Mwanza vs Nakuru
Mwanza vs Nakuru
- Thread starter Geza Ulole
- Start date
ichoboy01
JF-Expert Member
- Mar 6, 2017
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au akili zenu hua zinafkiri kua na uchumi mkubwa ndio kupunguza umaskini na ajira, swali hua linakuja uchumi wa kenya umeshikwa na nani kama sio wageni, nenda usome vzr uchumi wenu uko mikononi kwa kina nani? alafu ujiulize swali kwann kenya bado watu wake wengi maskini na kwann kenya inaongoza na unemployment rate na kwanini kenya ina gap kubwa kati ya tajiri na maskini ukipata jawabu uje tuongee hapa, hapa hakuna porojo uje na majibu ya kisomi
ichoboy01
JF-Expert Member
- Mar 6, 2017
- 79,360
- 154,913
na kama nyie hua munajiona muna uchumi mkubwa unajua sababu kubwa kwann kenya imekumbwa na baa la njaa, basi mm jibu nakupa tanzania mwaka jana 2016 ilizuia mahindi na mchele kwenda kenya ndio mim nakwambia hvi kenya inalishwa na tanzania na kama unabisha niambie
saadeque
JF-Expert Member
- Feb 23, 2015
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we ni mbumbumbu kweli....eti likoni slum.na unahakika hapa ni likoni
LangatKipro
JF-Expert Member
- Jul 16, 2016
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Statistics tell us more about kenya rather than stories and propaganda. Even the most negatives sites and news vendors still acknowledge kenya's place in Africa.And this is what I like the most not stories and propaganda
Kenya FDI
East Africa’s largest economy, Kenya, is one of the leading destinations for foreign direct investment (FDI) in Africa.
KENYA | SNAPSHOT | APRIL 2016
A total of $989 million in FDI entered Kenya in 2014. The country captured 8.5% of total Africa FDI inflows in 2014. Moreover, 57 FDI projects were registered in 2014 in the country. The auto industry, as well as the agriculture, logistics, infrastructure, and ICT sectors are the top areas for FDI in Kenya. The 10 countries with the highest investments in Kenya are the US, India, the UK, Mauritius, Israel, Japan, Netherlands, Belgium, China, and South Africa.
Source: UNCTAD
Kenya has been speeding up its economic reforms to boost the country’s business landscape, and to mitigate against risks that could dampen growth prospects. The country’s GDP growth rate stands at 5.3%, and its GDP rate at $60.9 billion in 2014. Kenya’s GDP per capita reached $1,358 in 2014. The World Bank predicts that Kenya’s economy will grow at 5.9% in 2016, and 6% in 2017. However, Kenya continues to face its own unique challenges. The country’s deteriorated fiscal situation is the primary reason why both Standard & Poor’s and Fitch Ratings downgraded the country’s outlook from stable to negative in 2015.
Source: UNCTAD
Kenya has become one of Africa’s hotbeds of innovation in recent years. The government has a five year strategic plan to transform the country into a high-tech hub in Africa. Nairobi is currently the most advanced city in Africa in terms of ICT use. According to a survey by the GSMA, entitled “The Mobile Economy in Sub-Saharan Africa 2015”, access to financial services more than doubled over seven years, reaching two-thirds of the population in 2013, helped by the presence of mobile financial services in Kenya. The survey also stated that Kenya is one of the biggest countries in Africa for app downloads, and it has the highest mobile penetration rate in East Africa, at 42%. The GSMA describes Kenya’s Nairobi as a Silicon Savannah, stating it has been the epicenter of the country’s innovation.
Source: World Bank
Renewables —
Ernst & Young ranks Kenya as one of the ‘rising stars’ in Africa in terms of its attractiveness for renewable energy investment. The government has invested $1.2bn to build solar power plants across the country. Kenya aims to generate half of its electricity through renewables by 2016. Kenya’s current installed generation capacity stands at 2,150 MW. It is predicted that the country possesses more than 7,000 MW of undeveloped geothermal energy resources in the Rift Valley area. The government plans to increase its generation capacity by 23,000 MW by 2030.
Google, one of the major investors in renewable energy, announced in 2015 that it would invest in a wind power project in Lake Turkana in Kenya. The project, which will be the world’s most efficient and the continent’s biggest wind farm, will hold 365 wind turbines. It is expected to generate close to 1,400 gigawatt-hours of power per year, accounting for close to 15% of Kenya’s total electricity consumption.
Kenya Top 10 Investors
US, India, UK, Mauritius, Israel, Japan, Netherlands, Belgium, China, South Africa
IIG Comment
Kenya is the leading growth and investment hotspot in Africa. It is expected that this economic growth will continue in the medium term. The government, which aims to transform Kenya into a middle-income country, is committed to improving the investment landscape. Tech innovations and renewables are the most promising sectors, having gained momentum in Kenya in recent years. Agriculture, real estate, tourism, and infrastructure projects are the leading areas for investment. Most forecasts show investor confidence in the country’s business climate to be strong. Despite the country’s ongoing security problems, Kenya offers huge investment opportunities for the global and regional players, and investors are likely to remain interested in the country.
Kenya: Nairobi Grabs Top Slot in FDI Destinations in Africa
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Nairobi edged out Johannesburg to become the top destination of Foreign Direct Investments (FDI) in Africa in 2015 reflecting improving investor confidence in Kenya.
A report by an investment monitoring platform, FDI Markets also shows that FDI flows into Kenya rose 37 per cent in 2015 compared to 2014 adding that Kenya also attracted 12.6 per cent of FDI inflows into Africa, second only to South Africa's 17.1 per cent.
"This is further compounded by Nairobi attracting the most FDI on the continent at city level in 2015, beating Johannesburg, which has held this accolade since 2010," notes the report.
The report attributes the sharp upward trend to favourable conditions for doing business in Kenya where an investor enjoys a 10 year tax holiday upon setting shop and are allowed to repatriate all profits.
Also read: Kenya eyes Sh200bn in foreign investment
Kenya has attracted notable private equity and grants that are being used to fund public infrastructure projects such as the Standard Gauge Railway, Lamu Berth-cum railway line to Ethiopia and private projects in real estate, hospitality as well as industrial development.
Social impact energy projects
The reports shows that foreigners invested in at least 78 projects in Kenya last year due to growing confidence in the country's investment climate.
Among the projects attracting foreign investors to Kenya include planned social impact energy projects where private investors are putting up wind farms in Kajiado County's Ngong area, Nyandarua's Kinangop plateau and the largest wind farm in Africa which will be located in Turkana.
Several geothermal development projects are going on at Mount Longonot, Ol Karia and Menengai, all located in Nakuru County.
Three motor vehicle assembly plants are also set for opening soon in Kiambu, Machakos and Mombasa counties while an array of industries are now under construction in various counties.
Nairobi's skyline continues to experience gross changes following multi-billion shilling investments in real estate and office development as well as retail malls that have attracted global attention from leading mall operators.
Kenya posts fastest rise in foreign direct investments
SUNDAY MAY 8 2016
emailMore by this Author
Kenya recorded the fastest rise in foreign direct investments (FDI) in Africa and the Middle East, at 47 per cent, that saw 84 projects in diverse sectors initiated in 2015.
The FDI intelligence website revealed that a total of 84 separate projects from real estate, renewable and geothermal energy as well as roads and railways worth Sh102 billion provided a huge chunk of new jobs for Kenyans.
The Standard Gauge Railway (SGR) with its estimated 25,000 employees is the largest project ever undertaken in Kenya and is expected to be scaled up after its first phase of 472km Nairobi-Mombasa new railway is completed by June next year.
Already the Cabinet has sanctioned construction of a Sh20 billion modern port at Kisumu that will complement gains made by SGR.
The report dubbed FDI Into Middle East and Africa for the past year noted that Kenya was third in terms of numbers of projects initiated after the United Arab Emirates (UAE) at 298 and South Africa at 118.
Kenya’s top investors are drawn from United States of America, India, United Kingdom, Mauritius, Israel, Japan, Netherlands, Belgium, China and South Africa.
Related Content
UAE retained its position as the top FDI destination by project numbers, accounting for 24 per cent of all projects while Bahrain recorded strong inward FDI growth during 2015, entering the top 10 by project numbers for the first time since 2012.
The report observes that Africa continued to attract more investors whereby it recorded 156 more FDI projects than the Middle East in 2015, a 98 per cent rise compared to 2014.
“Africa also continued to dominate job creation with 95,387 more jobs created than in the Middle East,” the report adds.
The economic reforms being spearheaded by the government are aimed at boosting the country’s business landscape and to mitigate against risks that could dampen growth prospects.
Apart from attracting FDIs to its doorstep, Kenya has also caught the eyes of financial-technologically driven companies following its successful mobile payment platform M-Pesa.
Most of the investment cash has gone into renewable energy exploitation that could see Kenya meet 50 per cent of its power needs from renewable sources.
Several geothermal plants are currently being developed at Silale I Baringo county, Menengai, Longonot and Ol Karia in Nakuru County which will see about 500MW added to the national grid next year.
Some 365 wind turbines are under construction in Lake Turkana region which is the biggest wind energy firm in Africa and the second biggest in the world and is expected to power the soon to be established oil fields in Northern Kenya.
“Agriculture, real estate, tourism and infrastructure projects are leading areas for investment,” it adds.
Interestingly, private and public learning institutions as well as private companies have roped in foreign funds and contractors in implementing projects mainly in the real estate and commercial development sector.
KENYA: FOREIGN INVESTMENT
In this page: FDI in Figures | Why You Should Choose to Invest in Kenya | Procedures Relative to Foreign Investment |Investment Opportunities
Doing Business 2016 report issued by the World Bank, Kenya ranks 108th out of 189 countries, a gain of 28 places compared to 2015. In 2015, Kenya simplified procedures for business creation and the transfer of ownership and improved access to credit and electricity. In the coming years, the simplification of the conditions for obtaining business licenses, alongside the development of public-private partnerships as part of the 'Vision 2030' strategy, should have a positive influence on FDI inflows.
In addition, most sectors are open to foreign investment. In recent years, the telecommunications sector has attracted the most FDI, thanks to the arrival of fibre optics in 2009-2010. The other sectors attracting FDI are banking and tourism.
The United Kingdom, the Netherlands, Belgium, China and South Africa are the main investors in Kenya.
