Useless County Budgetary allocations

Your daily dose of financial news

December 05, 2024

Hello 👋 

Here is Brian from The Kenyan Wall Street.

Welcome to today's edition of our daily newsletter…

Our leading stories today...

Nairobi, 9 Other Counties, Spent Nothing on Development in Q1 24/25 -Controller of Budget

Imagine the nation's capital being the largest contributor to the GDP, receives an equally substantial share of disbursements from the National Gov't, and yet not even a dime is spent on development. Nairobi is among ten counties that did not report any expenditure on development programmes in the first quarter of the Financial Year 2024/25, covering July to September 2024. County governments’ development expenditure amounted to Kshs 6.71 billion, translating to an absorption rate of 3 per cent of the annual development budget of Kshs 205.33 billion. This was a decline from the 4 per cent absorption rate in a similar FY 2023/24 period when the County Governments’ cumulative expenditure on development activities was Kshs 6.92 billion. Other than Nairobi, Baringo, Elgeyo-Marakwet, Kajiado, Kisii, Lamu, Nyandarua, Tana River, Uasin Gishu and West Pokot Counties also did not report any expenditure on development programmes during the period. Which makes you wonder…What the heck were they doing with the money? Also read why pending bills in counties are so high…

 Kenya’s Private Sector Activity Rises to 6-Month High in November- Stanbic PMI

Kenyan firms saw improvement in business conditions in November, marked by improved sales as demand for goods and services increased amid stable employment, the latest Stanbic Purchasing Manager Index (PMI) shows. The index rose to 50.9 in November – the highest reading since May – from 50.4 in October, reflecting a marginal upturn in operating conditions. A PMI reading above 50.0 signals improvement in business conditions while a reading below 50.0 implies deterioration. The faster growth in sales prompted an increase in output leading to an expansion in the overall private sector activity. Does this signal incoming relief?

A graph of the Purchasing Managers’ Index (PMI)

Gov’t to Monetize Health Data in New Regulations

Medical researchers are set to face hefty costs in accessing health data under the new insurance scheme if the new set of regulations under the Digital Health Act are approved. According to the Digital Health (Health Information Management) Regulations, 2024, independent researchers will fork out KSh 30,000 to access health information of Kenyans receiving medical care in SHA-accredited facilities. Students pursuing a master’s degree will pay KSh 5,000 for the data, while those doing their PhDs will pay KSh 20,000. Students from middle-level colleges and undergraduates will pay KSh 500 to access this information, while research institutions will part with 1% of their total research budget to access the health data. Who is the government targeting with this monetisation drive?

Stories you missed

Spotify Reports 93% Growth in Local Consumption of Kenyan Music

Afropop musician, Bien Aime Barasa, has emerged as the ‘most streamed’ Kenyan music artist on streaming platform Spotify.

kenyanwallstreet.com/spotify-reports-93-growth-in-local-consumption-of-kenyan-music

Savannah Clinker Withdraws Bamburi Cement Takeover Bid

Savannah Clinker Limited has withdrawn its competing offer to acquire listed cement manufacturer Bamburi Cement Plc.

kenyanwallstreet.com/savannah-clinker-withdraws-bamburi-cement-takeover-bid

Relief for Banks as Parliament Proposes Extending Core Capital Hike to 8 years

Finance and Planning Committee has proposed to increase the period that commercial banks will need to raise core capital to KSh 10 billion

kenyanwallstreet.com/relief-for-banks-as-parliament-proposes-extending-core-capital-hike-to-8-years

Kenyans Avoid Chamas as Source of Financial Advice -FinAcess Survey

Kenyans are shifting away from informal, community-based sources such as chamas, instead seeking financial advice from family/friends.

kenyanwallstreet.com/kenyans-avoid-chamas-as-source-of-financial-advice-finacess-survey

Opinion and Commentary 

📡 A lot has been said about Starlink, but does it really match up to the hype? The Kenyan Wall Street tested the network and here is our assessment…

Two Months of Starlink at The Kenyan Wall Street, Here’s What We've Learned

The Kenyan Wall Street decided to get the Starlink kit and set it up on the roof of its offices at the Nairobi Securities Exchange Building. 

kenyanwallstreet.com/two-months-of-starlink-at-the-kenyan-wall-street-heres-what-weve-learned

On the Trading Floor

How Kenyan stocks performed today | SOURCE: NSE

Crypto prices today (data snapped at 6:22 pm) | SOURCE : Coin Market Cap

Video of the Day 

Always glad to have you reading. Adios!