. Financial software company SunGard opened its EA office in Nairobi http://www.waterstechnol...to-open-office-in-kenya
14. Daimler trucks opened a second African regional office in Nairobi to cover 41 countries in East, Central and West Africa 15. Sony Music Entertainment is opening a regional office in Nairobi http://nairobiwire.com/2...-office-in-nairobi.html
16. Dubai Islamic Bank (DIB) plans to be operating in Kenya before the end of 2016 http://www.businessdaily...8/-/3jokrv/-/index.html
17. Denmark's largest supermarket chain, Coop Danmark is setting up a coffee roasting factory in Nairobi http://www.businessdaily.../-/o1ib81z/-/index.html
18. Hotels: Tune Inn, Hilton Garden Inn, Ramada, Movenpick Hotel, Four Points by Sheraton, Golden Tulip, Pullman by Accor Hotels setting up in the country. You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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18 positives vs 15 negatives.Thats not bad! Towards the goal of financial freedom
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Rank: Member Joined: 7/10/2014 Posts: 145 Location: Nairobi
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BAT plans underway to centralize their operations from South Africa. Layoff have already started "Blowing out someone else candle won't make yours shine brighter"-Anonymous
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Rank: Member Joined: 5/4/2015 Posts: 241 Location: Kahno
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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http://af.reuters.com/ar.../kenyaNews/idAFFit968485"Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 3/23/2011 Posts: 304
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Kenya's July inflation up to 6.39% from 5.8% previous month. http://www.tradingeconom...com/kenya/inflation-cpi
KNBS states that this is due to rise in fuel and food prices.... You dont have to be great to START but you have to start to be GREAT!!!!!!!!
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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http://kenyanwallstreet....airobis-elevated-highway"Don't let the fear of losing be greater than the excitement of winning."
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Rank: Member Joined: 11/1/2013 Posts: 257
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Eveready,Sameer,Cadburies,Colgate et al , closures and relocation indicate a worrying trend on our manufacturing sector,Our industrialisation policy is really wanting. meanwhile beverage & liquor giants are fighting the taxman hard. Soft drinks maker Coca-Cola will close shop and relocate its manufacturing plants to neighbouring countries if the taxman insists on implementing a Sh17.7 billion digital tax system that industrialists have opposed, the company’s officials told Parliament., http://www.businessdaily...tem-0-chgthbz/index.htmlNo diagnosis,no pragnosis,no pragnosis no profit......Jesse livermore
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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[quote=Magnate]Eveready,Sameer,Cadburies,Colgate et al , closures and relocation indicate a worrying trend on our manufacturing sector,Our industrialisation policy is really wanting. meanwhile beverage & liquor giants are fighting the taxman hard. Soft drinks maker Coca-Cola will close shop and relocate its manufacturing plants to neighbouring countries if the taxman insists on implementing a Sh17.7 billion digital tax system that industrialists have opposed, the company’s officials told Parliament., http://www.businessdaily...em-0-chgthbz/index.html[/quote] Let them pay then go If Obiero did it, Who Am I?
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