Country Comparison For the Protection of Investors
Kenya Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 3.0 5.0 7.0 5.0
Index of Manager’s Responsibility** 2.0 4.0 9.0 5.0
Index of Shareholders’ Power*** 5.0 9.0 5.0
Index of Investor Protection**** 5.0 4.5 8.3 5.0
Source: Doing Business - 2016.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
Foreign Direct Investment 2013 2014 2015
FDI Inward Flow (million USD) 514 1,051 1,437
FDI Stock (million USD) 3,390 4,441 5,878
Number of Greenfield Investments*** 78 62 96
FDI Inwards (in % of GFCF****) 4.5 7.6 10.4
FDI Stock (in % of GDP) 6.2 7.3 9.6
Source: UNCTAD - 2016.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Company Act, promulgated in 2015, was supposed to compel a foreign company to reserve at least 30% of its capital to Kenyan citizens. However, that clause was suspended. Despite these questions which remain unresolved, the law modernises registration procedures and operations for companies. In 2015, the Business Registration Services (BRS) Act set up the Business Registration Service. This new law supervises company registration and assigns to counties the registration of the name and concepts of a company, which cuts costs of registering a company. The Kenyan Government also introduced the Insolvency Act in 2015 in order to improve the legal framework in case of bankruptcy of a company.
Bilateral Investment Conventions Signed By Kenya
Kenya has signed 14 bilateral investment conventions.
National Police Service Commission
Ministry of Mining
Kenya Industrial Property Institute
Kenya Investments Authority
Requests For Specific Authorisations
The only major sectors in which investment (foreign and domestic) is limited are those where state companies still enjoy a legal monopoly. These monopolies are almost exclusively limitedto infrastructure in the fields of energy, telecommunications and ports.
Find out more about Investment Service Providers in Kenya on GlobalTrade.net, the Directory for International Trade Service Providers.
Kenya Investment Authority (KIA)
Economic Developments and Prospects in Kenya - African Economic Outlook
Tenders, Projects and Public Procurement
Tenders Kenya, Tenders in Kenya
Fontier Market Network, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
Kenya FDI
East Africa’s largest economy, Kenya, is one of the leading destinations for foreign direct investment (FDI) in Africa.
KENYA | SNAPSHOT | APRIL 2016
A total of $989 million in FDI entered Kenya in 2014. The country captured 8.5% of total Africa FDI inflows in 2014. Moreover, 57 FDI projects were registered in 2014 in the country. The auto industry, as well as the agriculture, logistics, infrastructure, and ICT sectors are the top areas for FDI in Kenya. The 10 countries with the highest investments in Kenya are the US, India, the UK, Mauritius, Israel, Japan, Netherlands, Belgium, China, and South Africa.
Source: UNCTAD
Kenya has been speeding up its economic reforms to boost the country’s business landscape, and to mitigate against risks that could dampen growth prospects. The country’s GDP growth rate stands at 5.3%, and its GDP rate at $60.9 billion in 2014. Kenya’s GDP per capita reached $1,358 in 2014. The World Bank predicts that Kenya’s economy will grow at 5.9% in 2016, and 6% in 2017. However, Kenya continues to face its own unique challenges. The country’s deteriorated fiscal situation is the primary reason why both Standard & Poor’s and Fitch Ratings downgraded the country’s outlook from stable to negative in 2015.
Source: UNCTAD
Kenya has become one of Africa’s hotbeds of innovation in recent years. The government has a five year strategic plan to transform the country into a high-tech hub in Africa. Nairobi is currently the most advanced city in Africa in terms of ICT use. According to a survey by the GSMA, entitled “The Mobile Economy in Sub-Saharan Africa 2015”, access to financial services more than doubled over seven years, reaching two-thirds of the population in 2013, helped by the presence of mobile financial services in Kenya. The survey also stated that Kenya is one of the biggest countries in Africa for app downloads, and it has the highest mobile penetration rate in East Africa, at 42%. The GSMA describes Kenya’s Nairobi as a Silicon Savannah, stating it has been the epicenter of the country’s innovation.
Source: World Bank
Renewables —
Ernst & Young ranks Kenya as one of the ‘rising stars’ in Africa in terms of its attractiveness for renewable energy investment. The government has invested $1.2bn to build solar power plants across the country. Kenya aims to generate half of its electricity through renewables by 2016. Kenya’s current installed generation capacity stands at 2,150 MW. It is predicted that the country possesses more than 7,000 MW of undeveloped geothermal energy resources in the Rift Valley area. The government plans to increase its generation capacity by 23,000 MW by 2030.
Google, one of the major investors in renewable energy, announced in 2015 that it would invest in a wind power project in Lake Turkana in Kenya. The project, which will be the world’s most efficient and the continent’s biggest wind farm, will hold 365 wind turbines. It is expected to generate close to 1,400 gigawatt-hours of power per year, accounting for close to 15% of Kenya’s total electricity consumption.
Kenya Top 10 Investors
US, India, UK, Mauritius, Israel, Japan, Netherlands, Belgium, China, South Africa
IIG Comment
Kenya is the leading growth and investment hotspot in Africa. It is expected that this economic growth will continue in the medium term. The government, which aims to transform Kenya into a middle-income country, is committed to improving the investment landscape. Tech innovations and renewables are the most promising sectors, having gained momentum in Kenya in recent years. Agriculture, real estate, tourism, and infrastructure projects are the leading areas for investment. Most forecasts show investor confidence in the country’s business climate to be strong. Despite the country’s ongoing security problems, Kenya offers huge investment opportunities for the global and regional players, and investors are likely to remain interested in the country.
Kenya: Nairobi Grabs Top Slot in FDI Destinations in Africa
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Nairobi edged out Johannesburg to become the top destination of Foreign Direct Investments (FDI) in Africa in 2015 reflecting improving investor confidence in Kenya.
A report by an investment monitoring platform, FDI Markets also shows that FDI flows into Kenya rose 37 per cent in 2015 compared to 2014 adding that Kenya also attracted 12.6 per cent of FDI inflows into Africa, second only to South Africa's 17.1 per cent.
"This is further compounded by Nairobi attracting the most FDI on the continent at city level in 2015, beating Johannesburg, which has held this accolade since 2010," notes the report.
The report attributes the sharp upward trend to favourable conditions for doing business in Kenya where an investor enjoys a 10 year tax holiday upon setting shop and are allowed to repatriate all profits.
Also read: Kenya eyes Sh200bn in foreign investment
Kenya has attracted notable private equity and grants that are being used to fund public infrastructure projects such as the Standard Gauge Railway, Lamu Berth-cum railway line to Ethiopia and private projects in real estate, hospitality as well as industrial development.
Social impact energy projects
The reports shows that foreigners invested in at least 78 projects in Kenya last year due to growing confidence in the country's investment climate.
Among the projects attracting foreign investors to Kenya include planned social impact energy projects where private investors are putting up wind farms in Kajiado County's Ngong area, Nyandarua's Kinangop plateau and the largest wind farm in Africa which will be located in Turkana.
Several geothermal development projects are going on at Mount Longonot, Ol Karia and Menengai, all located in Nakuru County.
Three motor vehicle assembly plants are also set for opening soon in Kiambu, Machakos and Mombasa counties while an array of industries are now under construction in various counties.
Nairobi's skyline continues to experience gross changes following multi-billion shilling investments in real estate and office development as well as retail malls that have attracted global attention from leading mall operators.
Kenya posts fastest rise in foreign direct investments
SUNDAY MAY 8 2016
emailMore by this Author
Kenya recorded the fastest rise in foreign direct investments (FDI) in Africa and the Middle East, at 47 per cent, that saw 84 projects in diverse sectors initiated in 2015.
The FDI intelligence website revealed that a total of 84 separate projects from real estate, renewable and geothermal energy as well as roads and railways worth Sh102 billion provided a huge chunk of new jobs for Kenyans.
The Standard Gauge Railway (SGR) with its estimated 25,000 employees is the largest project ever undertaken in Kenya and is expected to be scaled up after its first phase of 472km Nairobi-Mombasa new railway is completed by June next year.
Already the Cabinet has sanctioned construction of a Sh20 billion modern port at Kisumu that will complement gains made by SGR.
The report dubbed FDI Into Middle East and Africa for the past year noted that Kenya was third in terms of numbers of projects initiated after the United Arab Emirates (UAE) at 298 and South Africa at 118.
Kenya’s top investors are drawn from United States of America, India, United Kingdom, Mauritius, Israel, Japan, Netherlands, Belgium, China and South Africa.
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UAE retained its position as the top FDI destination by project numbers, accounting for 24 per cent of all projects while Bahrain recorded strong inward FDI growth during 2015, entering the top 10 by project numbers for the first time since 2012.
The report observes that Africa continued to attract more investors whereby it recorded 156 more FDI projects than the Middle East in 2015, a 98 per cent rise compared to 2014.
“Africa also continued to dominate job creation with 95,387 more jobs created than in the Middle East,” the report adds.
The economic reforms being spearheaded by the government are aimed at boosting the country’s business landscape and to mitigate against risks that could dampen growth prospects.
Apart from attracting FDIs to its doorstep, Kenya has also caught the eyes of financial-technologically driven companies following its successful mobile payment platform M-Pesa.
Most of the investment cash has gone into renewable energy exploitation that could see Kenya meet 50 per cent of its power needs from renewable sources.
Several geothermal plants are currently being developed at Silale I Baringo county, Menengai, Longonot and Ol Karia in Nakuru County which will see about 500MW added to the national grid next year.
Some 365 wind turbines are under construction in Lake Turkana region which is the biggest wind energy firm in Africa and the second biggest in the world and is expected to power the soon to be established oil fields in Northern Kenya.
“Agriculture, real estate, tourism and infrastructure projects are leading areas for investment,” it adds.
Interestingly, private and public learning institutions as well as private companies have roped in foreign funds and contractors in implementing projects mainly in the real estate and commercial development sector.
In this page: FDI in Figures | Why You Should Choose to Invest in Kenya | Procedures Relative to Foreign Investment |Investment Opportunities
Doing Business 2016 report issued by the World Bank, Kenya ranks 108th out of 189 countries, a gain of 28 places compared to 2015. In 2015, Kenya simplified procedures for business creation and the transfer of ownership and improved access to credit and electricity. In the coming years, the simplification of the conditions for obtaining business licenses, alongside the development of public-private partnerships as part of the 'Vision 2030' strategy, should have a positive influence on FDI inflows.
In addition, most sectors are open to foreign investment. In recent years, the telecommunications sector has attracted the most FDI, thanks to the arrival of fibre optics in 2009-2010. The other sectors attracting FDI are banking and tourism.
The United Kingdom, the Netherlands, Belgium, China and South Africa are the main investors in Kenya.
