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Kenyans preference for moblie money transfer

Inversk Review



Many Kenyans prefer using mobile money transfer to pay their bills to using hard cash.

In the Communications Authority’s quarterly report data, it is shown that 103 mobile money transactions are being made per second across the country, which is a significant rise from 92 e-wallet transfers that were made the same period last year.

Out of the 103 transactions made per second 75 of them went into paying for commodities and different utilities such as electricity and water bills.

The value of mobile money transactions grew 13.5 per cent over the April-June period to Sh2.28 trillion compared to Sh1.92 trillion the same period last year.

This therefore means that Kenyans moved Sh23.96 billion on a daily basis between April and June, translating into Sh16.64 being transacted digitally per minute.

The Data by the Communications Authority shows active mobile money subscriptions increased to Sh32.6 million from Sh29.6 million in 2018 revealing that more Kenyans prefer using their mobile wallets to hard cash.

The result of this has also earned Kenya a spot among the six countries that are identified as leaders in the expansion of Africa’s global digital economy ( Mastercard Center for Inclusive Growth in collaboration with The Fletcher School at Tufts University in the US).

The value of e-commerce transactions accounted for 89.45 per cent of all mobile cash transfers at Sh1.95 trillion while person-to-person transactions were valued at Sh770.96 billion.

A total of 591.1 million transactions valued at Sh1.9 trillion were made through the mobile payment platforms (Paybill and Till Numbers),” CA said in the report.

This is a remarkably 34.26 per cent increase from Sh1.43 trillion used to pay bills the same period in 2018.

On the other hand, person-to-person transactions increased by Sh95.37 billion to Sh770.96 billion.

At least Sh8.08 trillion was transacted in the form of deposits and withdrawals as well as mobile commerce transfers during the 2018/19 financial year, 94.06 per cent of the value of Kenya’s GDP at Sh8.59 trillion.

Safaricom, through it’s M-Pesa platform, controlled 78.44 per cent of the mobile money market with transactions valued at Sh1.71 trillion.

However, both Airtel-money and Telkom’s T-Kash struggled to make lead in the mobile cash market cumulatively accounting for less than one per cent of total transactions at Sh843.95 million and Sh301.8 million respectively.

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Gold Value Inches Up As People Await The Closing Of The China-U.S Negotiation

News Team



Thursday recorded a tentatively higher edging of gold, ahead of the talk between U.S and China which had been set to gown in the midst of the day amid mixed signals over the prospects of the negotiations. As of 1204 GMT, spot gold was up to 0.1% at $1,506.96 per ounce, having hit a one-week peak of $1,516.77 in the session earlier.

U.S. gold was as low as 0.1% at $1,512.10. The senior vice president at precious metals trader MKS SA, Afshin Nabavi said there was an extremely nervous state in the gold market and everybody was really positive towards the price of gold, but at the same time everyone was looking for some kind of assurance or confirmation on the trade talks.

Recently presented data has shown an incredibly great weakening in global growth in the market as it has also been kept on edge by the ongoing negotiations between the United States and China. A recent report by the South China Morning Post indicated that the Chinese delegation was to exit Washington a day earlier than expected just after a minister-level meeting.

There are, however, reports which put forth the suggestion that the U.S government is possibly considering to lift the restrictions on Chinese technology giant Huawei. If by the 15th of December more negotiations will have broken out, nearly all goods which are imported from China, which are more than $500 billion worth, could be subjected to punitive tariffs.

As a result of this year’s low yield of gold of about $1,265.85 worth, mainly on the back of trade tensions and gloomy economic growth outlook, gold prices have risen by about 20%. Investors often use gold as a hedge against uncertainty in the political and financial domain.

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Kenya’s Inflation Drops To 3.83% As Economic Growth Slows To 5.6% In Q2 2019

News Team



Kenya’s overall year-on-year inflation fell to 3.83% in September, from 5.0% in August, the Kenya National Bureau of Statistics (KNBS) has disclosed.

However, the country’s economy grew by 5.6% in the second quarter of this year, down from expanding 6.4% in the same period a year earlier, the statistics office said on Monday.

