Why we should move fast to halt the shilling’s slide

Opinion and Analysis

 

A lady sells cereals at Nyeri market on April 13, 2015. In addition to the expected rise in the cost of living (inflation), a weaker currency has a wider impact on the economy, especially on interest rates. PHOTOS | FILE 

By GEORGE BODO

The rate of depreciation of the Kenya shilling against the US dollar this year has been unusually fast-paced.

Since the year began, the shilling has depreciated by 4.1 per cent, almost equalling the 4.8 per cent cumulative depreciation in 2014.

For a small open economy like Kenya’s, this trend is worrying because these massive depreciations in the currency end up increasing the cost of living and the cost of doing business.

Conflict of interest issues face Uhuru appointees to top jobs

Politics and policy

From left: Mr John Ngumi, Kenya Pipeline Corporation (KPC) board chairman; Mr James Ndegwa, Capital Markets Authority (CMA) chairman; and Dr Gachao Kiuna, Kenya Investment Authority (KIA) board member. PHOTOS | FILE 

By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com

In Summary

• Mr James Ndegwa, CMA chairman; Mr John Ngumi, KPC board chairman; and Dr Gachao Kiuna, KIA board member face a huge conflict of interest burden that could complicate their performance in the new positions.

Three of President Uhuru Kenyatta’s recent appointees to the boards of State corporations and regulatory agencies are facing a huge conflict of interest burden that market watchers said could complicate their performance in the new positions.

Productivity-based wages are good for Kenya’s economy

Opinion and Analysis

 

President Uhuru Kenyatta. PHOTO | FILE 

By ZIPPORAH MAINA

As the world marks Labour Day on Friday, industry continues to urge the Kenyan government to move to a wage system based on productivity.

Last year a good precedent was set when the President made no ceremonial wage increments announcement on Labour Day.

Naming CBK governor will calm markets

Opinion and Analysis

 

Central Bank of Kenya headquarters in Nairobi. PHOTO | FILE 

By JAINDI KISERO, jkisero@ke.nationmedia.com

The financial markets are in a state of panic. Without a clear communication from the Central Bank of Kenya – and without clear direction on how the monetary authority expects the shilling to behave in the coming weeks – our currency may be headed for a free fall.

Agoa textile exports lift Kenya, US trade 27.9pc

Politics and policy

A textile factory at an EPZ. Kenya plans to set up a fully serviced Textile City in the country as part of the ongoing efforts to revamp the ailing textile industry that has suffered from lack of enough raw material, following the collapse of the cotton sector. PHOTO | FILE 

By GERALD ANDAE, gandae@ke.nationmedia.com

In Summary

• Agoa programme allows Kenya and other Sub-Saharan African countries to export identified goods at preferential terms to the US, exempting them from paying tax.
• The rise in Agoa exports helped lift employment in Kenya’s export processing zones to 37,758 workers, up from 32,932 in 2013 and 24,114 in 2010.
• The Agoa initiative is expected to end this year after the initial deadline of September 2012 was extended by the US law makers.

2014 as State moves to open up rural areas

A section of the Southern Bypass off Mombasa Road. PHOTO | DIANA NGILA |   NATION MEDIA GROUP

By KIARIE NJOROGE, gkiarie@ke.nationmedia.com

In Summary

• This pushed the total paved roads network to 13,000km last year, up from 11,230 in 2013 and 10,900km in 2010.
• The growth comes as the country is looking to enter a period of more intense road development under the annuity programme that will see 10,000km paved in the next five years.
• The growth in the length of paved roads corresponds to a huge jump in the resources allocated to the sector.

Nearly 1,800 kilometres of roads were paved last year as the government moved to open up rural areas.

The newly paved roads are equivalent to what Kenya has developed in the four years to 2013, underlining the quest by President Uhuru Kenyatta’s government to increase motor ways over the next five years.

Be a golf tourist across country this long Labour Day weekend

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A cat watches golfers during the Nyali Open Golf tournament at the Nyali Golf and Country Club. PHOTO | GIDEON MAUNDU 

By CHARLES GACHERU

This long Labour Day weekend offers golfers an excellent opportunity to play more. And with international tourism slowing down, it is time the golfing fraternity stepped in and toured various parts of the country, playing golf and appreciating the scenery.