Country Comparison For the Protection of Investors
Kenya Sub-Saharan Africa United States Germany
Index of Transaction Transparency* 3.0 5.0 7.0 5.0
Index of Manager’s Responsibility** 2.0 4.0 9.0 5.0
Index of Shareholders’ Power*** 5.0 9.0 5.0
Index of Investor Protection**** 5.0 4.5 8.3 5.0
Source: Doing Business - 2016.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
Foreign Direct Investment 2013 2014 2015
FDI Inward Flow (million USD) 514 1,051 1,437
FDI Stock (million USD) 3,390 4,441 5,878
Number of Greenfield Investments*** 78 62 96
FDI Inwards (in % of GFCF****) 4.5 7.6 10.4
FDI Stock (in % of GDP) 6.2 7.3 9.6
Source: UNCTAD - 2016.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Company Act, promulgated in 2015, was supposed to compel a foreign company to reserve at least 30% of its capital to Kenyan citizens. However, that clause was suspended. Despite these questions which remain unresolved, the law modernises registration procedures and operations for companies. In 2015, the Business Registration Services (BRS) Act set up the Business Registration Service. This new law supervises company registration and assigns to counties the registration of the name and concepts of a company, which cuts costs of registering a company. The Kenyan Government also introduced the Insolvency Act in 2015 in order to improve the legal framework in case of bankruptcy of a company.
Bilateral Investment Conventions Signed By Kenya
Kenya has signed 14 bilateral investment conventions.
National Police Service Commission
Ministry of Mining
Kenya Industrial Property Institute
Kenya Investments Authority
Requests For Specific Authorisations
The only major sectors in which investment (foreign and domestic) is limited are those where state companies still enjoy a legal monopoly. These monopolies are almost exclusively limitedto infrastructure in the fields of energy, telecommunications and ports.
Find out more about Investment Service Providers in Kenya on GlobalTrade.net, the Directory for International Trade Service Providers.
Kenya Investment Authority (KIA)
Economic Developments and Prospects in Kenya - African Economic Outlook
Tenders, Projects and Public Procurement
Tenders Kenya, Tenders in Kenya
Fontier Market Network, Tenders in Africa
African Tenders
DgMarket, Tenders Worldwide
LangatKipro
JF-Expert Member
- Jul 16, 2016
- 359
- 438
You still need more statistics and facts...there it is
Kenya’s Nairobi ranked Africa’s top FDI destination
BUDGET DAY 2016 - SAEAST AFRICANEWS
by Trust Matsilele February 3, 2016 11:49 am 11 views0
Kenya’s capital, Nairobi, is attracting huge investment and industry experts reckon the government is working to ensure the trend is sustained.
A recent report by investment monitoring platform, FDI Markets ranked Nairobi as Africa’s top foreign direct investment destination as it saw inflows surging by 37 per cent in 2015.
The country’s ministry of Investment, Trade and Industry is also reviewing draft regulations on special economic zones in efforts to promote export growth in the country.
Kaigua Munyi, Research Analyst at Genghis Capital said apart from the obvious benefits of tax benefits that are offered by Nairobi, there were also Public Private Partnerships (PPPs) that were attracting companies into the country.
He added that the government had demonstrated to improve the infrastructure challenges the country has been facing.
“Infrastructure, ICT and energy took top priority on the country’s budget as the government committed about 373.9 billion Shillings ($37bn). Citizens should start to see deliverables on this investment between three to five years,” Manyi told CNBC Africa.
“We are also social impact energy projects especially the geothermal power plants were last year we saw commitments of up to 85 billion Shillings.
African economies have been hit by the low commodity prices and investors have been looking at alternative emerging economies of which Kenya is one of them.”
WHY NAIROBI IS AFRICA’S LEADING FDI CITY
Nairobi, the capital city of East Africa’s largest economy, has been ranked the most attractive destination for foreign direct investment (FDI) in Africa and a regional financial services hub, a position that clearly distinguishes it from the other 20 African cities in PwC’s latest report on the continent.
The report studies variables such as housing, transport, water and power, healthcare, education, public safety as well as factoring economic indicators like GDP, inequality, middle-class growth, ease of doing business and FDI inflow.
In the 2013/2014 financial year, FDI to Kenya was estimated to have surpassed Sh150 billion ($1.59 billion), owing to amplified confidence in the country’s investment climate, despite a heighten spat of terror attacks from al Shabaab, an Al Qaeda affiliated terror group. A number of lessons for other African states may lie within this success story, for which reason Ventures Africa has analyzed the key drivers of Nairobi’s accomplishment.
Rapidly developing infrastructure: Infrastructure plays a fundamental role in attractive a real investor. According to PwC, good infrastructure leads to even better cities as a strong correlation exists between infrastructure, human capital and economics, a situation that lures foreign investments. “As the accompanying graphic of infrastructure evolution illustrates, the developmental trajectory of successful cities from antiquity to the present has followed a certain course. Put schematically, it proceeds from infrastructure to human capital to, finally, a robust and self-perpetuating economy, some of whose profits finance urban life at its peak: from the arts and culture to environmental sustainability,” the report read.
As a country, Kenya has received substantial investment into its energy sector, maritime, aviation and rail. These have largely come from foreign capital championed by big time investors like China, Japan, Western Europe and the United States.
Leading the technology adoption train: The country is also an undeniable leader in technology adoption and advancement within the African continent. Its mobile banking platform (M-Pesa) is globally acclaimed to have deepened financial inclusion in the country and has now been adopted in parts of Europe and Asia. Nairobi also emerged the only African smart city among the list of top 20 smart cities globally.
The planned construction of the Konza technology city, a technology hub to be constructed as part of the nation’s Vision 2030, has also attracted the interest of key global tech giants including IBM (which set up the first African research lab in Nairobi last year), Google, Microsoft and Intel. Dubbed the African “Silicon Savannah”, the project is expected to be a key economic driver for the country in the coming years.
High value mineral resources: In addition to natural resources like coal and titanium, the recent discovery of oil and gas has contributed immensely to FDI inflows into Kenya over the past three years. Excited by the new prospects, firms from the UK, US and Canada have moved to quickly set up operational camps in Nairobi.
Growing consumer base: The growing consumer class in the country, anchored on a fast-expanding middle class, has provided perfect business opportunities for all sorts of consumer goods. Telco manufacturers are keen to penetrate this space as are many other foreign companies in different sectors. South African retail giant Massmart is expected to make an entry into Kenya in May, trading under the “Game” brand name. Carrefour, a French retailer, has also, reportedly, signed up for a similar move.
By Emmanuel Iruobe
Move over South Africa: Kenya now Africa’s largest source of intra-regional investment
by Kate Douglas on '28 July 2016'
Kenya’s leading retailer, Nakumatt, has become a market leader in East Africa.
Kenyan companies have replaced South Africa’s as the largest intra-African investor group, according to EY’s Africa attractiveness programme 2016,Staying the course report, released this week.
This title is determined by the number of outward foreign direct investment (FDI) projects into other parts of Africa (as opposed to their value), which Kenya managed to more than double – from 15 projects in 2014 to 36 in 2015.
As a result, Kenya is the seventh leading source country of FDI into Africa globally, jumping up from 13th position in 2014.
South African investors, on the other hand, are showing less activity in the rest of the continent. Last year companies launched only 33 projects, compared to 54 in 2014 and 65 the previous year. As a result, South Africa has gone from Africa’s second-leading source of FDI projects globally, to eighth.
However, in terms of the value of these projects, both Morocco (US$3.4bn) and South Africa ($2bn) rank ahead of Kenya ($1bn).
While South African companies were some of the first to venture into the rest of the continent, Kenyan businesses are beginning to catch up.
Although they have mostly been focused on the East Africa region, a number of players are looking further afield. For example, Kenya’s Equity Bank has expanded to Uganda, Tanzania, Rwanda and South Sudan – but has expressed interest in entering an additional 10 African countries over the next decade.
Kenyan supermarket chain Nakumatt has also managed to become a key regional player. Over the years it has kept South Africa’s leading retailer, Shoprite, from gaining market share in the region. Shoprite was one of the pioneer retailers to expand across the continent and today has operations in 15 countries. But, in East Africa, it only has a presence in Uganda.
In 2013, Shoprite exited Tanzania after 12 years in the market and its stores where acquired by Nakumatt.
Another Kenyan retailer, Uchumi Supermarkets, shut down its loss-making stores in Uganda and Tanzania last year, but is reportedly considering expanding to Nigeria,Ethiopia and the Democratic Republic of Congo.
Services have also been a key focus of Kenya’s FDI activity into Africa. According to EY’s report, financial and business services accounted for nearly 78% of the country’s projects in the region last year.
What makes Nairobi Africa's 'most intelligent' city
by Alex Court, for CNN
Updated 1230 GMT (2030 HKT) February 10, 2015
Photos: Africa's 'most intelligent' city revealed
Future techies – Experts have also praised the government's Vision 2030 development plan for having a strong emphasis on the importance of technology and ICT in schools. With 15 million children in Kenya's education system, it seems this is key if the country will confront the challenges of a connected economy.
Hide Caption
5 of 8
Photos: Africa's 'most intelligent' city revealed
Intelligent city – In it's Global Cities report, consulting firm A.T. Kearny, identifies Nairobi as one of two sub-Saharan cities likely to achieve developed status within 20 years. The city is identified as an "important center of regional politics" and the authors say the fact IBM is building a research laboratory illustrates it is a place advancing its global positioning.
Hide Caption
6 of 8
Photos: Africa's 'most intelligent' city revealed
Growing Fast – And an Economist Intelligence Unit report commissioned by Citigroup in 2012 says Nairobi is expected to be among the world's 40 fastest-growing cities between 2010 and 2016. The same report ranks the Kenyan capital as the fifth most competitive city in Africa.
Hide Caption
7 of 8
Photos: Africa's 'most intelligent' city revealed
Underwater web – But it's not just Nairobi which has impressive connectivity. The East African Marine System (Teams) is a 3,100 mile long fibre-optic undersea cable linking Mombasa with the UAE. The $130 million project to bring high-speed internet to Kenyans, is a joint venture between the government of Kenya and UAE-based operator Etisalat.
Hide Caption
8 of 8
Photos: Africa's 'most intelligent' city revealed
Global City – Kenya's busy capital city, Nairobi, has been crowned the most intelligent city in Africa by the Intelligent Community Forum. Click through for the key reasons experts think the city is particularly well placed to deal with the challenges of the broadband economy.
Hide Caption
1 of 8
Photos: Africa's 'most intelligent' city revealed
Payment prowess – Nairobi is at the heart of the Kenya's mobile payments revolution - mobile money is commonly used by residents across the city, as well as by the local county government for fee payments. Safaricom's M-Pesa service, introduced in 2007, now handles $320 million in payments each month. The amount represents a quarter of Kenya's GDP. The service has encouraged economic activity by making banking services available to low-income citizens.
