Kenya

As the largest economy in the EAC and COMESA in terms of GDP, Kenya has positioned itself as a major economic power in the region and across sub-Saharan Africa. Traditionally a largely agrarian economy, Kenya has quickly entrenched its position as a manufacturing, logistical and technology hub in the region. As a market-based economy with a supportive domestic policy...

The government has a long history of intervening in Kenya’s banking industry. Before the financial sector was fully liberalised in the 1990s, state actors maintained a firm grip on credit allocation to various areas of the economy, only granting a greater share of funds to sectors it deemed to be strategically important. This approach, however...

The past year has been a challenging one for Kenya’s banks. As the full-year results for 2017 began to emerge, the effects of a new cap on lending interest rates become apparent, with most banks reporting reduced margins and profitability. A tighter lending environment, however, has encouraged banks to find alternative routes to revenue. Technological innovation, in particular...

Averaging 5% per year over the past decade, according to the most recent figures from the IMF, Kenya’s economic growth has been impressive. Revenue growth, however, has followed a more volatile trajectory and has often failed to meet government projections. The Kenya Revenue Authority (KRA) collected some KSh656.9bn ($6.4bn) in tax revenue in the second half of 2017, a figure...