New debt system set for February

A new policy that moves the role of borrowing from control of the Treasury Cabinet Secretary to the Public Debt Management Office (PDMO) will come into force next month. The 2012 Public Finance Management Act is seeking to introduce an independent director to be competitively selected by the Public Service Commission rather than appointed by the Cabinet Secretary to manage the day to day operations of the office. While the office will still operate from the Treasury, the law envisions an independent office with far-reaching powers in raising funds through borrowing to finance budget deficit, managing debt at minimum cost

Win for saccos as member savings grow to Sh766bn

Member deposits in savings and credit co-operative societies (saccos) grew by Sh76 billion in the year to June 2018, new data by the Treasury shows, reflecting an improving investment culture among Kenyans. Total member deposits increased to Sh766 billion over the period compared to Sh690 billion the previous year — further raising the profile of saccos in the financial sector. The Treasury attributed the increase in savings to stricter enforcement of governance and accountability standards in co-operatives and the commencement of operations by the National Youth Service (NYS) Huduma Sacco. Some analysts said that the consistent growth in sacco deposits

How Africa can tap tech disruption opportunities

Technological disruption is no longer news to any industry. Terms such as artificial intelligence, machine learning, cloud computing, robotics, 3D printing, and the Internet of Things (IoT) are increasingly becoming commonplace. These disruptive technologies, asserts a new study, can transform Africa if duly utilised. However, concerns linger that Africa may not be entirely prepared to reap the benefits of the so-called Fourth Industrial revolution (4IR). In a recent Brookings Institution study he co-authored with senior fellow Landry Signé, former Central Bank governor Prof Ndung’u, now an executive director at the African economic research consortium, says that so far, “it does

Treasury projects marginal revenue jump to Sh2.13trn

The National Treasury has factored a marginal 2.4 percent increase in total revenues for the next fiscal year in line with intentions to lower expenditure and pursue austerity. According to the Draft Budget Policy Statement (BPS), revenue is expected to increase by only Sh49.3 billion to hit Sh2.13 trillion as total spending is cut by Sh130.4 billion to Sh2.74 trillion. The 4.5 percent expenditure cut is nearly double that of the revenue increase implying that the Treasury has factored a larger extent of the reduction in expenditure in the coming fiscal year. The draft BPS, which sets the priorities ahead

Revealed: What Africa CEOs fear most in 2020 outlook

Policy uncertainty has risen to become the top threat for businesses in Africa, according to chief executives interviewed for a new survey by advisory firm PricewaterhouseCoopers (PwC). The CEOs are also concerned about availability of key skills among their staff as well as overregulation by government agencies. “Policy uncertainty, a new threat in this year’s survey, rose to the top in Africa, replacing social instability,” PwC said in its 22nd Annual Global CEO Survey whose results were published this week. “There is broad consistency in what keeps CEOs up at night around the world. Policy uncertainty is among the ten

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