Hide Caption
2 of 8
Photos: Africa's 'most intelligent' city revealed
Incubating innovation – Nairobi has also welcomed incubation centers, such as iHub. The co-working space has become the epicenter of Kenya's burgeoning tech scene, playing host to technologists, investors, tech companies and hackers seeking to solve global issues through tech. "Many tech (and non tech) multinationals have their regional or continental headquarters here due to the strategic location of the city as well as the talent pool available," says Josiah Mugambi, iHub's executive director. "Many now recognize the potential for technology to be used to transform the way business is done."
Hide Caption
3 of 8
Photos: Africa's 'most intelligent' city revealed
University approach – The city is home to university innovation centers, such as the Chandaria Business Innovation and Incubation Center at Kenyatta University. The institute was founded by leading Kenyan industrialist, Manilal Chandaria, and seeks to train people to become job creators rather than job-seekers. "We are thinking through the challenges we have, like mortality in children, for example. Its amazing to see young people engaging with these issues and searching for solutions about such global issues," says George Kosimbei, the director of the institute.
Hide Caption
4 of 8
Photos: Africa's 'most intelligent' city revealed
Future techies – Experts have also praised the government's Vision 2030 development plan for having a strong emphasis on the importance of technology and ICT in schools. With 15 million children in Kenya's education system, it seems this is key if the country will confront the challenges of a connected economy.
Hide Caption
5 of 8
Photos: Africa's 'most intelligent' city revealed
Intelligent city – In it's Global Cities report, consulting firm A.T. Kearny, identifies Nairobi as one of two sub-Saharan cities likely to achieve developed status within 20 years. The city is identified as an "important center of regional politics" and the authors say the fact IBM is building a research laboratory illustrates it is a place advancing its global positioning.
Hide Caption
6 of 8
Photos: Africa's 'most intelligent' city revealed
Growing Fast – And an Economist Intelligence Unit report commissioned by Citigroup in 2012 says Nairobi is expected to be among the world's 40 fastest-growing cities between 2010 and 2016. The same report ranks the Kenyan capital as the fifth most competitive city in Africa.
Hide Caption
7 of 8
Photos: Africa's 'most intelligent' city revealed
Underwater web – But it's not just Nairobi which has impressive connectivity. The East African Marine System (Teams) is a 3,100 mile long fibre-optic undersea cable linking Mombasa with the UAE. The $130 million project to bring high-speed internet to Kenyans, is a joint venture between the government of Kenya and UAE-based operator Etisalat.
Hide Caption
8 of 8
Photos: Africa's 'most intelligent' city revealed
Global City – Kenya's busy capital city, Nairobi, has been crowned the most intelligent city in Africa by the Intelligent Community Forum. Click through for the key reasons experts think the city is particularly well placed to deal with the challenges of the broadband economy.
Hide Caption
1 of 8
Photos: Africa's 'most intelligent' city revealed
Payment prowess – Nairobi is at the heart of the Kenya's mobile payments revolution - mobile money is commonly used by residents across the city, as well as by the local county government for fee payments. Safaricom's M-Pesa service, introduced in 2007, now handles $320 million in payments each month. The amount represents a quarter of Kenya's GDP. The service has encouraged economic activity by making banking services available to low-income citizens.
Hide Caption
2 of 8
Photos: Africa's 'most intelligent' city revealed
Incubating innovation – Nairobi has also welcomed incubation centers, such as iHub. The co-working space has become the epicenter of Kenya's burgeoning tech scene, playing host to technologists, investors, tech companies and hackers seeking to solve global issues through tech. "Many tech (and non tech) multinationals have their regional or continental headquarters here due to the strategic location of the city as well as the talent pool available," says Josiah Mugambi, iHub's executive director. "Many now recognize the potential for technology to be used to transform the way business is done."
Hide Caption
3 of 8
Photos: Africa's 'most intelligent' city revealed
University approach – The city is home to university innovation centers, such as the Chandaria Business Innovation and Incubation Center at Kenyatta University. The institute was founded by leading Kenyan industrialist, Manilal Chandaria, and seeks to train people to become job creators rather than job-seekers. "We are thinking through the challenges we have, like mortality in children, for example. Its amazing to see young people engaging with these issues and searching for solutions about such global issues," says George Kosimbei, the director of the institute.
Hide Caption
4 of 8
Story highlights
CNN Marketplace Africa covers the macro trends impacting the region and also focuses on the continent's key industries and corporations.
(CNN)For a second year in a row, Kenya's busy capital city of Nairobi has been named the most intelligent city in Africa -- failing, however, to make it to the world's top seven finalists.
According to the Intelligent Community Forum, "intelligent communities" are those that have taken "conscious steps" to create an economy that can prosper in the "broadband economy." The group has recently released its latest rankings, recognizing the achievements of communities that have built inclusive, prosperous economies on a basis of information and communication technologies.
Nairobi was the only African city to appear on their shortlist of 21 hubs throughout the world for 2015.
Intelligent Community Forum co-founder Robert Bell says: "We see a strong foundation being put into place [in Nairobi]: sensible, pro-growth government policy, a more diversified economy, and an innovation ecosystem of startups, international companies and universities.
"Nairobi certainly has the opportunity to build an exciting future for its citizens, businesses and institutions."
The Kenyan capital, however, didn't make it to the next round that will see seven communities around the world contesting in June for the 2015 Intelligent Community of the Year award -- in alphabetical order, the 2015 Top7 Intelligent Communities were Arlington County (U.S.), Columbus, (U.S.), Ipswich (Australia), Mitchell (U.S.), New Taipei City (Taiwan), Rio de Janeiro (Brazil) and Surrey (Canada).
Nairobi ranked the most innovative city in Africa, Middle East
January 25, 2016
0SHARES
178
2
The CMI study notes Nairobi’s position as the centre of technology in Africa
By KEN MACHARIA, A new urban cities study has ranked Nairobi the most innovative city in Middle-East, Africa and among the top twenty cities in the world renowned for its innovation, livability and capacity to re-invent itself.
The City Momentum Index (CMI) study, conducted by global professional services and management company JLL, looked at 10 key areas including demographics, connectivity, technology and R&D, education, economic output and corporate activity.
Nairobi moved four places up from 15th position as the most dynamic city last year to sit at position 11 in 2016 out of the 120 cities surveyed.
“Nairobi’s impressive demographic and economic momentum is necessitating the creation of infrastructure and real estate to support the city’s expansion as it registers among the highest levels of office and retail construction and absorption of any city in the CMI,” the study states.
The CMI study notes Nairobi’s position as the centre of technology in Africa, and with a growing number of tech incubators and venture capital funds setting base in the city, as factors contributing to the city’s expanding influence in the world.
“The start of construction of Konza Techno City and devolution is laying a solid foundation for the future,” adds the study.
Nairobi is ranked ahead of mega cities like Shenzen, Tokyo, Hyderabad and Seoul. London topped the list for the second year in a row for its economic growth and real estate structure as well as initiatives that are transforming transport, such as the research centre currently being developed at White City.
Other cities that made it to the top five include Dublin, Silicon Valley, Bangalore and Boston.
“Bangalore (4) and Shenzhen (12) are home to some of the world’s fastest-growing tech companies, and Nairobi (11) is also making a concerted effort to move up the value chain and improve global connectivity,” the study states.
In addition to technology, the study says, real estate is another major factor in city momentum as it can enable productivity, creativity and entrepreneurship while creating a sense of community for its citizens in a sustainable urban model.
“Real estate no longer simply houses businesses – it attracts corporations and talent, and cities need to ensure their built environment provides the smart, productive commercial buildings that corporations, capital and talent now demand,” said Jeremy Kelly, director, global research for JLL.
Nairobi Governor Evans Kidero is excited about the study, saying it reveals that its importance stretches far beyond its role as an administrative or political centre.
“I am proud of Nairobi’s continuing position as one of the continent’s major urban hubs. The city is now in its 53rd year as the capital of an Independent Kenya. Yet its importance stretches far beyond its role as an administrative or political centre,” Kidero noted.
In 2015, Nairobi was ranked the most successful city in Africa by The Intelligent Community Forum (IFC).
The statistics are more. Let me not waste my time dwelling on it. Kenya may still be having its own challenges as a developing country but it is surely addressing those challenges and changing for the better
Kenya’s Nairobi ranked Africa’s top FDI destination
BUDGET DAY 2016 - SAEAST AFRICANEWS
by Trust Matsilele February 3, 2016 11:49 am 11 views0
Kenya’s capital, Nairobi, is attracting huge investment and industry experts reckon the government is working to ensure the trend is sustained.
A recent report by investment monitoring platform, FDI Markets ranked Nairobi as Africa’s top foreign direct investment destination as it saw inflows surging by 37 per cent in 2015.
The country’s ministry of Investment, Trade and Industry is also reviewing draft regulations on special economic zones in efforts to promote export growth in the country.
Kaigua Munyi, Research Analyst at Genghis Capital said apart from the obvious benefits of tax benefits that are offered by Nairobi, there were also Public Private Partnerships (PPPs) that were attracting companies into the country.
He added that the government had demonstrated to improve the infrastructure challenges the country has been facing.
“Infrastructure, ICT and energy took top priority on the country’s budget as the government committed about 373.9 billion Shillings ($37bn). Citizens should start to see deliverables on this investment between three to five years,” Manyi told CNBC Africa.
“We are also social impact energy projects especially the geothermal power plants were last year we saw commitments of up to 85 billion Shillings.
African economies have been hit by the low commodity prices and investors have been looking at alternative emerging economies of which Kenya is one of them.”
WHY NAIROBI IS AFRICA’S LEADING FDI CITY
Nairobi, the capital city of East Africa’s largest economy, has been ranked the most attractive destination for foreign direct investment (FDI) in Africa and a regional financial services hub, a position that clearly distinguishes it from the other 20 African cities in PwC’s latest report on the continent.
The report studies variables such as housing, transport, water and power, healthcare, education, public safety as well as factoring economic indicators like GDP, inequality, middle-class growth, ease of doing business and FDI inflow.
In the 2013/2014 financial year, FDI to Kenya was estimated to have surpassed Sh150 billion ($1.59 billion), owing to amplified confidence in the country’s investment climate, despite a heighten spat of terror attacks from al Shabaab, an Al Qaeda affiliated terror group. A number of lessons for other African states may lie within this success story, for which reason Ventures Africa has analyzed the key drivers of Nairobi’s accomplishment.
Rapidly developing infrastructure: Infrastructure plays a fundamental role in attractive a real investor. According to PwC, good infrastructure leads to even better cities as a strong correlation exists between infrastructure, human capital and economics, a situation that lures foreign investments. “As the accompanying graphic of infrastructure evolution illustrates, the developmental trajectory of successful cities from antiquity to the present has followed a certain course. Put schematically, it proceeds from infrastructure to human capital to, finally, a robust and self-perpetuating economy, some of whose profits finance urban life at its peak: from the arts and culture to environmental sustainability,” the report read.
