Kenya's Economic survey 2022
9 May 2022
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Highlights of Kenya’s Economic Survey 2022
Highlights from Kenya’s economic survey 2022
Earnings from Kenyan exports catered for 34.6% of Kenya's imports as the trade deficit increased to Ksh 1.4 trillion.
The volume of marketed milk in Kenya increased by 26.6% to 801.9 million liters from 682 million liters in 2020.
Kenya's total import bill of petroleum products rose to Ksh 348.3 billion in 2021 from Ksh 209.1 billion in 2020.
Kenya's cement consumption rose 23% to 9.1 million tons in 2021, up from 7.4 million tons in 2020.
Total mobile money transfers in Kenya grew 31.7% to Sh6.9 trillion in 2021. The value of mobile commerce transactions grew 63.2% to Sh15.3 trillion
Hotel occupancy rose 45.1% to 5.5 million. Domestic tourism accounted for 69.4% of the total occupancy.
EXPORTS
Belgium overtakes America as Kenya’s top export market for coffee
Belgium imported 8.9 million kilograms (worth Ksh 6.5 billion) of Kenyan coffee, overtaking the USA as the top buyer of the beverage.
The United States bought coffee worth Ksh 4 billion while Germany bought coffee worth Ksh 3 billion.
Context: Kenya exports most of its coffee as cleaned beans (It exports only 5% of beans as roasted coffee) Kenya, therefore, misses out on the added value from selling roasted and packaged coffee.
Roasters buy Kenyan produce to blend with lower quality beans from elsewhere in the world.
The country is seeking to raise the amount of coffee, which is locally roasted, to 10% annually over the next five years.IMPORTS
Government Bans importation of 2nd-hand buses and Trucks
The Kenya Bureau of Standards (KEBS) stated that buses more than 7 meters in length and trucks with load capacities of more than 3.5 tonnes will be banned from importation starting July 1 this year.
Importation of tractor heads and prime movers older than 3 years are will be banned from July 2023.
As of July, the second-hand imports will be required to be of higher standards, especially in terms of emissions, and KEBS will require them to meet the Euro IV/4 standards on emission.
ECONOMY
The slow growth of salaries in the Private sector
The annual economic survey by the Kenya National Bureau of Statistics (KNBS) revealed that private companies raised average monthly pay only by 2.24% compared with 3.97% the year before.
This is the slowest growth in monthly pay since 2010 when average salaries rose 2.04%—Unfortunately, employees will have to grapple with the rising cost of living even with the slow growth in monthly pay—
What’s next
The Federation of Kenya Employers (FKE) has stated that workers’ compensation which covers inflation would only resume when productivity grows faster than the cost of living.
Last year, The real wage stood at negative 3.83% after inflation adjustments, down from negative 0.59% in 2020.JUDICIARY
The Judicial Service Commission approved the removal process of Justice Chitembwe
The Judicial Service Commission (JSC) approved the removal of Justice Said Chitembwe from office. Through Chief Justice Martha Koome, the Commission wrote to President Uhuru Kenyatta for further action.
"Accordingly, the Commission resolved to send the Petition to His Excellency the President for his further action in accordance with article 168(4) of the Constitution," - Chief Justice Martha Koome.
Background: In November 2021, the JSC initiated proceedings for the removal of Justice Chitembwe from office following viral leaks alleging misconduct, bribery, and corruption.
WHAT YOU MUST KNOW FROM LAST WEEK
Kenya’s poverty rate to fall to 33.4%
The world bank projects that Kenya’s poverty rate will fall to 33.4% in 2022, below the pre-crisis level of 34.4% in 2019
The world bank projects that with the GDP growth projected to average 5.2% over the 2022-2024 window, growth in real per capita incomes will help reverse the rising poverty rates caused by the Covid-19 pandemic.
A possible solution to the wheat problem in Kenya
Serbia is in talks with Kenyan millers and the East African Grain Council to export 150,000 tonnes of wheat to Kenya to bridge the gap left by the lack of wheat imports from Russia and Ukraine.
Foreign investors exiting the Nairobi Stock Exchange (NSE)
Foreign investors seem to be exiting fast from the NSE as the August elections are near. They dumped around Ksh 1.7B of stocks at the NSE in April bringing the year-to-date net selling position to Ksh 3.4B.
Sanlam and Allianz Announce Merger Plan
Sanlam, one of Africa’s largest non-banking financial services companies, and Allianz, one of the world’s leading insurers and asset managers, have agreed to combine their current and future operations across Africa.
The joint venture will be the largest Pan-African insurance player with a combined total group equity value (GEV) in excess of 2 billion euros.
Safaricom hires Citibank Managing Director
Safaricom hired the managing director of Citi Bank to be in charge of its strategy and acquisitions, marking the company’s ambitions to get a larger share of the financial services market.
Safaricom is seeking regulatory approvals to launch insurance, unit trust and saving products on its M-Pesa platform