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Parting ways...
Kenya's #1 newsletter among business leaders & policy makers
Howdy! It's Brian again.
In today's edition of ‘The Daily Brief’, global credit rating agencies are in the spotlight again…this time, plans are underway for a truly African agency.
We also look at the oversubscribed Infrastructure Bonds and why small businesses in Kenya are shying away from digital payment systems…
These…and more stories…
ECONOMY
Parting ways : Africa's quest for an independent credit-rating agency
Credit Rating Agency
Kenya is calling out global credit rating agencies for unfairly costing Africa US$75 billion in lost opportunities. President William Ruto blasted them as financial gatekeepers who punish African economies while favoring others with similar fundamentals. Moody’s recent upgrade of Kenya’s outlook exposed its own inconsistency, proving the July 2024 downgrade was premature. Nigeria also suffered from an unfair Moody’s downgrade in 2023, damaging its financial standing. In response, Africa is taking matters into its own hands with the launch of AfCRA in June 2025. This homegrown credit rating agency aims to bring fairness, transparency, and independence to financial assessments. The AU insists AfCRA won’t replace the global giants but will provide a much-needed African perspective.
Bottom line : Africa is no longer waiting for fair play—it’s rewriting the rules.
Today's Poll
Do you think the African Credit-rating Agency will do a better and fairer job than global rating agencies like Moody's and Fitch? |
Yesterday's Poll Results
Would you prefer VAT addition to boost state revenue or VAT reduction to improve individuals' consumption?
🟨⬜️⬜️⬜️⬜️⬜️ Increase VAT (17.02%)
🟩🟩🟩🟩🟩🟩 Reduce VAT (82.98%)
CAPITAL MARKETS
Oversubscribed Infrastructure Bonds
Central Bank of Kenya (CBK)
The Central Bank of Kenya (CBK) raised KSh 130.8 billion from two reopened infrastructure bonds in its February sale, against a target of KSh 70 billion, reflecting a 277% subscription rate. Investors bid KSh 193.9 billion, but CBK accepted only 67.5%, rejecting KSh 63.1 billion as it pushed for lower rates. The 14-year bond, with a yield of 13.98%, attracted KSh 93.1 billion, while the 17-year bond, yielding 14.28%, drew KSh 100.8 billion, as investors sought to lock in high returns amid falling interest rates. The 14-year bond will see 50% redemption in 2030 and the rest in 2036, while the 17-year bond will be partially repaid in 2033, with final redemption in 2040. In the weekly auction, T-bills were oversubscribed at 184.4%, though the government accepted only KSh 25.1 billion out of KSh 44.3 billion bids, as yields declined across all maturities. Meanwhile, CBK announced Kenya’s first domestic bond buyback, targeting KSh 50 billion from three maturing bonds to ease refinancing pressure in 2025.
Bottom line : Investors rushed in for high yields, but CBK played hard to get—tightening the purse strings while keeping rates in check.
FINANCE
"Kenya’s Cash-Only SMEs: Counting Losses as Digital Payments Rise"
SMEs
Cash-only shops face a cash-flow drought, as customers go cashless and leave them out. Fear of fraud keeps them stuck in the past, but digital payments are growing fast. More sales, less risk, and data for loans, Kenya’s cashless future is setting the Cash-only SMEs in Kenya are losing customers and facing cash-related security risks. Many fear digital payments, but those who switch enjoy more sales, less risk, and easier financing. Even a small increase in digital transactions fuels massive economic growth.
Bottom line : The shift to e-payments is picking up, with convenience and efficiency driving adoption. Go digital or go broke—Kenya’s cashless future won’t wait
News Desk
ANALYSIS
Opinion and Commentary
If you are not willing to risk the usual, you will have to settle for the ordinary.
Video of the Day
Have an enjoyable weekend!