Envisioning a cheaper world

Kenya's #1 newsletter among business leaders & policy makers

January 24, 2025

It's Brian from The Kenyan Wall Street.

On today's edition of the ‘Daily Brief’, we dig into President Donald Trump's push for interest rate cuts and oil price reductions globally.

Also…we look at why small businesses in Kenya are now warming up to insurance covers

Let's get into it…

FINANCE

☂️ How Political Tension, Economic uncertainty are luring businesses to insurance

Screengrab from WYLDE Insurance & Awareness Report

Small and Growing businesses (SGBs) are increasingly taking insurance against political and economic risks as a hedge against loss of revenue and property, a new survey by WYLDE International and AAR has found.

But hold up…the survey reveals that there is still more work to be done as 58% of small and growing business owners not considering taking insurance in the future while 24% are not sure. Since 2023, violent protests and chaos have intensified leading to destruction of property and resultant losses. With these apparent risks, there is demand for insurance but businesses still cite high premiums, delayed claims, and complex policies as major hindrances.

More on this story in this article »»»

GLOBAL ECONOMY

🌐 Head to Head : Trump, Powell, and the Fed

President Trump speaking at WEF in Davos, Switzerland

Newly inaugurated US President, Donald Trump, is pushing the Federal Reserve to cut interest rates to ease monetary expansion. A decision that would influence the rest of the world to follow suit.

Speaking at the World Economic Forum (WEF) in Davos, Switzerland, President Trump revealed plans to deregulate the US business space by cutting taxes and seeking fairer trade dynamics with other countries. Enterprises will benefit from this move, but Trump believes that the monetary policy should accompany this incentive for growth. Despite the Fed’s commitment to independence, President Trump’s first term saw a tug-of-war between his administration and the reserve institution.

What are the implications for Kenya? Read here »»»

Today's Poll

What are your expectations of President Donald Trump's policies for the global economy?

Yesterday's Poll Results

Is the Startups Bill going to benefit the innovation ecosystem or is it another Trojan horse for increased government control on businesses?

⬜️⬜️⬜️⬜️⬜️⬜️ It is beneficial (11.76%)

🟩🟩🟩🟩🟩🟩 It is unwarranted intervention (88.24%)

🛢️ Oil prices may fall…but Kenya may not benefit

An oil rig

President Donald Trump also urged OPEC to reduce oil prices in line with his energy objectives. Consequently, Kenya’s supplier UAE Murban declined 2.1% week on week from to trade at US$81.91 per barrel.

The global benchmark Brent Crude declined by 3.1% to trade at US$78.39 as WTI eased 3.6% week on week to trade at US$74.74 per barrel.

⬇️ However, Kenya may not experience a drop in pump prices as it signed a deal with 3 state-owned Gulf companies in April 2023 as a temporary measure to help ease foreign exchange pressures.

Here's more on the story »»»

PUBLIC POLICY

🏦 Govt Seeks KSh 70bn in Reopened Infrastructure Bonds

The balance

The Central Bank of Kenya (CBK) is seeking KSh 70 billion from two reopened infrastructure bonds to finance projects in the current fiscal year.

The reopened 14 year paper, which was first issued in 2022, has a remaining time to maturity of 11.8 years and a 13.9% coupon rate, while the 17 year paper with a 14.3% coupon rate has 15.1 years to maturity. Under CBK’s amortised redemption structure, the apex bank will pay back the bonds to investors in parts over the life of the bond, instead of all at once.

More on this story in this article»»»

💵 Brand New Money!

Tanzania to Roll out New Banknotes in February

Tanzania is set to roll out new banknotes including the ongoing withdrawal of shilling notes issued from 1985 to 2003,

kenyanwallstreet.com/tanzania-to-roll-out-new-banknotes-in-february

⏱️Also Read

Gov't Faults Cement Makers for Abetting Illegal Gypsum Mining

The Ministry of Mining has decried the illegal gypsum extraction in the country, accusing local cement makers of purchasing it illegally.

kenyanwallstreet.com/govt-faults-cement-makers-for-abetting-illegal-gypsum-mining

Bill Seeks to Compel Startups to Allocate 15% of Expenses on Research

Startups risk being locked out from admission into incubation programmes if they do not meet the criteria in the Startup Bill.

kenyanwallstreet.com/bill-seeks-to-compel-startups-to-allocate-15-of-expenses-on-research

MOBILITY

🚕 Inside Bolt’s KShs. 14bn Plan to Transform Safety for Riders and Drivers

Bolt

In November 2023, online taxi platform – Bolt – purged over 5,000 drivers for not complying with safety guidelines. However, ride hailing company realized that being more proactive in its measures would have a greater impact in transforming the sector into a reputable haven that customers can trust.

Over the next three years, Bolt will invest KSh 14 billion in raising awareness of their safety features and scaling up preventive measures. Dimmy Kanyankole – General Manager Bolt Tanzania, Uganda and Kenya spoke to Brian Nzomo about these plans

Read the full article here »»»

▶️ Video of the Week

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“If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion.”