World Bank projects economic growth for Kenya mainly driven by construction industry
A new World Bank report has painted a favourable economic growth for Kenya with the economy expected to grow at 5.4 percent in 2015, an improvement from the 2014 growth rate of 5.3 percent. The report also projects the growth rate in 2016 to be at 5.7 percent.
Speaking during the release of the report, World Bank country director for Kenya Diarietou Gaye said that economic growth for Kenya has all it takes to become one of the best performing economies in Sub Sahara Africa. But he added that this will be determined by the way the government responds and manages the challenges emerging from the current global economic environment.
Dabbed Kenya Economic Update (KEU), the report attributes the economic growth to ongoing infrastructure construction in the country and strong consumer demand.
Construction of the Mass Rapid Transit System in Kenya gets green light
Construction of the Mass Rapid Transit System in Kenya which will cost US$ 4m is set to be launched in the capital Nairobi and will be fully funded by the National Treasury.
The acting Director-general of public debt management at the Treasury, Jackson Kinyanjui confirmed the reports and said that the Ministry of Transport and Infrastructure accepted the proposal for the allocation of US$4m for the construction of the Mass Rapid Transit System.
“Treasury has accepted the implementation of the project. We are looking forward to smooth implementation,” said Mr. Kinyanjui in the letter addressed to Transport Principal Secretary John Mosonik and copied to Nairobi Governor Evans Kidero.
Newly constructed Mombasa port terminal to start operation in mid 2016
Multi-donor agency Trade Mark East Africa (TMEA), has hinted that the newly constructed Mombasa port terminal which cost US$ 30.9bn will be operational in June, 2016.
Dr. Chris Kiptoo, the TradeMark East Africa (TMEA) Kenya director said that the agency will hand over the facility to the Kenya Ports Authority (KPA) by mid next year.
The terminal which has a capability of increasing container space by 450,000 twenty-foot equivalent units (TEUs) at the port of Mombasa will be ready by June next year but will be fully operational by end of 2016.
Stanlib Kenya REIT to raise $120M in IPO
Stanlib Kenya Ltd. intends on raising up to $120m (12.5 billion Shillings) before November for the initial public offering (IPO) of what will be Kenya’s flagship Real Estate Investment Trust (REIT). Fahari I-REIT will be listed on the Nairobi Stock Exchange and SBG Securities, owned by the Standard Bank Group Ltd. will be the bookrunner for the IPO.
In a phone call with Bloomberg, Felix Gichaga, Stanlib Kenya’s Business Development Manager explained that the I-REIT offers investors diversification and allows ordinary Kenyans to get exposure to income-generating real estate assets, as the cost of entry is not as high as investing directly.
