Kenya’s Economy in the Past Week

economy kenyaAs political tensions heightened and temperatures rose, the past week had a lot to offer to the Kenyan economy. Among the many things that happened, three caught my attention and in my opinion they were significant to our economy.

Like the devil’s advocate, I will begin with the negative highlight of the week. The Mpeketoni attack that left more than 60 innocent Kenyans dead was a significant evil event in the week. The negative reputation it created for Kenya as an easy terrorist target with slow response from the security agencies; was not a good picture painted of us to the international community. These are the kind of things that scare away investors and tourists; who happen to be one of our major foreign income earners. Following the same, UK has issued fresh travel advisories to its citizens.

However, changing into the angel coming with good tidings, the positive highlights of the week that I considered significant were two. The first is the over-subscription of the Kenyan Euro bond floated in Europe. The overwhelming $8 billion offers, against the $2 billion needed was a sweet tide to ride on and boast of investor confidence in Kenya. Mark you the bond has a maturity period of 10 years; meaning investors have confidence in the Kenyan economy not only currently, but even into the far future.

The other smooth tide was the closing of a deal between Kenya and the European Union for a grant worth Kshs 52 billion. The grant that will go to support infrastructure and health related projects will be released in tranches over the next 7 years. Again, the West showed its solidarity with Kenya in matters finance and economics in a big way.

Those were my highlights; if you have any other that you feel was significant, share it below.

Enjoy your weekend.

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