Biden says "NO" to Africa trip.

Your daily dose of Kenyan business & finance news

Kenyan Wall Street
October 09, 2024

⛔ Biden cancels his only trip to Africa

President Biden has been preparing for weeks to visit Angola and Germany however the trip has been abruptly cancelled with the White House citing the natural disaster caused by a recent hurricane to hit the East Coast and another expected to make landfall today and tomorrow. The Luanda trip was meant to solidify Luanda as a US strategic ally however its postponement - just weeks to the November elections - means that President Biden, who will not be on the ticket, will complete his first and last term without having visited the African continent. Why can’t Biden find the time to visit Africa?

🤕 High interest rates cripple corporate appetite for debt

August witnessed record lows for corporates taking debt from commercial banks, recording only 1.3% compared to July’s 3.7%. Central Bank of Kenya (CBK) attributes the decline to the “exchange rate valuation effects on foreign currency denominated loans following the appreciation of the Shilling, and the lagged effects of monetary policy tightening.” The ratio of gross non-performing loans (NPLs) to gross loans edged higher to 16.7% in August 2024 compared to 16.3% in June. This makes sense given yesterday’s announcement of a 75 basis point rate cut as the CBK Governor hoped to encourage private sector borrowing to help further spark spending within the economy. Dive deeper into the date.

⚡Multinational electric companies flock to Kenya’s green economy

Two major electric multinationals - Schneider Electric & Chint Global - have announced that they are doubling down on their investments in Kenya, encouraged by the government’s environment friendly initiatives such as e-mobility and renewable energy. Schneider Electric plans to intensify its entry into the e-mobility space with standardized charging cables for electric vehicles while Chint Global recently announced setting up of meter manufacturing plant in Nairobi, its 10th overseas factory. What does this mean for Kenya?

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