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Biden Quits and Endorses VP, Microfinance Banks Lose More Money
Here's what you need to know to start your week
Kenyan Wall Street
July 22, 2024
Direct to your inbox every Monday at 9am (EAT)
What's Inside
Source: NSE Market Report for Week Ended July 19th
Joe Biden Quits White House Race, Endorses VP Kamala Harris
This week begins with the news that US President Joe Biden has decided not to seek reelection, and instead endorsed his Vice President Kamala Harris for the Democratic Party nomination.
The news follows weeks of concern within the Democratic Party (DNC) about President Biden’s health, especially after months of incidents where he appeared confused.
It is likely a boost to former US President Donald J. Trump, who now does not have to face an incumbent in November.
With just three months to the elections, it likely places VP Kamala Harris at a disadvantage, as she has to play catch up to Trump.
“I believe that it is in the best interest of my party and the country for meto stand down and to focus solely on fulfilling my duties as President for the remainder of my term,” Biden said in a statement on Sunday. After his exit, Trump reportedly told CNN that Biden will go down as “the single worst president by far in the history” of the United States.
The rare historic decision is the first time since President Lyndon Johnson decided not to run for re-election in 1968. It is likely that its rarity, the short window for the DNC to rally around another candidate to defeat Trump, as well as recent events such as the attempt on Trump’s life, will reshape US politics over the next few months.
The DNC has about two weeks to decide on a candidate to replace Biden, which makes the choice of Kamala a do or die for the party. On Sunday evening, former first lady and presidential candidate Hilary Clinton also endorsed Kamala as the party’s nominee, beginning what is likely to be the same process as DNC veterans try to build consensus quickly.
Why it Matters
The US’ primary role in the globe has been undergoing a critical transformation since Trump beat Hillary Clinton in 2016. The election of a relative outsider, especially one who built a campaign about placing America first, saw the US begin rescinding its primary ‘global policeman’ role. But Trump’s election also opened new fissures in how other countries relate with Washington, and his reelection would likely re-trigger that process.
Biden’s decision to quit comes just two months after he met President William Ruto in Washington in a state visit where they announced a raft of deals that are likely to be on the line if Trump is elected in November, or even if the new Democratic Party nominee decides on a different route.
But it is also likely to give President Ruto some much needed breathing space, since events at home since May have reshaped his continuing efforts to be Washington’s main man in the region. The likely reshaping of how the US interacts with Nairobi, especially in light of ongoing protests that have left over 50 people dead and hundreds injured, will depend on which side the die falls in November.
While taxes are inevitable and a legitimate source of government revenue, we cannot tax everything and anything.“
-Justice Prof (Dr) Nixon Sifuna
Microfinance Banks Losses Grew to KSh 2.4bn in 2023
Kenya’s Microfinance Banks (MFBs) sank deeper into loss territory making a combined KSh2.4 billion loss before tax as at December 31, 2023, compared to a loss of KSh980 million as at December 31, 2022.
According to Central Bank of Kenya, seven institutions reported profits, while the remaining seven institutions registered losses.
The main contributors to the loss position are Kenya Women Microfinance Bank Limited, Faulu Microfinance Bank Limited, and Rafiki Microfinance Bank Limited, which reported losses before tax of KSh938 million, KSh719 million, and KSh434 million, respectively.
The decline in the performance of the sector is attributed to an increase in expenses by 6 percent from KSh13.1 billion in 2022 to KSh13.9 billion in 2023, and a decline in revenue by 3 per cent from KSh 13.2 million in 2022 to KSh12.8 million in 2023.
The key expense drivers were impairment losses on loans and staff costs that increased by 957 per cent and 18 percent respectively from KSh114 million and KSh3.7 billion in 2022 to KSh1.2 billion and KSh4.3 billion respectively in 2023, owing to loan write offs and an increase in staff costs.
Read More.
Don't forget to attend these events...
Name | Location | Date |
|---|---|---|
The Africa Investment Risk and Compliance Summit | Washington, DC. | July 22-23 |
Safaricom AGM | Nairobi, Virtual | July 25 |
Angaza Awards | Nairobi | Oct 16-18 |
2nd Annual Women Who Build Africa (WWBA) Assembly | Nairobi | September 5 |
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Have a great week!