As a country, Kenya has received substantial investment into its energy sector, maritime, aviation and rail. These have largely come from foreign capital championed by big time investors like China, Japan, Western Europe and the United States.
Leading the technology adoption train: The country is also an undeniable leader in technology adoption and advancement within the African continent. Its mobile banking platform (M-Pesa) is globally acclaimed to have deepened financial inclusion in the country and has now been adopted in parts of Europe and Asia. Nairobi also emerged the only African smart city among the list of top 20 smart cities globally.
The planned construction of the Konza technology city, a technology hub to be constructed as part of the nation’s Vision 2030, has also attracted the interest of key global tech giants including IBM (which set up the first African research lab in Nairobi last year), Google, Microsoft and Intel. Dubbed the African “Silicon Savannah”, the project is expected to be a key economic driver for the country in the coming years.
High value mineral resources: In addition to natural resources like coal and titanium, the recent discovery of oil and gas has contributed immensely to FDI inflows into Kenya over the past three years. Excited by the new prospects, firms from the UK, US and Canada have moved to quickly set up operational camps in Nairobi.
Growing consumer base: The growing consumer class in the country, anchored on a fast-expanding middle class, has provided perfect business opportunities for all sorts of consumer goods. Telco manufacturers are keen to penetrate this space as are many other foreign companies in different sectors. South African retail giant Massmart is expected to make an entry into Kenya in May, trading under the “Game” brand name. Carrefour, a French retailer, has also, reportedly, signed up for a similar move.
By Emmanuel Iruobe
Move over South Africa: Kenya now Africa’s largest source of intra-regional investment
by Kate Douglas on '28 July 2016'
Kenya’s leading retailer, Nakumatt, has become a market leader in East Africa.
Kenyan companies have replaced South Africa’s as the largest intra-African investor group, according to EY’s Africa attractiveness programme 2016,Staying the course report, released this week.
This title is determined by the number of outward foreign direct investment (FDI) projects into other parts of Africa (as opposed to their value), which Kenya managed to more than double – from 15 projects in 2014 to 36 in 2015.
As a result, Kenya is the seventh leading source country of FDI into Africa globally, jumping up from 13th position in 2014.
South African investors, on the other hand, are showing less activity in the rest of the continent. Last year companies launched only 33 projects, compared to 54 in 2014 and 65 the previous year. As a result, South Africa has gone from Africa’s second-leading source of FDI projects globally, to eighth.
However, in terms of the value of these projects, both Morocco (US$3.4bn) and South Africa ($2bn) rank ahead of Kenya ($1bn).
While South African companies were some of the first to venture into the rest of the continent, Kenyan businesses are beginning to catch up.
Although they have mostly been focused on the East Africa region, a number of players are looking further afield. For example, Kenya’s Equity Bank has expanded to Uganda, Tanzania, Rwanda and South Sudan – but has expressed interest in entering an additional 10 African countries over the next decade.
Kenyan supermarket chain Nakumatt has also managed to become a key regional player. Over the years it has kept South Africa’s leading retailer, Shoprite, from gaining market share in the region. Shoprite was one of the pioneer retailers to expand across the continent and today has operations in 15 countries. But, in East Africa, it only has a presence in Uganda.
In 2013, Shoprite exited Tanzania after 12 years in the market and its stores where acquired by Nakumatt.
Another Kenyan retailer, Uchumi Supermarkets, shut down its loss-making stores in Uganda and Tanzania last year, but is reportedly considering expanding to Nigeria,Ethiopia and the Democratic Republic of Congo.
Services have also been a key focus of Kenya’s FDI activity into Africa. According to EY’s report, financial and business services accounted for nearly 78% of the country’s projects in the region last year.
What makes Nairobi Africa's 'most intelligent' city
by Alex Court, for CNN
Updated 1230 GMT (2030 HKT) February 10, 2015
Photos: Africa's 'most intelligent' city revealed
Future techies – Experts have also praised the government's Vision 2030 development plan for having a strong emphasis on the importance of technology and ICT in schools. With 15 million children in Kenya's education system, it seems this is key if the country will confront the challenges of a connected economy.
Hide Caption
5 of 8
Photos: Africa's 'most intelligent' city revealed
Intelligent city – In it's Global Cities report, consulting firm A.T. Kearny, identifies Nairobi as one of two sub-Saharan cities likely to achieve developed status within 20 years. The city is identified as an "important center of regional politics" and the authors say the fact IBM is building a research laboratory illustrates it is a place advancing its global positioning.
Hide Caption
6 of 8
Photos: Africa's 'most intelligent' city revealed
Growing Fast – And an Economist Intelligence Unit report commissioned by Citigroup in 2012 says Nairobi is expected to be among the world's 40 fastest-growing cities between 2010 and 2016. The same report ranks the Kenyan capital as the fifth most competitive city in Africa.
Hide Caption
7 of 8
Photos: Africa's 'most intelligent' city revealed
Underwater web – But it's not just Nairobi which has impressive connectivity. The East African Marine System (Teams) is a 3,100 mile long fibre-optic undersea cable linking Mombasa with the UAE. The $130 million project to bring high-speed internet to Kenyans, is a joint venture between the government of Kenya and UAE-based operator Etisalat.
Hide Caption
8 of 8
Photos: Africa's 'most intelligent' city revealed
Global City – Kenya's busy capital city, Nairobi, has been crowned the most intelligent city in Africa by the Intelligent Community Forum. Click through for the key reasons experts think the city is particularly well placed to deal with the challenges of the broadband economy.
Hide Caption
1 of 8
Photos: Africa's 'most intelligent' city revealed
Payment prowess – Nairobi is at the heart of the Kenya's mobile payments revolution - mobile money is commonly used by residents across the city, as well as by the local county government for fee payments. Safaricom's M-Pesa service, introduced in 2007, now handles $320 million in payments each month. The amount represents a quarter of Kenya's GDP. The service has encouraged economic activity by making banking services available to low-income citizens.
Hide Caption
2 of 8
Photos: Africa's 'most intelligent' city revealed
Incubating innovation – Nairobi has also welcomed incubation centers, such as iHub. The co-working space has become the epicenter of Kenya's burgeoning tech scene, playing host to technologists, investors, tech companies and hackers seeking to solve global issues through tech. "Many tech (and non tech) multinationals have their regional or continental headquarters here due to the strategic location of the city as well as the talent pool available," says Josiah Mugambi, iHub's executive director. "Many now recognize the potential for technology to be used to transform the way business is done."
Hide Caption
3 of 8
Photos: Africa's 'most intelligent' city revealed
University approach – The city is home to university innovation centers, such as the Chandaria Business Innovation and Incubation Center at Kenyatta University. The institute was founded by leading Kenyan industrialist, Manilal Chandaria, and seeks to train people to become job creators rather than job-seekers. "We are thinking through the challenges we have, like mortality in children, for example. Its amazing to see young people engaging with these issues and searching for solutions about such global issues," says George Kosimbei, the director of the institute.
Hide Caption
4 of 8
Photos: Africa's 'most intelligent' city revealed
Future techies – Experts have also praised the government's Vision 2030 development plan for having a strong emphasis on the importance of technology and ICT in schools. With 15 million children in Kenya's education system, it seems this is key if the country will confront the challenges of a connected economy.
Hide Caption
5 of 8
Photos: Africa's 'most intelligent' city revealed
Intelligent city – In it's Global Cities report, consulting firm A.T. Kearny, identifies Nairobi as one of two sub-Saharan cities likely to achieve developed status within 20 years. The city is identified as an "important center of regional politics" and the authors say the fact IBM is building a research laboratory illustrates it is a place advancing its global positioning.
Hide Caption
6 of 8
Photos: Africa's 'most intelligent' city revealed
Growing Fast – And an Economist Intelligence Unit report commissioned by Citigroup in 2012 says Nairobi is expected to be among the world's 40 fastest-growing cities between 2010 and 2016. The same report ranks the Kenyan capital as the fifth most competitive city in Africa.
Hide Caption
7 of 8
Photos: Africa's 'most intelligent' city revealed
Underwater web – But it's not just Nairobi which has impressive connectivity. The East African Marine System (Teams) is a 3,100 mile long fibre-optic undersea cable linking Mombasa with the UAE. The $130 million project to bring high-speed internet to Kenyans, is a joint venture between the government of Kenya and UAE-based operator Etisalat.
Hide Caption
8 of 8
Photos: Africa's 'most intelligent' city revealed
Global City – Kenya's busy capital city, Nairobi, has been crowned the most intelligent city in Africa by the Intelligent Community Forum. Click through for the key reasons experts think the city is particularly well placed to deal with the challenges of the broadband economy.
Hide Caption
1 of 8
Photos: Africa's 'most intelligent' city revealed
Payment prowess – Nairobi is at the heart of the Kenya's mobile payments revolution - mobile money is commonly used by residents across the city, as well as by the local county government for fee payments. Safaricom's M-Pesa service, introduced in 2007, now handles $320 million in payments each month. The amount represents a quarter of Kenya's GDP. The service has encouraged economic activity by making banking services available to low-income citizens.
Hide Caption
2 of 8
Photos: Africa's 'most intelligent' city revealed
Incubating innovation – Nairobi has also welcomed incubation centers, such as iHub. The co-working space has become the epicenter of Kenya's burgeoning tech scene, playing host to technologists, investors, tech companies and hackers seeking to solve global issues through tech. "Many tech (and non tech) multinationals have their regional or continental headquarters here due to the strategic location of the city as well as the talent pool available," says Josiah Mugambi, iHub's executive director. "Many now recognize the potential for technology to be used to transform the way business is done."
Hide Caption
3 of 8
Photos: Africa's 'most intelligent' city revealed
University approach – The city is home to university innovation centers, such as the Chandaria Business Innovation and Incubation Center at Kenyatta University. The institute was founded by leading Kenyan industrialist, Manilal Chandaria, and seeks to train people to become job creators rather than job-seekers. "We are thinking through the challenges we have, like mortality in children, for example. Its amazing to see young people engaging with these issues and searching for solutions about such global issues," says George Kosimbei, the director of the institute.
Hide Caption
4 of 8
Story highlights
- Nairobi is the only African city to make it to the world's top21 "intelligent communities"
- The Kenyan capital, however, missed out of the top seven finalists
CNN Marketplace Africa covers the macro trends impacting the region and also focuses on the continent's key industries and corporations.
(CNN)For a second year in a row, Kenya's busy capital city of Nairobi has been named the most intelligent city in Africa -- failing, however, to make it to the world's top seven finalists.
According to the Intelligent Community Forum, "intelligent communities" are those that have taken "conscious steps" to create an economy that can prosper in the "broadband economy." The group has recently released its latest rankings, recognizing the achievements of communities that have built inclusive, prosperous economies on a basis of information and communication technologies.
