KENYA NEWS


Kenya - Industry

The economy should have recovered in Q3, albeit frailly, after contracting for the first time in at least a decade in Q2 due to the pandemic. Exports increased in July–August after shrinking in Q2, while the fall in imports softened in the same period. However, this still points to weakened domestic demand. Moving forward, the situation was seemingly upbeat at the outset of Q4: Business conditions improved notably in October, with the private sector PMI climbing to a record high, boosted by strengthening aggregate demand as more restrictions were eased. However, a recent rise in Covid-19 cases prompted a snap-back of containment measures in early November, boding ill for activity. In other news, the government aims to borrow an additional KES 1.0 trillion (around USD 9.2 billion) for the current fiscal year (1 July 2020–30 June 2021) as revenues have dwindled, and is seeking a second IMF loan.


Kenya's machinery imports increase markedly on new projects

The value of machinery and transport equipment being imported into Kenya has risen significantly as the east African nation implements new infrastructure projects, the country's apex bank said on Tuesday.The machinery imports hit 42.7 billion shillings (about 396 million U.S. dollars) in August, the highest level since February when it stood at 399 million dollars, new economic data released on Tuesday by the Central Bank of Kenya showed.The imports, like other categories, slowed down from March but have been on the rise from June where they stood at 252 million dollars, from a low of 249 million dollars in April.One of the major infrastructure projects in Kenya that are currently being implemented is the Nairobi Expressway, a dual carriageway financed and built by China Road and Bridge Corporation (CRBC) in a build-operate-transfer model.Kenya also recently imported dozens of diesel multiple units as it revamps its railway transport.Other import categories which are on the rise include chemicals, manufactured goods, mineral fuels and lubricant.

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