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Kenya's economic growth to pick up
Courtesy : Kenya Broadcasting Corporation, Posted: Mon, Jan 18, 2010
CFC Stanbic financial service providers Monday predicted a three to four percent growth domestic product (GDP) for this year's first quarter, with the shilling expected to be strong from foreign investments as well as Diaspora remittances.
According to CFC there is also an expected growth in the tourism transport and communication, whole sell and retail business sectors which they have projected to hit approximately 7 percent, double the rate of the GPD.
Presenting the quarterly economic and market outlook report at a Nairobi hotel on Monday, CFC financial services head of research Judd Murigi said that, treasury bills will face a major downward pressure due to increased demand while attention will shift to foreign investments with high liquidity.
"Tourism transport and communication, real estates and construction, banking, wholesale and retail trade are expected to perform well in 2010" he said.
Murigi said that the Nairobi stock exchange 20 index share is expected to exceed 4,000 point in 2010,with the report indicating increased activity at the back of renewed interest in equities at the NSE both local and foreign investment.
According to the report tea production is expected to increase while market prices are likely to drop "Coffee production is expected to decline while horticulture will recover but not to pre crisis level" he said.
On the global economic scene,economic growth is expected to pick up during the year with different regions recovering at varying rates' He said " the risk of double depressions remains as many economies continues to struggle with diverse related global monetary and fiscal stimulus.
He further said that the political direction of the coming referendum is likely to affect local investments and predicted that a successful referendum will boost investor's confidence.
PM launches Mbita -Homabay road project
Written By:PMPS, Posted: Sat, Jan 23, 2010
Prime Minister Raila Odinga Saturday at Mbita town launched the historical 43kilometres long Mbita -Homabay road to be constructed at a cost of 3.4billion Kenyan shillings.
The Premier, who hailed the project as a "major milestone" geared towards opening up the lake region for socio-economic development, said that the road which will be upgraded to bitumen standards is expected to be completed in the next 30months.
He said that the government was committed to achieving the aspirations of the vision 2030 by improving infrastructural facilities in the whole country adding that the government will continue constructing roads all over the country to improve the communication network.
"As a government, we are taking major strides and investing in roads, electricity, water and roads all over the country because we know that infrastructure is key to economic development". He said.
The PM regretted that forty six years after independence the main road leading to Rusinga Island, a highly prospective tourism hub had continue to be in an awful state.
"It is shameful that no road goes to the late Tom Mboya's final resting place despite the fact that he was a great statesman and one of the founding fathers of country. The PM noted.
Raila called on the contractor Put Sarajevo General Engineering Company to expedite the construction work and finish within the agreed time.
The PM however cautioned road users in the country to be cautious to avoid accidents that lead to unnecessary lose of life.
He also warned lorry drivers against overloading that leads to the decimation of our roads and called on the police especially at weigh not bridges not to compromise, but apprehend those contravening apt road use regulations.
The PM expressed optimism that the country will have a new constitution soon -and noted that most Kenyans were looking forward to a new constitutional dispensation.
"I am optimistic that we shall all agree and give this country the much awaited constitution". He said adding that both the two Principals had deliberately opted to stay clear of the constitution making process to avoid influencing any side.
'This is a noble process as the constitution belongs not to us but to Kenya and to over 40 million Kenyans." He said.
However, the PM said that a referendum will be carried out since it is stipulated in the current statutes.
He was responding to calls by leaders who suggested that since there appears to be a consensus among Kenyans then there should no referendum but instead the funds earmarked for the same exercise be channeled to kazi kwa vijana programme to create additional employment opportunities for the youth.
Among those in attendance included ministers Franklin Bett, James Orengo,Otieno Kajwanga who also the Mbita MP.
Others were MPs Elizabeth Ongoro, John Pesa, James Rege,Omondi Anyango,Paddy Ahenda among others
Fruit farmers get financial boost
Written By:Judith Akolo, Posted: Fri, Jan 22, 2010
Over 50,000 mango and passion fruit farmers in Kenya and Uganda are set to benefit from a Sh 862 million grant from the Bill and Melinda Gates Foundation.
The money which is part of the 1.4 billion US dollars set aside by the Foundation to fund agricultural growth and expansion around the globe will see the farmers access better quality seed.
The increase in yields and high production will find a ready market at Coca Cola East Africa for processing into fruit juices.
Coca Cola East Africa General Manager in charge of Stills, Lionel Marumahoko said this grant and partnership will see a greater multiplier effect on farmers incomes in, Western, Rift Valley, parts of Central Province and Eastern Uganda.
He said the recent move by Treasury to lower excise duty on soft drinks and water, is already encouraging manufacturers to venture into the business and will have positive results on the local economy.
Many juice manufacturing companies in Africa depend on imported fruit juice concentrate to produce fruit juices. With the new development, being implemented by the Ministry of Agriculture and Technoserve will the much needed knowledge and services to improve their farming technology while also improving their incomes.
"This is a very important initiative, because it seeks to support small holder farmers, many of whom have had low incomes from their farms," said Marumahoko.
The Bill and Melinda Gates Foundation, Program Officer in charge of Global Development, Richard Rogers noted that the project is aimed at contributing towards poverty alleviation through sustained increase in agricultural productivity.
Kenya fiscal stimulus needed, says World Bank
Written By:reuters, Posted: Thu, Jan 21, 2010
Kenya has been urged to keep assessing its economic performance before reducing or removing its fiscal stimulus.
World Bank's country director said although the global economy was on the rebound removing the fiscal stimulus altogether would be premature.
Speaking to reuters on Thursday "There is still a possibility that we are going to see a further dip. It's just going to be a question of the government monitoring macroeconomic indicators, and particularly inflation levels, to see what actually is appropriate going forward."
The government put in about 1 percent of its gross domestic product as fiscal stimulus in its 2009/10 budget after suffering the triple shocks of post-election violence, drought and global economic slowdown.
The World Bank estimates that Kenya's economy grew by 2.5 percent in 2009 from 1.7 percent the previous year and forecasts expansion of 3.5 percent this year.
Zutt said the bank hoped to disburse $200 million for Kenyan projects this fiscal year, from $150 million over 2008/09.
It is also looking into a $300 million electricity expansion project, a $100 million municipal development programme and a $60 million youth empowerment plan