In a report emailed from Nairobi on Monday, the national statistics body noted that while a number of sectors posted impressive performances, the overall growth was curtailed mostly by a slowdown in activities of agriculture, manufacturing and transportation.

“Agriculture’s performance, as well as that of electricity and water supply, was mostly hampered by a delay in the onset of the long rains. The transportation industry was negatively impacted on by rise in prices of fuel,”

“On the other hand, accommodation and food services; information and communication; wholesale and retail trade; and construction industries maintained high growths and thereby supported the overall gross domestic product (GDP) growth,” the KNBS said.

According to the statistics bureau, between August and September 2019, food and non-alcoholic drinks index decreased by 0.40 percent due to a drop-in price of some foodstuffs outweighing increases recorded in others.

  “The ‘year on year’ food inflation dropped from 7.13 percent in August 2019 to 6.31 per cent in September 2019,” it said.

In September 2019, prices of carrots, cabbages and tomatoes decreased by 9.80, 6.32 and 4.14 percent, respectively.

The price of sugar registered a 24 per cent drop with a kilogram retailing at Sh106 last month from Sh140 last year. Irish potatoes, kales and onions similarly recorded significant drops in prices with a kilogram of each going down by 15, 18 and eight per cent respectively compared to retail prices recorded over a similar period last year. The Standard newspaper reported on Tuesday.

  Zachary Mwangi, KNBS director general observed that the agricultural sector is estimated to have grown by 4.1 percent compared to 6.5 percent in a similar period last year.

“The slowed growth was mainly attributed to delayed long rains that somewhat curtailed agricultural production. However, performance of the sector was supported by a 17.6 percent increase in the volume of cut flowers from 35,800 metric tons in the second quarter of 2018 to 42,100 metric tons in the review period,” Mwangi said.

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Kenya Ranked 5th as Investment-friendly Environment in Africa

Inversk Review



The Africa Risk-Reward Index which ranked 26 African countries based on investment potential awarded Kenya 6.27 points out of 10 earning it the fifth position out of the total.

Ethiopia tops the rewards sub-index, with eight points, followed by Egypt (6.7), Ivory Coast (6.6) and Tanzania (6.3). Ethiopia’s high reward score is attributed, largely, to its huge market of 100 million people, and also the process of liberalizing various sectors such as telecommunications, aviation and financial services.

The Africa Risk-Reward Index is made up of two strongholds which include rewards and risks. The rewards are tested on four precise bases including economic growth forecasts economic size, structure and demographics.

Among them all, economic growth outlook carries the heaviest weight in the reward score, as this is a major factor influencing any investment opportunities.

Kenya’s splendid performance is linked to the efforts to take full advantage of opportunities granted by the East African Community (EAC) by pushing for the removal of tariff and non-tariff barriers to trade, as well as pitching for free movement within the region, which was announced by the President, Uhuru Kenyatta, while addressing the 42nd General Council of the Organization of African Trade Union Unity (Oatuu)

On the downside, Kenya is ranked as the 16th most risky place to invest in whereas the Democratic Republic of Congo (DRC) takes the lead in that sect with an eight out of 10 score.In contrast, Mauritius is regarded as the safest.

In the East African Community, Kenya comes in second after Tanzania. This is because, Tanzania performs better than Kenya when it comes to political stability.

“Unlike Kenya, where ethno-regional tensions produce cyclical instability around elections, political stability risks in Tanzania are low in light of broader social cohesion under the ruling Chama Cha Mapinduzi party,” says the report.

The challenges that Tanzania bares are her protectionist attitude towards her neighbors, highlighting occasional blockages of goods from other EAC countries, as well as President John Magufuli’s nationalist stances on the extractives sector.

Kenya came third in the EAC after Tanzania and Uganda. Rwanda has been ranked to have the least risk in the region. According to the World Bank, it has been hailed for improvements in government bureaucracy and reforms that encourage international investment. It is also the highest-ranked country in the bloc on ease of doing business.

Nigeria, Morocco, South Africa, Algeria and Angola are some of the countries that were outdone by Kenya despite being perceived as countries with larger economies by the 2018 Gross Domestic Product value data from World Bank.

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