Nairobi was the only African city to appear on their shortlist of 21 hubs throughout the world for 2015.
Intelligent Community Forum co-founder Robert Bell says: "We see a strong foundation being put into place [in Nairobi]: sensible, pro-growth government policy, a more diversified economy, and an innovation ecosystem of startups, international companies and universities.
"Nairobi certainly has the opportunity to build an exciting future for its citizens, businesses and institutions."
The Kenyan capital, however, didn't make it to the next round that will see seven communities around the world contesting in June for the 2015 Intelligent Community of the Year award -- in alphabetical order, the 2015 Top7 Intelligent Communities were Arlington County (U.S.), Columbus, (U.S.), Ipswich (Australia), Mitchell (U.S.), New Taipei City (Taiwan), Rio de Janeiro (Brazil) and Surrey (Canada).
Nairobi ranked the most innovative city in Africa, Middle East
January 25, 2016
0SHARES
178
2
The CMI study notes Nairobi’s position as the centre of technology in Africa
By KEN MACHARIA, A new urban cities study has ranked Nairobi the most innovative city in Middle-East, Africa and among the top twenty cities in the world renowned for its innovation, livability and capacity to re-invent itself.
The City Momentum Index (CMI) study, conducted by global professional services and management company JLL, looked at 10 key areas including demographics, connectivity, technology and R&D, education, economic output and corporate activity.
Nairobi moved four places up from 15th position as the most dynamic city last year to sit at position 11 in 2016 out of the 120 cities surveyed.
“Nairobi’s impressive demographic and economic momentum is necessitating the creation of infrastructure and real estate to support the city’s expansion as it registers among the highest levels of office and retail construction and absorption of any city in the CMI,” the study states.
The CMI study notes Nairobi’s position as the centre of technology in Africa, and with a growing number of tech incubators and venture capital funds setting base in the city, as factors contributing to the city’s expanding influence in the world.
“The start of construction of Konza Techno City and devolution is laying a solid foundation for the future,” adds the study.
Nairobi is ranked ahead of mega cities like Shenzen, Tokyo, Hyderabad and Seoul. London topped the list for the second year in a row for its economic growth and real estate structure as well as initiatives that are transforming transport, such as the research centre currently being developed at White City.
Other cities that made it to the top five include Dublin, Silicon Valley, Bangalore and Boston.
“Bangalore (4) and Shenzhen (12) are home to some of the world’s fastest-growing tech companies, and Nairobi (11) is also making a concerted effort to move up the value chain and improve global connectivity,” the study states.
In addition to technology, the study says, real estate is another major factor in city momentum as it can enable productivity, creativity and entrepreneurship while creating a sense of community for its citizens in a sustainable urban model.
“Real estate no longer simply houses businesses – it attracts corporations and talent, and cities need to ensure their built environment provides the smart, productive commercial buildings that corporations, capital and talent now demand,” said Jeremy Kelly, director, global research for JLL.
Nairobi Governor Evans Kidero is excited about the study, saying it reveals that its importance stretches far beyond its role as an administrative or political centre.
“I am proud of Nairobi’s continuing position as one of the continent’s major urban hubs. The city is now in its 53rd year as the capital of an Independent Kenya. Yet its importance stretches far beyond its role as an administrative or political centre,” Kidero noted.
In 2015, Nairobi was ranked the most successful city in Africa by The Intelligent Community Forum (IFC).
The statistics are more. Let me not waste my time dwelling on it. Kenya may still be having its own challenges as a developing country but it is surely addressing those challenges and changing for the better
ichoboy01
JF-Expert Member
- Mar 6, 2017
- 79,360
- 154,913
hutaki au sema nikuskie hahahahaha punguza ujuaji maana ukizidi sana unakua jinga
ichoboy01
JF-Expert Member
- Mar 6, 2017
- 79,360
- 154,913
hata ulete kitabu kizima lakin mm nimekuuliza maswali yangu nataka unijibu mr big economy nahitaji unijibu huo uchumi wa kenya umeshikwa na kina nani na kwanini? alafu unijibu maswali vzr yote niliokuuliza tena unijibu kwa facts sio porojo ili nikuoneshe kwanini kenya bado masikini sana na kwanini munaishi kwenye most poor slum in africa...jibu maswali yangu yote niliokuulizaYou still need more statistics and facts...there it is
Kenya’s Nairobi ranked Africa’s top FDI destination
BUDGET DAY 2016 - SAEAST AFRICANEWS
by Trust Matsilele February 3, 2016 11:49 am 11 views0
Kenya’s capital, Nairobi, is attracting huge investment and industry experts reckon the government is working to ensure the trend is sustained.
A recent report by investment monitoring platform, FDI Markets ranked Nairobi as Africa’s top foreign direct investment destination as it saw inflows surging by 37 per cent in 2015.
The country’s ministry of Investment, Trade and Industry is also reviewing draft regulations on special economic zones in efforts to promote export growth in the country.
Kaigua Munyi, Research Analyst at Genghis Capital said apart from the obvious benefits of tax benefits that are offered by Nairobi, there were also Public Private Partnerships (PPPs) that were attracting companies into the country.
He added that the government had demonstrated to improve the infrastructure challenges the country has been facing.
“Infrastructure, ICT and energy took top priority on the country’s budget as the government committed about 373.9 billion Shillings ($37bn). Citizens should start to see deliverables on this investment between three to five years,” Manyi told CNBC Africa.
“We are also social impact energy projects especially the geothermal power plants were last year we saw commitments of up to 85 billion Shillings.
African economies have been hit by the low commodity prices and investors have been looking at alternative emerging economies of which Kenya is one of them.”
WHY NAIROBI IS AFRICA’S LEADING FDI CITY
Nairobi, the capital city of East Africa’s largest economy, has been ranked the most attractive destination for foreign direct investment (FDI) in Africa and a regional financial services hub, a position that clearly distinguishes it from the other 20 African cities in PwC’s latest report on the continent.
The report studies variables such as housing, transport, water and power, healthcare, education, public safety as well as factoring economic indicators like GDP, inequality, middle-class growth, ease of doing business and FDI inflow.
In the 2013/2014 financial year, FDI to Kenya was estimated to have surpassed Sh150 billion ($1.59 billion), owing to amplified confidence in the country’s investment climate, despite a heighten spat of terror attacks from al Shabaab, an Al Qaeda affiliated terror group. A number of lessons for other African states may lie within this success story, for which reason Ventures Africa has analyzed the key drivers of Nairobi’s accomplishment.
Rapidly developing infrastructure: Infrastructure plays a fundamental role in attractive a real investor. According to PwC, good infrastructure leads to even better cities as a strong correlation exists between infrastructure, human capital and economics, a situation that lures foreign investments. “As the accompanying graphic of infrastructure evolution illustrates, the developmental trajectory of successful cities from antiquity to the present has followed a certain course. Put schematically, it proceeds from infrastructure to human capital to, finally, a robust and self-perpetuating economy, some of whose profits finance urban life at its peak: from the arts and culture to environmental sustainability,” the report read.
As a country, Kenya has received substantial investment into its energy sector, maritime, aviation and rail. These have largely come from foreign capital championed by big time investors like China, Japan, Western Europe and the United States.
Leading the technology adoption train: The country is also an undeniable leader in technology adoption and advancement within the African continent. Its mobile banking platform (M-Pesa) is globally acclaimed to have deepened financial inclusion in the country and has now been adopted in parts of Europe and Asia. Nairobi also emerged the only African smart city among the list of top 20 smart cities globally.
The planned construction of the Konza technology city, a technology hub to be constructed as part of the nation’s Vision 2030, has also attracted the interest of key global tech giants including IBM (which set up the first African research lab in Nairobi last year), Google, Microsoft and Intel. Dubbed the African “Silicon Savannah”, the project is expected to be a key economic driver for the country in the coming years.
High value mineral resources: In addition to natural resources like coal and titanium, the recent discovery of oil and gas has contributed immensely to FDI inflows into Kenya over the past three years. Excited by the new prospects, firms from the UK, US and Canada have moved to quickly set up operational camps in Nairobi.
Growing consumer base: The growing consumer class in the country, anchored on a fast-expanding middle class, has provided perfect business opportunities for all sorts of consumer goods. Telco manufacturers are keen to penetrate this space as are many other foreign companies in different sectors. South African retail giant Massmart is expected to make an entry into Kenya in May, trading under the “Game” brand name. Carrefour, a French retailer, has also, reportedly, signed up for a similar move.
By Emmanuel Iruobe
Move over South Africa: Kenya now Africa’s largest source of intra-regional investment
by Kate Douglas on '28 July 2016'
Kenya’s leading retailer, Nakumatt, has become a market leader in East Africa.
Kenyan companies have replaced South Africa’s as the largest intra-African investor group, according to EY’s Africa attractiveness programme 2016,Staying the course report, released this week.
This title is determined by the number of outward foreign direct investment (FDI) projects into other parts of Africa (as opposed to their value), which Kenya managed to more than double – from 15 projects in 2014 to 36 in 2015.
As a result, Kenya is the seventh leading source country of FDI into Africa globally, jumping up from 13th position in 2014.
South African investors, on the other hand, are showing less activity in the rest of the continent. Last year companies launched only 33 projects, compared to 54 in 2014 and 65 the previous year. As a result, South Africa has gone from Africa’s second-leading source of FDI projects globally, to eighth.
However, in terms of the value of these projects, both Morocco (US$3.4bn) and South Africa ($2bn) rank ahead of Kenya ($1bn).
While South African companies were some of the first to venture into the rest of the continent, Kenyan businesses are beginning to catch up.
Although they have mostly been focused on the East Africa region, a number of players are looking further afield. For example, Kenya’s Equity Bank has expanded to Uganda, Tanzania, Rwanda and South Sudan – but has expressed interest in entering an additional 10 African countries over the next decade.
Kenyan supermarket chain Nakumatt has also managed to become a key regional player. Over the years it has kept South Africa’s leading retailer, Shoprite, from gaining market share in the region. Shoprite was one of the pioneer retailers to expand across the continent and today has operations in 15 countries. But, in East Africa, it only has a presence in Uganda.
In 2013, Shoprite exited Tanzania after 12 years in the market and its stores where acquired by Nakumatt.
Another Kenyan retailer, Uchumi Supermarkets, shut down its loss-making stores in Uganda and Tanzania last year, but is reportedly considering expanding to Nigeria,Ethiopia and the Democratic Republic of Congo.
Services have also been a key focus of Kenya’s FDI activity into Africa. According to EY’s report, financial and business services accounted for nearly 78% of the country’s projects in the region last year.
The statistics are more. Let me not waste my time dwelling on it
LangatKipro
JF-Expert Member
- Jul 16, 2016
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I do not need to answer you on anything...you can continue leaving in your own dreamland that majority of Kenyans are poor ..the next time you wake up you will be shocked at whats happened.. The evidence of growing fast growing middle class in kenya should give you an idea about kenya's poverty if you are a critical thinker...it means many people are rising out of poverty in kenya and many more. Anyway that is not my task to explain to you
KENYA’S MIDDLE CLASS IS GROWING: HOW YOU CAN CASH IN
Mark Kapchanga · @kapchanga · March 12, 2015
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Mark Kapchanga[/paste:font]
Mark Kapchanga is a media and economic consultant. He is a former senior economics writer for The Standard newspaper in Kenya and is currently pursuing a PhD in business reporting.
Email Mark
@kapchanga
Christine Lagarde, managing director of the International Monetary Fund, dubbed Kenya’s economic gains over the last few years “nothing short of remarkable”. And few are benefiting more from this progress than the country’s burgeoning middle class.
With an average annual growth of 5%, the Kenyan middle class is expected to continue expanding, bringing the country closer to its grand plan of becoming a middle-income nation by 2030.
The middle-class population in Kenya now stands at 44.9% of the total population, translating to 19.9 million people. These millions form a powerful purchasing block. According to the African Development Bank, the middle class spends between US$2 and US$20 a day, on average.
Morris Aron, an economist in Nairobi, says the swelling middle class, with its thicker wallets and bigger bank accounts, has given rise to a thriving shopping-mall lifestyle, burgeoning housing market, booming automobile industry, improved banking performance, and growing domestic tourism.
The fast-increasing middle-class population is also benefiting from a commodities boom and more foreign investment in the past decade, mainly from Asian countries, such as China, Japan, and India.
So what areas are hot, and where should young job seekers and entrepreneurs look for promising career prospects?
Mobile money takes off.
Kenya is one of the world’s fastest-expanding mobile phone markets, thanks to its large middle- class population. A whopping 93% of Kenyans are mobile phone users, while 73% are mobile money customers. Moreover, 23% use mobile money at least once a day.
A whopping 93% of Kenyans are mobile phone users, while 73% are mobile money customers. Moreover, 23% use mobile money at least once a day.
“There is massive potential for mobile money, which has become a necessity to millions of Kenyans. Today, a week cannot end without a Kenyan using Safaricom’s M-PESA and Airtel Money. The services are deeply ingrained in our daily lives,” says Aly-Khan Satchu, an independent analyst and CEO of Rich Management, a Kenyan financial portal.
The mobile phone’s penetration has enabled Kenya’s middle class to overcome poor communication infrastructure, which impeded progress in the past. Currently, most Kenyans access Internet on mobile phones and tablets, rather than the traditional desktop computer. Easily accessible Internet service has revolutionized trade, agriculture, and even healthcare.
Take advantage of mobile savings and microcredit.
There are more than 18 million Kenyans who use a mobile phone-based bank account to deposit or transfer money and to pay their bills. Other financial services are available too, including credit.
For instance, M-Shwari, a microcredit product for M-PESA customers, allows users to save and borrow money through their phone, while earning interest on their savings. On M-Shwari, small businesses and middle-class entrepreneurs can access credit at affordable rates, about 7.5%, as compared with commercial bank’s 18%. The product also simplifies banks’ bureaucratic borrowing processes.
Consider a career in rental real estate.
The property market has also emerged as one of the major beneficiaries of Kenya’s expanding middle class. Dan Karua, managing director for property company Lamudi, says Kenya’s property market, both in commercial and residential real estate, has ballooned by 25%. He pegs this growth on the emerging middle class.
“The real estate market is focused on renting properties, with 70% of house hunters, mainly the middle class, looking to rent,” Karua said in a recent press briefing, adding: “With lower interest rates, Kenya’s real estate market has great potential for growth.”
Don’t overlook the risks.
Even with its huge contribution to the growth of the economy and society’s wellbeing, critics say the middle class cannot propel Kenya’s development to the next level alone. “Most of them rely on salaries, yet the economy is not creating as many jobs as would have been desired to absorb the rising numbers of youth. Importantly, the tastes and preferences of the middle class keep changing and are unpredictable,” says Stephen Mutoro, the secretary general for the Consumers Federation of Kenya.
Samuel Nyandemo, an economics professor at the University of Nairobi, aptly captures the capriciousness of the country’s middle class. He compares their collective action with sheep. “They consume a product because their peers are, not because they want to. That is why coffee shops, bars, and cyber cafes are booming in major urban centers in Kenya,” he says. “On the other hand, they will avoid a certain product, say an electronic, because their friends said so. It is an unreliable and relatively confused group.”
While appreciating the risks of an economy banking on the middle class for growth, James Shikwati, director of the Inter Region Economic Network, says Kenya’s middle-income population needs to follow the lead of their counterparts in developed and emerging countries, particularly those who drive their nation’s industrial and knowledge economies.
“They should also stop being trapped in ‘imports’ and the culture of showing off that delivers nothing to the economy,” says Shikwati. To be useful, he says it is time the middle class helped evolve an ideology that can inform the social, economic, and political well-being of Kenya.
Scan the environment for new styles and products.
To cash in on the middle class’ ever-changing tastes and preferences, companies and individuals must constantly scan the environment for emerging styles or new products.
This may include surveying the middle class or even reading international papers. “We realized most of Kenya’s middle class copy the music, dressing, and shaving styles, and to some degree, the reading culture of their peers in the West,” says Abdilatif Mohamed, a shop owner in Nairobi’s Eastlands area. “That is why we play the kind of music you’ll listen to when in London. We also sell the cloths and dresses the middle class in the United States put on.”
Mohamed says he’s constantly in touch with his trade partners in Texas and Birmingham, who advise him on upcoming fashions. “The middle class is particular with taste. You cannot convince them otherwise.”
East Africa’s growing middle class hits 29 million
Shoppers queue to be served at a till at Nakumatt Westgate in Nairobi. The middle class usually does the bulk of their shopping in supermarkets. Picture: File
By Christine Mungai, Special Correspondent
Posted Sunday, May 22 2011 at 12:16
Stanslaus Kimani, 27, lives in a two-bedroomed flat in Nairobi’s South C estate, and works at one of the city’s investment banks. He is also a Bachelor of Commerce student at the University of Nairobi, and pays school fees for his younger brother in secondary school.
His daily expenses total a little over $20 a day. According to a recent report by the African Development Bank (ADB), that puts him in the “high income” or rich class — in the same ranks as Nigerian businessman Aliko Dangote, the richest man in Africa with a net worth of about $13.8 billion.
Mr Kimani doesn’t agree with that categorisation. “Twenty dollars a day is not rich. Certainly I’m not poor, but there are people in this city that can comfortably spend more than Ksh 15,000 ($175) a day. Those people could be called rich. I think of myself as somewhere in the middle.”
Africa’s middle class has been growing modestly in the past decade, but ADB admits that it is difficult to define who exactly falls into this group, and even harder still to establish how many middle class people there are in Africa.
The report estimates the size of the middle class — those spending between $2 and $20 a day — at about 313 million people, or 34.3 per cent of the continent’s population — a spike from 111 million two decades ago.
In East Africa, the figure comes to a total of about 29.3 million, representing an average of 22.6 per cent of the population; 44.9 per cent of Kenya’s population, 18.7 per cent in Uganda, 12.1 per cent in Tanzania, 7.7 per cent in Rwanda, and 5.3 per cent in Burundi.
The report notes that a well established middle class is catalytic to the growth of democratic space. It is certainly no coincidence that two of the countries with the largest percentage of middle class citizens in Africa —Tunisia (89.5 per cent) and Egypt (79.7 per cent) — reached a tipping point and overturned their corrupt, repressive regimes.
Experts assert that long term economic growth in the region is inexorably linked to the rise of the middle class consumer. Global management consulting firm McKinsey & Company reports that from 2005 to 2008, consumer spending across the continent increased at a compound annual rate of 16 per cent, more than twice the GDP growth rate.
In 2008, nearly 85 million households in Africa, like Kimani’s, had an income of above $5,000 a year, the level at which households begin to spend more than half of their income on items other than food. McKinsey projects that the number of households with discretionary income could rise by 50 per cent in the next decade, reaching 128 million households. By 2030, the continent’s top 18 cities are expected to have a combined spending power of $1.3 trillion.
In Nigeria, for example, the collective buying power of households earning $1,000 to $5,000 a year doubled from 2000 to 2007, reaching $20 billion: Nearly seven million additional households have enough discretionary income to take their place as consumers.
Nairobi economist Ignatius Gabriel says the ability to do the bulk of household shopping in a supermarket is one of the filters that separates the poor and the middle class.
“Once you are able to do your household shopping in a supermarket, then you have begun to move away from the ‘kadogo’ economy that characterises poor households, especially in urban areas. You can’t bargain or pay on credit in a supermarket, and the tiny sizes of goods are usually not available. It means you are no longer living hand-to-mouth.”
Companies targeting the middle class consumer have experienced a boom in recent years, particularly in consumer goods, retail banking, telecom and housing.
In 2010, the turnover of Kenyan supermarket chain Nakumatt increased by 15 per cent, and 11 new stores were opened, nine in Kenya and two in Uganda, bringing the total number of stores in the region to 32. This year, expansion into Tanzania is in the offing. In Rwanda, Nakumatt has signed up to a new location in Kigali and is looking at more locations in the country.
But other analysts believe that this apparent growth of purchasing power should be tempered with caution, as it could actually be a sign of widening inequality.
1 |
ichoboy01
JF-Expert Member
- Mar 6, 2017
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hawezi kujibu hata siku moja na huwez kua na majibu hahahahahahaha hata nikuachie mwez mmoja huwez jibu maswali yangu so hakuna haja ww unafkiri kua na uchumi mkubwa ndio umefika au unadhani ukubwa wa pua ni wingi wa kamasi, sie hua hatutangaz lakin mutajionea kwa macho na ndio maana mpaka leo hamuamini kama hii ni tanzania ile mlikua munawaza, hii ndio Tanzania of 2017 with growing economy of about 7% second in Africa..wakati dar ikiwa the fastest growing city in Africa. usijali sana utaelewa tuI do not need to answer you on anything...you can continue leaving in your own dreamland that majority of Kenyans are poor ..the next time you wake up you will be shocked at whats happened.. The evidence of growing fast growing middle class in kenya should give you an idea about kenya's poverty if you are a critical thinker...it means many people are rising out of poverty in kenya and many more. Anyway that is not my task to explain to you
KENYA’S MIDDLE CLASS IS GROWING: HOW YOU CAN CASH IN
Mark Kapchanga · @kapchanga · March 12, 2015
- SHARE
Mark Kapchanga[/paste:font]
Mark Kapchanga is a media and economic consultant. He is a former senior economics writer for The Standard newspaper in Kenya and is currently pursuing a PhD in business reporting.
Email Mark
@kapchanga
Christine Lagarde, managing director of the International Monetary Fund, dubbed Kenya’s economic gains over the last few years “nothing short of remarkable”. And few are benefiting more from this progress than the country’s burgeoning middle class.
With an average annual growth of 5%, the Kenyan middle class is expected to continue expanding, bringing the country closer to its grand plan of becoming a middle-income nation by 2030.
The middle-class population in Kenya now stands at 44.9% of the total population, translating to 19.9 million people. These millions form a powerful purchasing block. According to the African Development Bank, the middle class spends between US$2 and US$20 a day, on average.
Morris Aron, an economist in Nairobi, says the swelling middle class, with its thicker wallets and bigger bank accounts, has given rise to a thriving shopping-mall lifestyle, burgeoning housing market, booming automobile industry, improved banking performance, and growing domestic tourism.
The fast-increasing middle-class population is also benefiting from a commodities boom and more foreign investment in the past decade, mainly from Asian countries, such as China, Japan, and India.
So what areas are hot, and where should young job seekers and entrepreneurs look for promising career prospects?
Mobile money takes off.
Kenya is one of the world’s fastest-expanding mobile phone markets, thanks to its large middle- class population. A whopping 93% of Kenyans are mobile phone users, while 73% are mobile money customers. Moreover, 23% use mobile money at least once a day.
A whopping 93% of Kenyans are mobile phone users, while 73% are mobile money customers. Moreover, 23% use mobile money at least once a day.
“There is massive potential for mobile money, which has become a necessity to millions of Kenyans. Today, a week cannot end without a Kenyan using Safaricom’s M-PESA and Airtel Money. The services are deeply ingrained in our daily lives,” says Aly-Khan Satchu, an independent analyst and CEO of Rich Management, a Kenyan financial portal.
The mobile phone’s penetration has enabled Kenya’s middle class to overcome poor communication infrastructure, which impeded progress in the past. Currently, most Kenyans access Internet on mobile phones and tablets, rather than the traditional desktop computer. Easily accessible Internet service has revolutionized trade, agriculture, and even healthcare.
Take advantage of mobile savings and microcredit.
There are more than 18 million Kenyans who use a mobile phone-based bank account to deposit or transfer money and to pay their bills. Other financial services are available too, including credit.
For instance, M-Shwari, a microcredit product for M-PESA customers, allows users to save and borrow money through their phone, while earning interest on their savings. On M-Shwari, small businesses and middle-class entrepreneurs can access credit at affordable rates, about 7.5%, as compared with commercial bank’s 18%. The product also simplifies banks’ bureaucratic borrowing processes.
Consider a career in rental real estate.
The property market has also emerged as one of the major beneficiaries of Kenya’s expanding middle class. Dan Karua, managing director for property company Lamudi, says Kenya’s property market, both in commercial and residential real estate, has ballooned by 25%. He pegs this growth on the emerging middle class.
“The real estate market is focused on renting properties, with 70% of house hunters, mainly the middle class, looking to rent,” Karua said in a recent press briefing, adding: “With lower interest rates, Kenya’s real estate market has great potential for growth.”
Don’t overlook the risks.
Even with its huge contribution to the growth of the economy and society’s wellbeing, critics say the middle class cannot propel Kenya’s development to the next level alone. “Most of them rely on salaries, yet the economy is not creating as many jobs as would have been desired to absorb the rising numbers of youth. Importantly, the tastes and preferences of the middle class keep changing and are unpredictable,” says Stephen Mutoro, the secretary general for the Consumers Federation of Kenya.
Samuel Nyandemo, an economics professor at the University of Nairobi, aptly captures the capriciousness of the country’s middle class. He compares their collective action with sheep. “They consume a product because their peers are, not because they want to. That is why coffee shops, bars, and cyber cafes are booming in major urban centers in Kenya,” he says. “On the other hand, they will avoid a certain product, say an electronic, because their friends said so. It is an unreliable and relatively confused group.”
While appreciating the risks of an economy banking on the middle class for growth, James Shikwati, director of the Inter Region Economic Network, says Kenya’s middle-income population needs to follow the lead of their counterparts in developed and emerging countries, particularly those who drive their nation’s industrial and knowledge economies.
“They should also stop being trapped in ‘imports’ and the culture of showing off that delivers nothing to the economy,” says Shikwati. To be useful, he says it is time the middle class helped evolve an ideology that can inform the social, economic, and political well-being of Kenya.
Scan the environment for new styles and products.
To cash in on the middle class’ ever-changing tastes and preferences, companies and individuals must constantly scan the environment for emerging styles or new products.
This may include surveying the middle class or even reading international papers. “We realized most of Kenya’s middle class copy the music, dressing, and shaving styles, and to some degree, the reading culture of their peers in the West,” says Abdilatif Mohamed, a shop owner in Nairobi’s Eastlands area. “That is why we play the kind of music you’ll listen to when in London. We also sell the cloths and dresses the middle class in the United States put on.”
Mohamed says he’s constantly in touch with his trade partners in Texas and Birmingham, who advise him on upcoming fashions. “The middle class is particular with taste. You cannot convince them otherwise.”
East Africa’s growing middle class hits 29 million
PRINTRATING
Shoppers queue to be served at a till at Nakumatt Westgate in Nairobi. The middle class usually does the bulk of their shopping in supermarkets. Picture: File
By Christine Mungai, Special Correspondent
Posted Sunday, May 22 2011 at 12:16
Stanslaus Kimani, 27, lives in a two-bedroomed flat in Nairobi’s South C estate, and works at one of the city’s investment banks. He is also a Bachelor of Commerce student at the University of Nairobi, and pays school fees for his younger brother in secondary school.
His daily expenses total a little over $20 a day. According to a recent report by the African Development Bank (ADB), that puts him in the “high income” or rich class — in the same ranks as Nigerian businessman Aliko Dangote, the richest man in Africa with a net worth of about $13.8 billion.
Mr Kimani doesn’t agree with that categorisation. “Twenty dollars a day is not rich. Certainly I’m not poor, but there are people in this city that can comfortably spend more than Ksh 15,000 ($175) a day. Those people could be called rich. I think of myself as somewhere in the middle.”
Africa’s middle class has been growing modestly in the past decade, but ADB admits that it is difficult to define who exactly falls into this group, and even harder still to establish how many middle class people there are in Africa.
The report estimates the size of the middle class — those spending between $2 and $20 a day — at about 313 million people, or 34.3 per cent of the continent’s population — a spike from 111 million two decades ago.
In East Africa, the figure comes to a total of about 29.3 million, representing an average of 22.6 per cent of the population; 44.9 per cent of Kenya’s population, 18.7 per cent in Uganda, 12.1 per cent in Tanzania, 7.7 per cent in Rwanda, and 5.3 per cent in Burundi.
The report notes that a well established middle class is catalytic to the growth of democratic space. It is certainly no coincidence that two of the countries with the largest percentage of middle class citizens in Africa —Tunisia (89.5 per cent) and Egypt (79.7 per cent) — reached a tipping point and overturned their corrupt, repressive regimes.
Experts assert that long term economic growth in the region is inexorably linked to the rise of the middle class consumer. Global management consulting firm McKinsey & Company reports that from 2005 to 2008, consumer spending across the continent increased at a compound annual rate of 16 per cent, more than twice the GDP growth rate.
In 2008, nearly 85 million households in Africa, like Kimani’s, had an income of above $5,000 a year, the level at which households begin to spend more than half of their income on items other than food. McKinsey projects that the number of households with discretionary income could rise by 50 per cent in the next decade, reaching 128 million households. By 2030, the continent’s top 18 cities are expected to have a combined spending power of $1.3 trillion.
In Nigeria, for example, the collective buying power of households earning $1,000 to $5,000 a year doubled from 2000 to 2007, reaching $20 billion: Nearly seven million additional households have enough discretionary income to take their place as consumers.
Nairobi economist Ignatius Gabriel says the ability to do the bulk of household shopping in a supermarket is one of the filters that separates the poor and the middle class.
“Once you are able to do your household shopping in a supermarket, then you have begun to move away from the ‘kadogo’ economy that characterises poor households, especially in urban areas. You can’t bargain or pay on credit in a supermarket, and the tiny sizes of goods are usually not available. It means you are no longer living hand-to-mouth.”
Companies targeting the middle class consumer have experienced a boom in recent years, particularly in consumer goods, retail banking, telecom and housing.
In 2010, the turnover of Kenyan supermarket chain Nakumatt increased by 15 per cent, and 11 new stores were opened, nine in Kenya and two in Uganda, bringing the total number of stores in the region to 32. This year, expansion into Tanzania is in the offing. In Rwanda, Nakumatt has signed up to a new location in Kigali and is looking at more locations in the country.
But other analysts believe that this apparent growth of purchasing power should be tempered with caution, as it could actually be a sign of widening inequality.
1 |
LangatKipro
JF-Expert Member
- Jul 16, 2016
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Whacha tutaona...that is a good statement from you. Lets all wait and see what will happen in the future.I agree with you perfectly
eddy25r
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We don't like childish dick measuring contests ...
saadeque
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unajidai ujuaji mwingi ndio nmejua wenibure kabisa....ni likoni gani iyo?tuambie iyo picha umeeka apo ni likoni kuanzia wapi iyo iliyoenea ivo?ati unajua msa..bure kabisa
Ngorunde
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ntamaholo
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Ha ha ha ha umevunja mbavu zangu bure
ntamaholo
JF-Expert Member
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Aliyetukana ni jambazi, huyu anauliza tu nyanya yako hajambo?
Hahaha.... Bado unaharahara hapa kwa JF..... Mwenyewe hata hauna baisikeli ya mbao.... Mbashite shida tupu. Danganyika hamna chochote mbona haikuiingii akilini
ichoboy01
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Ulitaka nisijue au nisiseme ukweli niache kama naijua mombasa basis ninyamaze kisa we mkenya more superior au sio hahahhaa ukweli nishasema na kama kuwavua nguo sokoni nishawavua leta Sera zingine sasa bado kisumu sasa maana mumekuja patamu sana
ichoboy01
JF-Expert Member
- Mar 6, 2017
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Viwanda Kenya nzima viko Nairobi ndio maana population yote iko kibera,mathare na matopeni by 2030 watafika 6million hahaha eti mko kwenye middle economy we ushawah kuskia wapi nchi ya middle economy inatangaza baa LA njaa au ina biggest poor slum in the world...hamuupendi umaskini wakati masikini wakutupa